Sonic Franchise Information
Sonic is a fast food restaurant chain that prides itself on superior customer service. Sonic uses carhops, allowing customers to place orders from their parked cars and having their food delivered by employees, sometimes on roller skates. Since the restaurant's beginning in 1953, Sonic has believed that owners make better operators and has placed a strong emphasis on the company's franchise system.
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Facts
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Sonic is a publicly held company based in Oklahoma City that owns, operates, and franchises over 3,500 drive-in restaurants, making it the largest chain of drive-in restaurants in the United States. The average Sonic restaurant totaled over $1.1 million in sales during the 2008 fiscal year, and average unit sales have increased every year since 1987. Sonic has one of the most extensive menus in the fast food industry and claims to be "Your Ultimate Drink Stop" with over 168,000 possible drink combinations. Sonic was ranked as one of Entrepreneur Magazine's 2009 Franchise 500.
History
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The first Sonic Drive-In restaurant opened in Shawnee, Oklahoma, in 1953 by Troy Smith. The original name of the first restaurant, which was a hamburger and root beer stand, was Top Hat Drive-In. The name change to Sonic was made in 1959 and continuous menu additions and variations followed. During the late 1950's, Sonic's use of curbside speakers in each parking spot led to the popular slogan "Service with the Speed of Sound". More recently, Sonic's slogan has changed to "America's Drive-In".
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Investment
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The total initial investment to franchise a Sonic restaurant ranges from $700,000 to $3 million. The Sonic Corporation charges an additional $45,000 franchise fee as well as a yearly 5 percent royalty fee. Sonic also charges franchisees 5.9 percent of profits for advertising fees, which include national and regional cable television advertising, radio commercials and newspaper advertisements.
Requirements
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Franchising a Sonic restaurant requires a 20-year agreement with a 10-year renewal option. Franchisees are required to have previous success in the restaurant industry as well as strong entrepreneurial skills. Sonic requires franchisees to have at least $1 million in financial liquidity before opening a restaurant. The financial requirements increase slightly if the owner/operator wants to franchise multiple restaurants: $1.5 million liquidity for three locations and $2 million liquidity for five or more restaurants. The average Sonic Drive-In has 24 to 36 parking stalls.
Training
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Sonic provides a 12-week training program for all new owner/operators. This training and development includes one week of classroom training, eight weeks of hands on restaurant training and three weeks of training at new store openings.
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