Sonic Drive In Restaurants

Franchise Concept: Drive-in restaurant
Actively seeking Franchisee's in: South, Southeast, Midwest, West, Worldwide

Sonic Dive In Restaurants

Started up in 1953, Sonic Drive In was the third and final restaurant venture of Troy Smith. After selling his small cottage-style diner and failing at a fried chicken venture, Smith finally discovered what it was that Shawnee, Oklahoma wanted. What the drive-in themed restaurant - then named Top Hat Drive In -gave its customer was the sensational thrill of tasty fast food without the hassle of having to get out of the car. A precursor to the drive-thru made famous by places like Burger King and McDonald\'s, the Drive-In is actually a more enjoyable and relaxing solution, according to many customers.

But Sonic has been successful not only by maintaining a strong fast food presence throughout the United States, but also by thriving throughout the years as a drive in. While other chains have gone under one by one since the fad died down, Sonic has survived and continues to serve quality fast food directly to the customers\' cars. Needless to say, the nostalgia of this old time tradition - or the novelty of it, depending upon the age of the customer - provides an irresistible attraction to a wide variety of clientele, making Sonic potentially a very profitable franchise option.

Offering classic 1950\'s diner menu options such as hamburgers and malt milk shakes, there are also unique specialty items offered that include the extra-long cheese Coney Island hot dogs and milkshakes flavored like Cream Pie.

Through various changes and innovations made rather recently, Sonic Drive In has been able to expand its number of store locations all within the past decade. Today there are nearly 3,000 store locations all across the nation, and the company boasts market capitalization that exceeds $1.5 billion.

One important thing is to consider when choosing a company to franchise is the special commitment that Sonic Drive In demonstrates in trying to differentiate itself from other major franchisors. With a strong support of individual ownership, Sonic Drive In has exhibited some of the lowest turnover rates for franchisee ownership within its industry. On the other end of the spectrum, customers love to come back, and therefore the franchisee with the Sonic Drive In option will have little difficulty in maintaining its dedicated base.

Another benefit to franchising a Sonic Drive In chain store today is the great timing of it. While many markets for other franchises are already saturated in the United States and even in other countries, Sonic Drive In is actively seeking out new franchisees to help carry the company through one of its biggest growing spurts. A few interesting statistics to remember include the fact that, since 1987, owners have increased their yearly sales, while company wide earning have gone up by nearly 70% over the last five years. Interestingly, it seems that hamburgers are the big seller here, selling $40 billion worth every year.

To own a Sonic Drive In, a prospective franchisee should be prepared to invest anywhere from just over $700,000 to just over $2 million. In addition, the franchisee should be able to prove his or her net worth of at least $1 million with $500,000 worth of liquid assets. Experience in the restaurant business is preferred along with the ability to demonstrate solid skills as an entrepreneur. The franchise term expires after 20 years, with a possibility for a 10-year renewal.

Franchise Information

Financial & Terms

Minimum Net Worth	$1,000,000
Equity/Liquid Capital	$500,000 and up
Min Total Investment	$700,000 to $1,200,000
Initial Franchise Fee	$30,000
Ongoing Royalty	1-5%
Advertising Fee	4 %

Contact Information

Address	Sonic Drive In Restaurants, 101 Park Ave., Suite 1400, Okalahoma City OK 73102
Sales Contact	David Vernon VP Franchise Sales

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