how much is a sonic franchise worth

Full Answer

How much does it cost to own a Sonic franchise?

The franchise fee for a single unit is $45,000, with a total estimated SONIC franchise cost ranging from $865,000 to $3.64 million (excluding land). The net worth of a partner can be used toward the total net worth/liquidity requirements. The term of a traditional SONIC franchise is 20 years, plus a 10-year renewal.

What does it cost to buy a franchise?

Most Popular Food Franchises and How Much They Cost

• McDonald's Franchise. You will need a minimum of $955,000 in nonborrowed, personal resources to be considered for a McDonald's franchise.
• Subway Franchise. ...
• Pinkberry Franchise. ...
• Wendy's Franchise. ...
• Domino's Pizza Franchise. ...
• Pizza Hut Franchise. ...
• Dunkin Donuts Franchise. ...
• Taco Bell Franchise. ...
• KFC. ...

How much does a Panchos franchise cost?

How much does it cost to open a Panchero's Mexican Grill Franchise? The estimated investment required to open a Panchero's Mexican Grill Franchise is between $404,325-$931,000. There is an initial franchise fee of $20,000-$30,000 which grants you the license to run a business under the Panchero's Mexican Grill name.

What is the average cost of a franchise?

While the franchisor can provide you with an estimate for the working capital needed, you should do your own research too. In general, most franchise fees are between $20,000 and $50,000. Mobile businesses or home-based businesses could be less than $20,000.

How much does a SONIC owner make a year?

Average Sonic Drive-In Owner Operator Driver yearly pay in the United States is approximately $69,794, which is 66% below the national average. Salary information comes from 22 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months.

Does SONIC sell franchises?

With an adaptable model, industry-leading technology and pent-up demand in markets nationwide, SONIC offers multi-unit franchise owners like you a path to limitless possibilities.

How much does it cost to build a SONIC?

The franchise fee is $45,000, with a total investment for a traditional SONIC ranging from $1.02 to $1.77 million (excluding land). The net worth of a partner can be used toward the total net worth/liquidity requirements. The term of a traditional SONIC franchise is 20 years, plus a 10-year renewal.

What is the royalty fee for SONIC?

5%$3,543,000Type of FeeAmountRoyalty Fee5% (maximum) of gross sales for traditional and 4% of gross sales for non-traditional.Brand Fee0.90% of gross sales.Advertising Cooperative Fee3.25% (minimum) of gross sales for traditional and 1.85% for non-traditional.Technology Fee/BTF Contribution0.25% of gross sales.9 more rows

What franchise is the most profitable?

Most Profitable FranchisesAnytime Fitness. Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. ... McDonald's. McDonald's franchise program is one of the most established in the fast food industry. ... UPS Store. ... Jersey Mike's Subs. ... Dunkin' ... Sport Clips. ... 7-Eleven. ... Papa John's.

How much does a McDonald's franchise cost?

McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.

What is the cost of a Starbucks franchise?

What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.

What is the cost of a Subway franchise?

How much is the franchisee fee? The initial franchise fee ranges from $10,000 - $15,000* (US dollars) depending on your country.

Are SONIC's individually owned?

It has its corporate headquarters in Oklahoma City; the headquarters building features a dine-in Sonic restaurant in an adjacent building. Prior to its acquisition by Inspire Brands, its stock traded on NASDAQ with the symbol SONC. Most restaurants are owned and operated by franchisees.

How much is a IHOP franchise?

The franchise fee to open an IHOP is $40,000 per restaurant for a multi-unit agreement, $50,000 for a single restaurant agreement. The total estimated investment ranges from $92,000 to $810,000. IHOP annual company-wide revenues exceed $2 billion.

How much does it cost to buy a Burger King franchise?

Burger King Franchise Cost /Initial Investment/ Burger King Franchise. The franchise fee is $50,000, and requires a total investment of anywhere between $316,100 and $2,660,600. Franchise agreements include an additional royalty fee of 4.5%. Franchise incomes vary by location.

Is Sonic the Hedgehog a good franchise?

Sonic the Hedgehog is Sega's flagship franchise and one of the bestselling video game franchises, selling over 140 million units by 2016 and grossing over $6 billion as of 2020. Series sales and free-to-play mobile game downloads totaled 1.14 billion as of 2020.

How many franchises does SONIC have?

12 Months Ending December 31, 2019Number of restaurantsMedian Gross SalesCompany Drive-Ins1691,257Franchise Drive-Ins3,1541,259Total of Company Drive-Ins and Franchise Drive-Ins3,3231,259Jul 13, 2022

Are SONIC's privately owned?

SONIC is owned by Atlanta's Inspire Brands, a privately held multi-brand restaurant franchise organization with a footprint approaching 10,000 units across its Arby's, Buffalo Wild Wings, SONIC Drive-In brands.

What company owns SONIC?

Inspire BrandsSonic Corporation, founded as Sonic Drive-In and more commonly known as Sonic (stylized as SONIC), or "The Drive-In," is an American drive-in fast food restaurant chain owned by Inspire Brands, the parent company of Arby's and Buffalo Wild Wings.

What is the cost of a Starbucks franchise?

What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.

How many locations does Sonic have?

SONIC ® is America’s drive-in, serving more than 3 million customers a day at over 3,500 locations nationwide. We’re an iconic brand with a rich heritage that encompasses 60 years; we believe in excellent customer service and developing core relationships with our customers and the communities in which we operate.

What is SONIC corporate office?

SONIC’s corporate office has a full support team and services available to franchisees, such as helpful demographic data and in-depth site analytics, to make the entire site selection and construction process as smooth and profitable as possible for franchisees.

How long does it take to get a SONIC site secured?

The term of a traditional SONIC franchise is 20 years, plus a 10-year renewal. It typically takes six to eight months to get a SONIC site secured.

Background

When it comes to quick service restaurants (QSRs), the competition is stiff. It is a billion dollar industry that has brands like McDonald's, Burger King, Wendy's, Chic-fil-A, and more saturating the industry with options to get customers in stores and driving through the drive thru.

Support and Training Offered By SONIC

In terms of support and training, franchisees can expect a 12 week training program that is broken down into 8 weeks worth of restaurant training, 3 weeks at a new store opening and a week of classroom training. Additionally, general managers are certified at a certified training store.

Franchises Similar to SONIC

The International Franchise Professionals Group (IFPG) is an internationally recognized membership-based franchise organization. IFPG Franchise Consultants guide aspiring business owners through the process of identifying and investing in franchise businesses. The IFPG represents more than 550 franchises.

Where is Sonic located?

The drive-in restaurant experienced success as soon as it opened, and right after, Smith Sr. brought in the franchise’s new partner – Charlie Pappe. The partners decided to begin franchising in 1959, in order to continue expanding Sonic Drive-In’s business model of selling unique hot dogs, burgers, chicken sandwiches, tater tots, onion rings and breakfast items to its customers. 67 years later, Sonic now has over 3,400 restaurants located across 46 U.S. States. The company is currently headquartered in Oklahoma City and is led by its Chief Executive Officer, J. Clifford Hudson, who was been with the company since April 1995.

Is the Sonic Franchise Profit Worth the Franchise Cost?

To assign a valuation multiple for Sonic franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the broader franchise industry as well as selling price multiples for larger systems like Burger King where more transaction data is available.

How much does a Sonic franchise cost?

Sonic offers two kinds of the franchise: the traditional and non-traditional. Traditional Sonic franchise cost ranges from $1,023,000 to $1,765,000.

How much does it cost to start a Sonic business?

Non-traditional Sonic franchise cost ranges from $443,500 to $1,201,500. This cost covers the real estate rent, equipment, inventory, and franchise fee. Both traditional and non-traditional Sonic franchise cost offers training as well as travel and living expenses while training with them.

How much royalty does Sonic charge?

The Sonic franchise has a 5% royalty fees on the other fees that you need to pay . Royalty fees from Sonic franchise are collected from your gross sales. These fees are the payment for using the Sonic brand as well as the advertising and other support that the mother company gives in your franchise company.

What is included in Sonic franchise?

Make sure to check the things that are included in your initial investment. In Sonic franchise even in a lower cost franchise the security deposit, impact fees for utilities, utility deposit, business licenses, and other prepaid expenses is included in your initial investment. The real estate rent and equipment are also part of the initial investment.

How many cars can a Sonic restaurant cater?

A traditional Sonic restaurant can cater 16 to 24 cars in their parking space.

How much land does Sonic need?

The average land mass needed to construct a Sonic building you will need 2/3 to 1 commercial acre in order to put up a building that will be used for the business. Moreover, the area varies depending on the franchise that you have purchased.

How many Sonic drive ins are there?

Sonic is America’s largest drive-in chain. They have 3,500 drive-in locations nationwide, in which almost 90% is franchised. They have been in franchising business for 58 years. Sonic has been rapidly expanding over the years and have available ideal locations in 50 states.

How much does it cost to become a SONIC?

What does it take to become a SONIC franchisee? The franchise fee is $45,000, with a total investment for a traditional SONIC ranging from $1.02 to $1.77 million (excluding land). The net worth of a partner can be used toward the total net worth/liquidity requirements. The term of a traditional SONIC franchise is 20 years, plus a 10-year renewal.

Is it a good time to own a Sonic franchise?

Increasing revenue, balanced dayparts and open territory make it a great time to own a SONIC franchise.

Is there a better time to become a Sonic franchisee?

There has never been a better time to become a SONIC franchisee. Leadership from a best-in-class franchise support team, a diverse menu that maximizes all five dayparts like no other QSR in the industry and the marketing muscle of the wildly successful Two Guys national campaign have positioned us as a brand with remarkable momentum. SONIC franchise owners saw average gross sales-by-store increase from $1,072,000 in 2012 to $1,246,000 in 2015, with more than 23 percent of our stores exceeding $1.5 million in gross sales in fiscal year 2015.

When did Sonic start?

Sonic first opened in 1953 as Top Hat Drive-In in Shawnee, Oklahoma, with Troy Smith Sr. at the helm. He later partnered with Charlie Pappe and they began franchising in 1959 under the Sonic Drive-In name. Sonic's car-hops deliver burger, hot dogs, chicken sandwiches, tater tots, onion rings, fries, drinks, desserts and breakfast to customers.

What is franchise fee?

What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor.

What is royalty fee for franchise?

This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.

How long does a franchise last?

Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease.

What is net worth?

What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.

What is a 0.9% fee?

0.9%. Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide.

How many locations does Sonic have?

Founded over 60 years ago, SONIC is one of the nation’s most recognized brands, with more than 3,500 locations and millions of fans across the country.

Is Sonic a drive in?

SONIC®, America’s Favorite Drive-In, is growing in markets across the U.S. and we want yours to be next. Hop in the driver’s seat with a SONIC franchise of your own today.

Is there a sweeter time to franchise with Sonic Drive-In?

We’re glad you’ve reached out to us! There’s never been a sweeter time to franchise with SONIC Drive-In. Here’s what you can expect next in the process.

Is SONIC a QSR?

SONIC is as much a technology company today as it is a leading QSR brand. From our interactive menu boards, to our POS system, mobile apps and online delivery platforms, SONIC is a high tech business. Learn More.