Well, according to industry reports, the average Sonic does $1,345,000 in sales and 11% EBITDA (profit) margins. Therefore, you could expect to make nearly $148,000 per Sonic location before paying for above store expenses.
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 make a lot of money?
According to data by Statista from 2009 to 2018, Sonic Drive-In's net income is $71.21 million. You can expect that these numbers have changed and grown by now especially with their revenue growth for the year 2020. Other industry data reports franchise owners saw average gross sales in 2015 to be $1,246,000.
How much do franchise owners get paid?
The largest fee is made upon initial buy-in of the franchise and requires a large sum of upfront cash. Then, most franchisors will collect royalty fees in percent or fixed form. Percent fees are based on total gross sales and are usually between 5 – 9%.
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 is it to open a Sonic?
How much does it cost to open a traditional SONIC? The license fee for a traditional SONIC restaurant is $45,000, with a total investment ranging from $1,242,200 to $3,537,700 (excluding land).
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
Is owning a franchise a full time job?
Buying a franchise doesn't have to mean making a full-time commitment. Believe it or not, there are many franchises that can be run on a part-time basis, especially when you first start out.
How often do franchises fail?
A five-year study by the franchise consulting firm FranNet reported that 92 percent of their franchise placements were still in business after two years and 85 percent after five years. Because yes, sometimes franchise businesses can rise and fall like independently owned companies.
What is the most profitable franchise to own in 2022?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
Can you get rich owning a franchise?
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.
How much does a Dunkin Donuts owner make?
The average Dunkin' franchise is getting around $620,000 to $1.3 million in sales per year. This results in the average Dunkin' franchise owner to have an annual salary of around $124,000.
How much is 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.
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.
Who owns SONIC now?
Inspire BrandsSonic Drive-In / Parent organizationSonic 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.
Are Sonics franchised?
Franchise System Sonic Drive-In has over 3,500 locations nationwide, almost 90% of which are franchised. The franchise offering comes in two different formats: traditional and non-traditional. Traditional franchises come with a 20-year term and a 10-year renewal opportunity with a $45,000 franchise fee requirement.
How much does a Subway franchise cost?
The initial franchise fee ranges from $10,000 - $15,000* (US dollars) depending on your country.
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.
What is a Sonic franchise?
SONIC franchisees are anything but average. They’re business-savvy leaders with genuine passion for our brand and restaurant-specific experience. Whether they grew up eating our famous coneys or worked as a car hop when they were young, they know better than anyone what it means to be America’s favorite drive-in.
How much does it cost to license a SONIC restaurant?
The license fee for a traditional SONIC restaurant is $45,000, with a total investment ranging from $1,242,200 to $3,537,700 (excluding land). The license fee for a non-traditional S ONIC restaurant is $22,500, with a total investment ranging from $361,900 to $978,700 (excluding land).
How long is the Sonic training program?
SONIC offers a 12-week training program that includes 8 weeks of restaurant training, 3 weeks at new store openings and 1 week of classroom training. Prior to your grand opening, your general manager must be in place and fully trained. All SONIC general managers are certified at a certified training store.
How long is a SONIC license?
SONIC offers both a traditional and non-traditional license agreements. The term of a traditional license is 20 years with a 10-year renewal option. The term of a non-traditional license agreement ranges from 5 to 10 years, plus a 5-year renewal option.
How much liquid capital do I need to open a drive in?
Candidates will need $500,000 in liquid capital and a minimum net worth of $1,000,000 to open 1 – 2 units. Keep in mind, the SONIC Drive-In franchise is primarily a multi-unit opportunity. Minimum financial qualifications for additional units will increase.
How long does it take to open a Sonic drive in?
It typically takes six to eight months to secure a site. Once site selection is complete and construction and build-out begin, it takes an average of 90 days to open your SONIC Drive-In franchise.
Does SONIC offer direct financing?
SONIC does not offer direct or indirect financing and will not guarantee your note, lease or other obligation. SONIC maintains a preferred list of lenders. We are listed on the Franchise Registry list as an approved SBA-Franchise.
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.
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.
How Much Money does a Sonic Franchisee Make?
So you have dropped maybe $1,500,000 on a new Sonic location but you are wondering how much money you will make? What should you expect? Well, according to industry reports, the average Sonic does $1,345,000 in sales and 11% EBITDA (profit) margins. Therefore, you could expect to make nearly $148,000 per Sonic location before paying for above store expenses.
How much does it cost to open a Sonic pizza?
The initial franchise fee to open a Sonic store is given as a range between $361,900 and $3,537,700.
Why was the Sonic restaurant renamed?
Eventually he renamed the spot Sonic, with the slogan “Service with the Speed of Sound.”
What are the ongoing expenses of Sonic?
At most franchises, the major ongoing expenses include royalties and advertising fees. These usually amount to somewhere around 10% of sales. At Sonic, the structure is the same. Here is how it breaks down for Sonic:
Who owns Sonic?
Today, Sonic continues to be a heavily franchised brand owned by Inspire Brands along with other concepts like Arby’s, Buffalo Wild Wings and Jimmy John’s.
Is Sonic a good investment?
Is Sonic a good investment? Well, if you make $150,000 and you invest $1,500,000 then that is merely a 10% return on your capital . From restaurant investments, that is towards the lower end but not uncommon for Burger concepts. Obviously one way to try to improve this is to try and build a store at the lower end of the estimated cost range. This will drive up your expected return, but you should also consult with a financial adviser to see if it is a good investment for you.
How much does a franchisee make?
In the case of our food and beverage franchisee data, the median annual income is around $70,000, and if we include startup franchisees (those in business for less than two years) the median falls to around $50,000. Only 34 percent of all food franchise owners earned more than $100,000 last year – and many earned much less.
How much do food franchise owners make?
Our research shows that 37 percent of food franchise owners earn less than $50,000 per year, and just 16 percent – the “top performers” – earn more than $200,000 per year. The average annual income reported by all food and beverage operators that we surveyed is $120,000 for businesses open at least two years. Not bad, until you factor in the long hours and high initial investment that come with many food businesses. The good news is that our top food franchises report average earnings 15 to 20 percent higher than their competitors.
How to start a franchise business?
Here are some things to keep in mind when researching franchise opportunities: 1 Talk with as many franchisees as you can and confirm that your business projections and income expectations are realistic. 2 Understand that most business owners can’t take any money out of the business for the first few years during the startup phase, and it may take you even longer to start paying yourself a salary from your new business. 3 Plan accordingly and try to have alternative sources of income (i.e. a spouse’s salary) to live off of while your new business is getting off the ground.
What is the item 19 in a franchise?
Many franchisors have started including an Item 19—the “financial performance representation ”—as part of their F.D.D. The latest trend in Item 19s is providing both gross and net numbers in order to really give candidates and franchisees a better idea of potential profitability, not just top-line revenue. Franchisors told us they have become much more frank in their discussions with franchisees about what exactly they’ll need for capital in order to be successful.
Do people in franchising do well?
It’s true that some people in franchising – we’ll call them the top performers – have done very well for themselves. These are most often the people that end up owning multiple franchise locations and have built a successful team of people around them. This group represents only about 20 percent of the franchisee universe, yet it is their success stories that attract thousands of people to invest in a franchise every year.
Is it important to have a well capitalized franchise?
The importance of a new franchisee being well-capitalized cannot be overstated. Prospective franchisees should carefully review a brand’s Franchise Disclosure Document (F.D.D.) and ask current franchisees how much they recommend a new franchisee have in the bank before opening.
How much does a cleaning franchise cost?
This model is not to be confused with buying cleaning contracts which is a totally different model with a much smaller investment. Also not to be confused with a MASTER cleaning franchise which is more about selling franchise contracts. A master cleaning franchise is a great business for people with sales experience, and the average gross for a cleaning master franchise is $2,800,000, top earners at $5,800,000 . A master cleaning franchise will have an investment range of between $240k and $400k.
How much do food franchises make?
They assume food franchise owners are the biggest moneymakers, but according to a Franchise Business Review report, 51.5 percent of food franchises earn profits of less than $50,000 a year and only about 7 percent of food franchises have profits over $250,000.
Why do we call Franchise City?
Smart investors call Franchise City because we have all the data on file. But more importantly, not everyone has the skills or background to successfully operate a senior care or staffing franchise. If you are a bad fit, even with the top franchises, you will not make money. A Taco Bell will have people walking in and buying a taco, but it doesn't really matter if you have no business skills, or are not a good communicator. With senior care, staffing and service-based businesses in general the owner is driving that business forward and they need to have specific skills in order to succeed. We provide a detailed skills assessment to all our clients as part of our free service.
What is the highest grossing franchise on QSR50?
The single highest grossing food franchise on the QSR50 is Chick-fil-A. An average Chick-fil-A generates 4.16 million dollars annually and your investment is only $10,000. But keep in mind that Chick-fil-A has a very different franchise model than other franchises and owners do not receive a traditional revenue split, or even ownership of the store. You'll earn a solid six figures, have limited risk, be part of a solid organization with traditional values but you do not own the store or gain any equity.
How much does it cost to buy a McDonald's?
Buying a Mcdonald's will cost you between $1,263,000 to $2,235,000 not including your real estate. Many people think these numbers include real estate, they do not.
Do franchises track net revenue?
Franchises collect royalties on gross earnings, so they typically don't track the net. We help our clients gather the net numbers to make a more informed decision.
Do food franchises have 20% margins?
There are some food franchises that do have 20% margins or higher, but you have to know where to look. ( Contact Franchise City for details) Multi unit owners can do very well but a single unit, unless you have a great location, is not going to generate a lot of money. Let's look at other industries to compare, ...