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.
Where is Sonic located?
Is the Sonic Franchise Profit Worth the Franchise Cost?
How much does a SONIC owner make a year?
Average Sonic Drive-In Owner Operator Driver yearly pay in the United States is approximately $68,269, which is 66% below the national average.
Is SONIC franchise profitable?
If you owned multiple Sonic franchises, you do have the ability to make more of your money back. Franchise owners with over $5 million in sales have a median multiple of 0.86 So, if you had 10 franchises this would be $13.6 million in sales. And you could sell your chain of restaurants for about $11.7 million.
How much money did the SONIC franchise make?
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.
What is the most profitable franchise?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
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 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 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.
How much is it to buy a Taco Bell franchise?
Costs overview Franchising fee: It costs between $25,000 and close to $50,000 for the initial franchise fee. This, too, will vary depending on the details of your specific Taco Bell franchise. Net worth: The current net-worth requirement is around $1.5 million worth of assets.
How much does it cost to build a Sonic Drive-In?
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.
Do franchise owners make money?
Franchise Business Review found that the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners make more than $250,000 annually, and 51% earn less than $50,000. Legally, franchisors cannot give income amounts or forecasts of future income.
How much does a Dunkin Donuts owner make?
Average Sales / Revenue per Year 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.
Is a franchise a good investment?
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
What is Sonics profit margin?
Sonic Automotive net profit margin as of June 30, 2022 is 2.76%.
How much does it cost to build a Sonic Drive-In?
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.
How much is Sonic the Hedgehog worth?
What makes a copy of Sonic the Hedgehog for Sega Genesis worth $240,000? After all, 15 million copies were made. Video Game Specialist Brett Weiss explains it's a combination of popular demand and rarity.
Who owns the Sonic franchise?
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.
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.
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 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.
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.
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 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.
Do you have to reside in the market in which you are operating?
Yes. Either you or the operating partner must reside in the market in which you are operating.
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.
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:
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.”
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.
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 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.
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.
