How much is Sonic Restraunt Franchise Cost & profit margin ?
“Do you want to start a food restaurant business, but don’t know how to start? Or confused about whether I should establish my own brand or work with an existing brand? If your answer is “Yes” then starting a business with an already existing famous brand always has the advantage. Sonic Franchising LLC, is an old and famous band in restaurants, food and drinks, and related items. Sonic offers franchises to eligible and interested candidates at the most reasonable amount.”
About Sonic Restraunt Franchise
Sonic Franchise LLC was founded by Troy Smith in 1953. Its head office is located in Atlanta, Georgia. Sonic franchise drive-in outlets focus on a unique menu of quality, made-to-order food products, and innovative technology. Sonic Franchising LLC licenses the operation of Sonic restaurants, which feature a variety of items-specialty drinks, ice cream desserts, cheeseburgers, chicken entrees, hot dogs, and more.
The SONIC franchise originated from a humble background, and it has become one of the most instantly recognizable brands in the nation. At present, the company has more than 3,500 franchise outlets in 46 States locations from coast to coast in the USA. The company owns 271 outlets out of 3500 total. Sonic is a well-known brand, in the food and restaurant industries, supported by millions of fans who make SONIC a part of their daily lives.
In Spring 2020, The company unveiled a new SONIC new brand identity Sonic Drive-in with pops of red, blue, and a bit of yellow. The updated look provides a fun and inviting space for guests to enjoy a moment of carefree bliss in their daily routine
The current president of Sonic Franchise LLC, is Claudia San Pedro. She helped with the implementation of a complex and costly new point-of-sale system across the chain’s 3,500 restaurants. She is ensuring that SONIC remains the most forward-looking brand in the booming QSR industry.
How much a Sonic franchise owner makes a year ?
Sonic Franchise is one of the well-known brands in the food and restaurant industries, supported by millions of fans who make SONIC a part of their daily lives. Since its inception, the company has been gradually growing. In 2020. The Company's net profit was $92 million. The total revenue collection amount was $269 million. The Company's net income increased by 250% from 2019 to 2020. We can see the increase through an increase in revenues and decreasing costs from 2020 to 2021.
Sonic Restraunt Franchise models
Sonic Franchise LLC offers the following models to franchisees
Sonic Traditional Drive-In Franchise
The sonic drive-in model is the most popular model of the franchisor. In the Drive-In Model, the store layout typically features 16 to 24 drive-in stalls. It takes approximately ¾ acre of space to build up. The seating arrangement is the Patio model type.
Sonic Indoor Dining Model
This model is suited for colder weather. It is an indoor dining room designed model. This model also offers patio seating, as well as a drive-thru.
Sonic Plaza Travel Model
This model typically does not include the familiar parking stalls and canopies found in the traditional SONIC Drive-In.
Sonic Restraunt Conversion Model
Under this model, franchisees convert existing restaurant facilities into a SONIC restaurant in the most cost-effective way possible, utilizing the existing kitchen, dining area, and patron restroom facilities.
Sonic Counter Service Model
The counter-service model is best-suited for airports and busy malls and campus food courts where foot traffic is high.
Read more : How to get Dutch Bros Fanchise ?
Sonic Franchise investment amount and franchise fees
The estimated investment amount required for the operation of a Sonic Franchise ranges from $1,242,200 to $3,537,700.
Sonic Franchise Fee is $45,000.
Sonic Franchise Investment Details:
Following are the investment details of the Sonic Franchise :
| Estimated Initial investment detail | ||
| Name of Fee | Low | High |
| Initial License Fee | $45,000 | $45,000 |
| Training, Travel, and Living Expenses while Training | $5,000 | $53,500 |
| Franchisee Certified Training Team Expenses | $48,000 | $72,000 |
| Prepaid Expenses | $2,000 | $250,000 |
| Real Property/Occupancy Charge | Variable | Variable |
| Building Costs | $800,000 | $1,100,000 |
| Site Work | $450,000 | $1,200,000 |
| Indoor Seating | $0 | $0 |
| Restaurant Equipment | $175,000 | $260,000 |
| Real Estate Rent or Building and Site Work | $15,000 | $2,300,000 |
| Restaurant Equipment | $120,000 | $260,000 |
| Point-of-Sale System, Digital Menu Housings and Other Technology | $100,000 | $175,000 |
| External Signage | $50,000 | $150,000 |
| Beginning Inventory | $20,000 | $50,000 |
| Insurance Premiums | $10,000 | $20,000 |
| Payroll | $56,000 | $137,500 |
| Additional Funds (3 months) | $5,000 | $25,000 |
| ESTIMATED TOTAL | $1,768,000 | $3,543,000 |
Sonic Franchise Ongoing Fee
There are certain fees that are charged regularly or on certain intervals. Their list is given below.
| Name of Fee | Amount |
| Royalty Fee | 5% for traditional and 4% for a non-traditional model of sales amount. |
| Brand Fee | 0.90% of gross sales. |
| Advertising Cooperative Fee | 3.25% of gross sales for traditional and 1.85% for non-traditional. |
| Technology Fee/BTF Contribution | 0.25% of gross sales. |
| Additional Training Fee | $500 per person. |
| Transfer Fee | $1,000 for each non-control transfer, and $3,000 for other transfers. |
| Audit Fee, Interest, and Surcharge | Unpaid amounts, interest, plus 10% of unpaid amounts. |
| Late Charge | 1.75% per month of overdue amount |
| Renewal Fee | 20% of current license fee amount |
| Insurance | Insurance Amount. |
| Management Fee | 3% of gross sales. |
| Indemnification | variable |
| Enforcement Costs | variable |
Sonic Franchise Support : Sonic Franchise LLC provides the following support to franchisees.
- Site Searching
- Architecture designing and engineering support
- Operations and Training
- Training and certification courses online such as operations, food safety, customer service, and management.
- Technology support like the -Integrated POS system simplifies inventory, human resources, and Superior scheduling systems.
- Additional training support like-National purchasing programs, Product innovations, and Staff selection training
Sonic Restraunt Franchise Procedure to Apply
Sonic prefers experienced candidates in the food and beverage industry Or who have experience in running such a big utility. Interested candidates should take the following steps to apply for Sonic Franchise.
- Visit if official website: www.sonicfranchising.com
- Click on the Franchise option
- Enter your details and submit.
- An authorized member from the franchise team will respond and arrange a one-to-one meeting.
- One-to-one meeting
- Application of Franchise form
- Review and background verification
- Signing of FDD
- Site search
- Construction and setting up equipment
- Training of staff and management
- Final signing of agreement
- Opening of a franchise restaurant.
Conclusion : Sonic Franchise Review & Owners opinion
Sonic has a long successful background. It has been almost 8 decades since its foundation, it is consistently expanding. Currently, Sonic has more than 3,500 restaurants in 46 states of the USA.
Sonic is part of the Inspire Brands family of restaurants which includes Arby's, Buffalo Wild Wings, Rusty Taco, and Jimmy John's. Sonic provides combined support of the Inspire Brand family to franchisees. The company supports in all areas of the business from site searching to construction, training of staff and management, marketing and advertising, supply chain, 3rd party delivery vendors arrangements, etc. ensuring the success of the franchisee.