Sonic Franchise Costs, Fees & FDD

Year Business Began: 1953

Franchising Since: 1959

Headquarters: Atlanta, Georgia

Estimated Number of Units: 3,520

Franchise Description: Sonic Franchising LLC is the franchisor. The franchisor is a subsidiary of Inspire Brands, Inc. The franchisor licenses the operation of Sonic restaurants. Sonic restaurants a variety of specialty drinks (such as cherry limeades and slushes), ice cream desserts, cheeseburgers, chicken entrees, hot dogs, onion rings and tater tots and breakfast items. The franchisor offers franchises to operate a Sonic Restaurant at either a traditional drive-in location, a non-drive-in location, or at a non-traditional location.

• A traditional Sonic Drive-In typically is a free-standing, 1-story building with surrounding parking stalls covered by canopies, providing in-car service for approximately 8 to 24 cars. Most Sonic Drive-Ins also incorporate drive-thru service and patio seating and some may provide an enclosed patio or indoor seating.
• A non-drive-in location is any permanent or temporary sonic restaurant facility (other than a non-traditional location) that is not a free-standing building with canopies devoted solely to the sonic restaurant and ordering capability accessible to the general public by automobile from public thoroughfares.
• A non-traditional location is any permanent or temporary food service facility that operates (1) under one or more of the proprietary marks and all or part of the Sonic system, and (2) at locations that do not feature unlimited and unrestricted access to the general public by automobile from public thoroughfares.

Training Overview: The franchise principal and one manager of the restaurant must attend and successfully complete the General Manager Training Program to the franchisor’s satisfaction before the restaurant’s opening. In this training the franchisor will provide on-the-job training for each position in the restaurant so that franchisees can learn how to operate the restaurant and train their staff. Training currently consists of 336 hours of on-the-job training at a technical training Sonic restaurant that the franchisor selects at various locations throughout the U.S. Further, at least one full-time manager working in the restaurant must complete the general manager leadership class training to the franchisor’s satisfaction. For a franchisee’s (or affiliate’s) first three Sonic restaurants, as part of the pre-opening training, the franchisee will send at least one general manger, one to three assistant managers, and one to three shift managers from the restaurant (however the franchisor may make allowances for the number of people to attend based on the size and expected volume of the restaurant) to another certified Sonic restaurant that the franchisor approves (which may be a company drive-in or a franchise drive-In) for additional certification training. Each of the restaurant’s personnel who has shift responsibility or employee oversight responsibility must be certified in ServSafe or in another comparable, nationally recognized food safety training and certification program the franchisor approves. In addition, all Sonic Drive-In employees must complete the Sonic Safe Training Program. The franchisor also provides additional self-directed ongoing training programs, online training and webinars for management personnel, including station courses and the additional manager leadership classes.

Territory Granted: With certain exceptions, the franchisor will not own or operate a Sonic restaurant and will not franchise to any other person to own or operate a Sonic Restaurant (other than a Sonic restaurant licensed before the date of the franchise agreement), within the restaurant’s protected area. The “protected area” is defined on the license agreement’s effective date and is a radius extending 0.75 to 3 miles depending on the population of the site’s MSA. The franchisor determines the population of an MSA on and after the license agreement’s effective date based on the latest published federal census (or other data the franchisor selects) and may reduce the protected area based on this data upon notice to the franchisee. If franchisees operate their restaurant at a non-traditional location, then the franchisor and the franchisee will sign the non-trad rider. Under the non-trad rider franchisees receive no protected area and no territorial rights or protection.

Obligations and Restrictions: Franchisees (if the franchisee is an individual) or the principal (if the franchisee is an entity) must diligently and fully exploit their rights in the Franchise Agreement by personally devoting best efforts to and personally participating in the operation of the restaurant and devoting sufficient time and effort to the management of the restaurant. The restaurant must at all times have at least one individual working full-time at the restaurant who has completed the then current training program. Franchisees must serve all menu items that the franchisor periodically requires, serve no items which are not listed in the operations manual or which the franchisor does not otherwise authorize and approve, and display and offer only the menu that the franchisor then approves.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years (or the lesser of 10 years or the term of the facility contract for non-traditional locations). Renewal is for two additional 10-year terms if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guaranty a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial License Fee	$45,000	$45,000
Training, Travel and Living Expenses while Training	$8,200	$93,600
Franchisee Certified Training Team Expenses	$15,200	$42,500
Prepaid Expenses	$2,000	$125,000
Real Property/Occupancy Charge	Variable
Building Costs	$250,000	$1,100,000
Site Work	$50,000	$1,000,000
Restaurant Equipment	$175,000	$260,000
Point-of-Sale System, Digital Menu Housings and Other Technology	$70,000	$160,000
External Signage	$30,000	$150,000
Beginning Inventory	$10,000	$50,000
Advertising Funds	$2,000	$5,000
Insurance Premiums	$10,000	$20,000
Payroll	$26,800	$94,800
Additional Funds (3 months)	$5,000	$25,000
ESTIMATED TOTAL (excluding freestanding real estate costs)	$699,200	$3,140,900

 
Other Fees

Type of Fee	Amount
Royalty Fee	5% of gross sales.
Brand Fee/ Sonic Brand Fund Contribution	0.90% of gross sales.
Advertising Cooperative Fee/ System Marketing Fund Contribution	3.25% (minimum) of gross sales for traditional and 1.625% (minimum) for non-traditional locations and non-drive-in locations that are c-stores.
Technology Fee/Brand Technology Fund Contribution	0.25% of gross sales.
Additional Training Fee	Currently $200 per person for training new personnel, $1,000 per occurrence for failed inspections.
Transfer Fee	$1,000 for each non-control transfer, immediate family transfer, or transfer to a wholly-owned entity, 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 amount overdue.
Renewal Fee	$15,000
Insurance	If the franchisee fails to obtain insurance, the franchisor may obtain coverage at the franchisee’s expense.
Management Fee	3% of gross sales.
Indemnification	Will vary with the circumstances.
Enforcement Costs	Will vary with the circumstances.

The above information has been compiled from the FDD of Sonic. Year of FDD: 2025.

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