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We extract fees, Item 19 financials, franchisee contacts, SBA default rates, litigation, and outlet data from every FDD — so you can compare brands in minutes, not months. Used by multi-unit operators, consultants, and franchise development teams.

SONIC DRIVE-IN

SONIC DRIVE-IN

Sonic Drive-In franchises quick-service drive-in restaurants offering made-to-order cheeseburgers, chicken entrees, hot dogs, onion rings, tater tots, breakfast items, specialty drinks like cherry limeades and slushes, and ice cream desserts such as SONIC Blast treats. The business model includes Traditional Drive-Ins with carhop service, Drive-Thru Only, Non-Drive-In (e.g., convenience stores), and Non-Traditional locations, plus development agreements for multiple units and multi-brand co-locations with brands like Arby’s or Dunkin’. They target frequent fast-food consumers in a highly competitive quick-service restaurant market.

3,441locations
$1676K–$3141K
Since 1974
Food & BeverageAtlanta, GAInspire Brandswww.sonicdrivein.comDisclaimer

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Franchise Costs

Franchise Fee
$15,000
Initial Investment
$1,676,000 – $3,140,900
Royalty Rate
5.00%
Brand Fund
0.90%

5% royalty + 0.9% brand fee + 3.25% (minimum) advertising cooperative fee + 0.25% technology fee.

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$1,587,024
Median Gross Revenue
$1,500,713
Top Quartile Revenue
$2,398,950
Bottom Quartile Revenue
$935,705

Data Based On: Data based on 3,086 franchised Sonic Restaurants operating for the full 2024 fiscal year, excluding new openings, closures, non-traditional, multi-brand, and company-owned units.

* All revenue figures were extracted directly from the 'Average Unit Volume for 2024 Franchised Traditional Restaurants' and 'Statistics for 2024 Franchised Traditional Restaurants' tables. The document explicitly states in point (5) on page 5 that financial performance representations do not reflect costs of sales, operating expenses, net income, or profit; hence, average_net_income, average_net_profit, average_ebitda, ebitda_margin_pct, best_guess_profit_low, and best_guess_profit_high are set to null.

Extracted Item 19 Section

Avg. Revenue: $1,587,024

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SONIC DRIVE-IN Franchise Analysis

Sonic Drive-In's carhop charm fuels a unique edge in fast food, but Item 19 revenue disclosures and SBA loan records uncover a high-stakes operation amid notable franchisee flux. With terminations and transfers lighting up the dashboard, plus a fresh litigation note, the system's pulse feels erratic. Does this signal distress or just the churn of a maturing brand worth $15,000 to enter?

Item 7 lays out the steep entry: $1,676,000 to $3,140,900 total investment, including a $15,000 franchise fee, driven by drive-in builds or non-traditional setups. Ongoing fees hit 5% royalty, 0.9% brand fund, plus 3.25% minimum ad co-op and 0.25% tech—standard for QSR but adding up on high volumes. Item 19 shines here: average gross revenue $1,587,024, median $1,500,713 across traditional and drive-thru units, suggesting solid top-line potential if you nail location and ops in this cutthroat market.

System health mixes green and yellow flags—3,441 franchised vs. 20 corporate locations, but a -2% contraction from 3,194 (2023) to 3,144 (2024) units, with 80 terminations, 14 non-renewals, and a whopping 334 transfers signaling heavy turnover. Projected 23 new units offers mild optimism, backed by 97 SBA loans averaging $1,162,942 and just 1.0% default rate, far below industry norms. A franchisor suit over unpaid fees hints at cash flow pressures for some, so high revenues tempt but vet resale activity closely before diving into multi-unit deals.

Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.

How SONIC DRIVE-IN Compares

Key Insights

  • Higher investment than 92% of Fast Food franchises
  • Top 10 largest franchise system in Fast Food
FranchiseInvestmentFeeRoyaltyLocations
SONIC DRIVE-IN
Current
$1.7M – $3.1M$15K5.0%3,441
MCDONALD'S$1.5M – $2.6M$45KN/A12,772
LITTLE CAESARS$377K – $1.8M$20K6.0%3,788
AFC$45K – $151K$6K8.0%3,572
KFC (NON-TRADITIONAL)$1.2M – $4.2M$45KN/A3,404
CHICK-FIL-A License Program$586K – $3.4MN/A10.0%2,795
Fast Food Average
133 franchises
$597K – $1.6M$35K6.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 133 Fast Food franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1TX
888
2AR
194
3OK
191
4MO
183
5TN
166
6LA
140
7KS
131
8MS
122
9FL
97
10AZ
87
11CA
81
12SC
73
13NC
73
14NM
72
15AL
72

+32 more states

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SBA Loan History


Historical SBA 7(a) loan data for SONIC DRIVE-IN franchisees (20102025)

Total Loans
97
Average Loan
$1,162,942
Total Volume
$112.8M
Default Rate
1.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

97 SBA loans on record

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Franchisee Contacts

3,233 franchisee contacts on file from official FDD filings.

3,233 Contacts Available

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Due Diligence


Litigation (Item 3)

Franchisee Cases1

Franchisor-initiated suit to collect unpaid fees from a franchisee.

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
80
Non-Renewals
14
Reacquired
N/A
Ceased Ops
334
Transfers
334
Sold to Franchisees
10
Projected New
23

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Frequently Asked Questions

The total initial investment to open a SONIC DRIVE-IN franchise ranges from $1,676,000 to $3,140,900. This includes a franchise fee of $15,000. Ongoing royalty fees are 5.0% of gross sales.