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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.
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Franchise Costs
5% royalty + 0.9% brand fee + 3.25% (minimum) advertising cooperative fee + 0.25% technology fee.
Financial Performance
Item 19 Financial Performance
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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Unlock financial performance dataSONIC 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
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
SONIC DRIVE-IN Current | $1.7M – $3.1M | $15K | 5.0% | 3,441 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 8.0% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| CHICK-FIL-A License Program | $586K – $3.4M | N/A | 10.0% | 2,795 |
Fast Food Average 133 franchises | $597K – $1.6M | $35K | 6.1% | – |
* 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
+32 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for SONIC DRIVE-IN franchisees (2010 – 2025)
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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Unlock SBA loan historyFranchisee Contacts
3,233 franchisee contacts on file from official FDD filings.
3,233 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Franchisor-initiated suit to collect unpaid fees from a franchisee.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently 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.
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