Sonic Drive-In Franchise Prices, Charges, Revenues, Income (2023 Overview)

On this unique Franchise Chatter FDD Speak publish, you’ll study the next:

Part I – Estimated preliminary funding (franchise prices) for a Sonic Drive-In franchise, primarily based on Merchandise 7 of the corporate’s 2023 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising payment for a Sonic Drive-In franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2023 FDD

Part III – Variety of franchised and company-owned Sonic Drive-In shops firstly of the 12 months and the top of the 12 months for 2020, 2021, and 2022, primarily based on Merchandise 20 of the corporate’s 2023 FDD

Part IV – Information updates on the Sonic Drive-In franchise alternative

Part V – Presentation and evaluation of Sonic Drive-In’s monetary efficiency representations (common revenues and/or earnings), primarily based on Merchandise 19 of the corporate’s 2023 FDD, together with info on the:

• 2018, 2019, 2020, 2021, and 2022 common product sales for the corporate Sonic Drive-Ins, franchise Sonic Drive-Ins, and all Sonic Drive-Ins (firm and franchise) that had been open and working for the whole 12 months

• 2022 common product sales for conventional firm Sonic Drive-Ins, conventional franchise Sonic Drive-Ins, and all conventional Sonic Drive-Ins (firm and franchise) that had been open and working for the whole 2022 fiscal 12 months

• 2022 common product sales for conventional Sonic Drive-Ins (firm and franchise) that had been open and working for the whole 2022 fiscal 12 months, by product sales stage (prime third, center third, and backside third)

• 2022 common product sales for conventional Sonic Drive-Ins (firm and franchise) that had been open and working for the whole 2022 fiscal 12 months, by geographic area (Midwest, Northeast, South, and West)

• 2022 common product sales for conventional franchise Sonic Drive-Ins at comfort retailer places that had been open and working for the whole 2022 fiscal 12 months, by product sales stage (prime third, center third, and backside third)

Part VI – Key ratios, comparables, computations, and analyses for the Sonic Drive-In franchise alternative (unique content material for Platinum subscribers)

Part I – Sonic Drive-In Franchise Prices

• Preliminary License Payment:  $45,000
• Journey and Residing Bills Throughout Coaching:  $8,200 to $93,600
• Franchisee Licensed Coaching Group Bills:  $15,200 to $42,500
• Pay as you go Bills:  $2,000 to $125,000
• Actual Property/Occupancy Cost:  variable
• Constructing Prices:  $800,000 to $1,100,000
• Web site Work:  $450,000 to $1,200,000
• Restaurant Tools:  $175,000 to $260,000
• Level-of-Sale System (“POS”), Digital Menu Housings (“POPS”), and Different Expertise:  $105,000 to $160,000
• Exterior Signage:  $50,000 to $150,000
• Starting Stock:  $20,000 to $50,000
• Promoting Funds:  $2,000 to $5,000
• Insurance coverage Premiums:  $10,000 to $20,000
• Payroll:  $26,800 to $94,800
• Further Funds (3 months):  $5,000 to $25,000
• Complete Estimated Sonic Drive-In Franchise Prices (excluding free-standing actual property prices):  $1,714,200 to $3,370,900

Part II – Sonic Drive-In’s Preliminary Franchise Payment, Royalty Payment, and Advertising Payment

• Preliminary License Payment:  $45,000
• Royalty Payment:  5% of Gross Gross sales
• Model Payment/Sonic Model Fund contribution:  0.90% of Gross Gross sales
• Promoting Cooperative Payment/System Advertising Fund contribution:  3.25% of Gross Gross sales for Conventional Eating places; 3.00% of Gross Gross sales for Non-Conventional Eating places

Part III – Variety of Franchised and Firm-Owned Sonic Drive-In Retailers

Franchised

2020

• Retailers on the Begin of the 12 months:  3,329
• Retailers on the Finish of the 12 months:  3,251
• Internet Change:  -78

2021

• Retailers on the Begin of the 12 months:  3,251
• Retailers on the Finish of the 12 months:  3,232
• Internet Change:  -19

2022

• Retailers on the Begin of the 12 months:  3,232
• Retailers on the Finish of the 12 months:  3,221
• Internet Change:  -11

Firm-Owned

2020

• Retailers on the Begin of the 12 months:  197
• Retailers on the Finish of the 12 months:  271
• Internet Change:  +74

2021

• Retailers on the Begin of the 12 months:  271
• Retailers on the Finish of the 12 months:  320
• Internet Change:  +49

2022

• Retailers on the Begin of the 12 months:  320
• Retailers on the Finish of the 12 months:  325
• Internet Change:  +5

Part IV – Information Updates on the Sonic Drive-In Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Income) for the Sonic Drive-In Franchise (Merchandise 19, 2023 FDD)

• This Merchandise 19 consists of monetary info from Sonic’s 2022 fiscal 12 months, which is the interval from January 3, 2022 till January 1, 2023; from Sonic’s 2021 fiscal 12 months, which is the interval from January 4, 2021 till January 2, 2022; from Sonic’s 2020 fiscal 12 months, which is the interval from December 30, 2019 till January 3, 2021; and from the 2018 and 2019 calendar years (from January 1 till December 31 of every 12 months).

• This Merchandise 19 incorporates the precise, historic common product sales of sure Sonic Eating places for Sonic’s 2022 fiscal 12 months, 2021 fiscal 12 months, 2020 fiscal 12 months, and the 2019 and 2018 calendar years. This Merchandise 19 additionally incorporates the precise, historic common product sales for sure Sonic Eating places for the 2022 fiscal 12 months by product sales stage, sort, and geographic area.

Varieties of Sonic Drive-Ins

• A typical “Conventional Sonic Drive-In” is a Sonic Drive-In the place a buyer parks in a coated drive-in house and orders by an intercom speaker system. A carhop then delivers the shopper’s meals on to the shopper’s car.

• Most Conventional Sonic Drive-Ins are freestanding buildings and embrace a drive-thru lane and a patio, and typically additionally an enclosed patio or indoor seating.

• Some Conventional Sonic Drive-Ins are positioned at comfort shops or journey plazas (“C-stores”).

• Conventional Drive-Ins are positioned throughout the nation and in a wide range of city, suburban, and rural places.

• Conventional Sonic Drive-Ins (apart from C-stores) with out inside seating usually vary in dimension from 1,100 to 1,700 sq. ft, together with stalls and drive via, though there are some atypical Conventional Sonic Drive-Ins whose dimension falls exterior this vary.

• Conventional Sonic Drive-Ins (apart from C-stores) with inside seating usually vary from 2,000 to 4,000 sq. ft.

• The scale of Conventional Sonic Drive-Ins which are C-store places varies with the kind of location and ranges from 1,000 to three,000 sq. ft.

• A “Non-Conventional Sonic” is a Sonic Restaurant operated at a location akin to a meals court docket at a soccer stadium, mall, navy base, or different non-traditional location.

• Non-Conventional Sonics usually vary in dimension from 800 to 1,500 sq. ft, though there are some atypical Non-Conventional Sonics whose dimension falls exterior this vary.

• “Firm Drive-Ins” are Sonic Eating places that SRI, the franchisor’s affiliate, owns and operates, or {that a} partnership or restricted legal responsibility firm wherein SRI owns a majority curiosity owns and operates.

• “Franchise Drive-Ins” are Sonic Eating places that Sonic’s franchisees personal and function.

• Sonic’s affiliate periodically buys Sonic Eating places from and sells Sonic Eating places to franchisees. For transactions throughout its 2022 fiscal 12 months and its 2021 fiscal 12 months, Sonic consists of the eating places as Firm Drive-Ins if its affiliate owned and operated the eating places for almost all of the 12 months, and it consists of the eating places as Franchise Drive-Ins if a franchisee operated the eating places for almost all of the 12 months.

• For the transactions from 2018 by 2019, Sonic included any Sonic Restaurant that its affiliate purchased from or offered to any franchisee in the course of the 12 months as a Franchise Drive-In, no matter when that buy or sale occurred in the course of the 12 months.

• Sonic calculated the figures on this Merchandise 19 utilizing info that its associates and franchisees supplied. Sonic derived the product sales of Franchise Drive-Ins from unaudited month-to-month monetary studies that franchisees submitted to compute royalty charges. Sonic used product sales knowledge that it collected from franchisees’ POS techniques to cowl any month-to-month monetary studies that franchisees did not submit.

• Sonic’s 2022 fiscal 12 months contained 53 weeks, so for the monetary efficiency representations protecting the 2022 fiscal 12 months, Sonic eliminated the Gross Gross sales from the 53rd week to be able to present an correct year-over-year comparability.

Half 1 – Common Gross Gross sales for 2018-2022

2022 Fiscal 12 months – Common Gross Gross sales

• Firm Drive-Ins (319 eating places):  $1,318,000
• Franchise Drive-Ins (3,133 eating places):  $1,608,000
• Complete of Firm Drive-Ins and Franchise Drive-Ins (3,452 eating places):  $1,581,000

2021 Fiscal 12 months – Common Gross Gross sales

• Firm Drive-Ins (271 eating places):  $1,374,000
• Franchise Drive-Ins (3,184 eating places):  $1,708,000
• Complete of Firm Drive-Ins and Franchise Drive-Ins (3,455 eating places):  $1,681,000

2020 Fiscal 12 months – Common Gross Gross sales

• Firm Drive-Ins (267 eating places):  $1,346,000
• Franchise Drive-Ins (3,200 eating places):  $1,633,000
• Complete of Firm Drive-Ins and Franchise Drive-Ins (3,467 eating places):  $1,611,000

2019 Calendar 12 months – Common Gross Gross sales

• Firm Drive-Ins (169 eating places):  $1,272,000
• Franchise Drive-Ins (3,154 eating places):  $1,345,000
• Complete of Firm Drive-Ins and Franchise Drive-Ins (3,323 eating places):  $1,341,000

2018 Calendar 12 months – Common Gross Gross sales

• Firm Drive-Ins (170 eating places):  $1,204,000
• Franchise Drive-Ins (3,316 eating places):  $1,268,000
• Complete of Firm Drive-Ins and Franchise Drive-Ins (3,486 eating places):  $1,265,000

Half 2 – Breakdown of Common Gross Gross sales for 2022

Conventional Franchise Drive-Ins, by Gross Gross sales Stage – Common Gross Gross sales (2022 Fiscal 12 months)

• High Third (1,044 eating places):  $2,289,000
• Center Third (1,043 eating places):  $1,527,000
• Backside Third (1,044 eating places):  $1,011,000
• Complete (3,129 eating places):  $1,609,000

Conventional Firm Drive-Ins, by Gross Gross sales Stage – Common Gross Gross sales (2022 Fiscal 12 months)

• High Third (106 eating places):  $1,826,000
• Center Third (106 eating places):  $1,232,000
• Backside Third (106 eating places):  $900,000
• Complete (319 eating places):  $1,318,000

All Conventional (Franchise and Firm) Drive-Ins, by Gross Gross sales Stage – Common Gross Gross sales (2022 Fiscal 12 months)

• High Third (1,149 eating places):  $2,256,000
• Center Third (1,150 eating places):  $1,497,000
• Backside Third (1,149 eating places):  $995,000
• Complete (3,448 eating places):  $1,582,000

All Conventional (Franchise and Firm) Drive-Ins, by Geographic Location – Common Gross Gross sales (2022 Fiscal 12 months)

• Midwest (484 eating places; 14% of complete):  $1,564,000
• Northeast (65 eating places; 2% of complete):  $1,607,000
• South (2,485 eating places; 72% of complete):  $1,574,000
• West (414 eating places; 12% of complete):  $1,682,000
• Complete (3,448 eating places; 100% of complete):  $1,582,000

Conventional Franchise Drive-Ins at C-Retailer Areas, by Gross Gross sales Stage – Common Gross Gross sales (2022 Fiscal 12 months)

• High Third (18 eating places):  $1,642,000
• Center Third (17 eating places):  $1,071,000
• Backside Third (18 eating places):  $687,000
• Complete (53 eating places):  $1,126,000

Part VI – Sonic Drive-In Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️