Taco John's vs Sonic Drive In Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Taco John's vs Sonic Drive In including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Taco John's Franchise
Sonic Drive In Franchise
Investment $475,000 - $1,599,000$1,242,000 - $3,523,300
Franchise Fee $25,000$45,000
Royalty Fee 5%2.45-5%
Advertising Fee 4%3%
Year Founded 19681954
Year Franchised 19691959
Term Of Agreement 20 years+10+10+1020 years
Term Of Agreement 20 years+10+10+1020 years
Renewal Fee -10 years for $6K


Business Experience Requirements
 
Taco John's Franchise
Sonic Drive In Franchise
Experience
  • Industry experience
  • General business experience

  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner
    		•

    Financing Options
     
    Taco John's Franchise
    Sonic Drive In Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Taco John's Franchise
    Sonic Drive In Franchise
    Training -On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform
    Marketing Co-op advertising, Ad slicksCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations 37% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 15

    Absentee ownership of franchise is allowed. (75% of current franchisees are owner/operators)

    		 International franchisees required to buy multiple units/master licenses; 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 25

    Absentee ownership of franchise is NOT allowed.

    Expansion Plans
     
    Taco John's Franchise
    Sonic Drive In Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Taco John's

    The story of Taco John's sounds more like a legend than the history of a business. In Cheyenne, Wyoming, a man named Juan opened a tiny taco house, serving uniquely seasoned and generously sized tacos and burritos. An immediate hit with the locals, the taco house was quickly purchased by local businessmen Harold Holmes and Jim Woodson in 1969. Renamed Taco John's, it began selling franchises right away and now has restaurants across America. The privately held company is still based in Cheyenne.

    "Entrepreneur

    #115 in Franchise 500 for 2020.
    #315 in Franchise 500 for 2021.


    About Sonic Drive In

    Sonic Industries Inc. was founded in 1973. In 1974, Sonic acquired the name 'Sonic Drive-In' from Troy Smith, Sr., and began franchising. Smith used his more than 15 years of experience in the restaurant business to develop and operate the Sonic franchise program. A wholly owned subsidiary of Sonic Corp., the company is based in Oklahoma City, Oklahoma, and has locations throughout the United States. The company's storefronts recently got a facelift to give them a 'retro-futuristic' look.

    Your estimated initial investment necessary to begin operation of a Traditional Sonic Drive-In franchise ranges from approximately $1,242,200 to $3,537,700 plus land costs and includes the $45,000 franchise fee that must be paid to Sonic.
    Your estimated initial investment necessary to begin operation of a Non-Traditional Sonic franchise ranges from approximately $361,900 to $978,700 and includes the $22,500 franchise fee that must be paid to Sonic.

    "franchiserankingscom"     "Entrepreneur
    #91 on Franchise Rankings.com
    #4 in Franchise 500 for 2020.
    #28 in Franchise 500 for 2021.