Nathan's Famous vs Sonic Drive In Franchise Comparison

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

Start-Up Costs and Fees
 
Nathan's Famous Franchise
Sonic Drive In Franchise
Investment $43,000 - $1,071,360$1,242,000 - $3,523,300
Franchise Fee $30,000$45,000
Royalty Fee 5.5%2.45-5%
Advertising Fee 2%3%
Year Founded 19161954
Year Franchised 19881959
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 50% of franchise fee10 years for $6K


Business Experience Requirements
 
Nathan's Famous 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
     
    Nathan's Famous Franchise
    Sonic Drive In Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees Yes/NoNo/Yes
    Start-up Costs No/NoNo/Yes
    Equipment Yes/NoNo/Yes
    Inventory Yes/NoNo/Yes
    Receivables No/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Nathan's Famous 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, Field operations/evaluationsPurchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform
    Marketing Co-op advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 14

    Absentee ownership of franchise is allowed. (65% 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
     
    Nathan's Famous Franchise
    Sonic Drive In Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About Nathan's Famous

    Franchising is a business concept that allows qualified investors to become part of an established, existing “system.” A good way to look at franchising is, you’re in business for yourself, but not by yourself. Strategically, this provides many benefits under a brand name that has consumer awareness and equity.
    Nathan’s has taken this basic premise and redefined it to exceed the most stringent business criteria of today’s investor.

    Nathan’s offers a wide range of restaurant designs and customized equipment, thereby offering business opportunities to qualified candidates regardless of space constraints or investment limitations.

    The estimated initial investment for a BMP Operation ranges from $43,000 to $86,300, including an initial license fee of $7,500. If you want to add an “Arthur Treacher’s” BMP Operation to your new or existing food service establishment, the additional estimated initial investment will be from $34,404 to $81,486, including an initial license fee of $7,500.

    "Top
    #78 in Gator's Top franchises
    #286 in Franchise 500 for 2020.


    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.