McDonald's vs Sonic Drive In Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Sonic Drive In Franchise
Investment $1,314,500 - $2,306,500$1,242,000 - $3,523,300
Franchise Fee $45,000$45,000
Royalty Fee 4%2.45-5%
Advertising Fee 4%+3%
Year Founded 19551954
Year Franchised 19551959
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $45K10 years for $6K


Business Experience Requirements
 
McDonald's Franchise
Sonic Drive In Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

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

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

    Training & Support
     
    McDonald's Franchise
    Sonic Drive In Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing 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 Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% 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
     
    McDonald's Franchise
    Sonic Drive In Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


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      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 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.