Sonic Drive In vs Taco Palace Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Taco Palace Franchise
Investment $1,242,000 - $3,523,300$53,200 - $133,100
Franchise Fee $45,000$33,950
Royalty Fee 2.45-5%0-4%
Advertising Fee 3%-
Year Founded 19541985
Year Franchised 19591996
Term Of Agreement 20 years1 year+
Term Of Agreement 20 years1 year+
Renewal Fee 10 years for $6K-


Business Experience Requirements
 
Sonic Drive In Franchise
Taco Palace Franchise
Experience
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner

  • General business experience
    		•

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

    Training & Support
     
    Sonic Drive In Franchise
    Taco Palace Franchise
    Training 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 Franchisee Intranet Platform Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app Ad slicks
    Operations 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.

    		 0% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 12

    Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators)

    Expansion Plans
     
    Sonic Drive In Franchise
    Taco Palace Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    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.




    About Taco Palace

    Husband-and-wife team Larry and Sandi Faria bought Taco Palace from Kirk Davison in 1985. The Farias had previously owned a pair of Chevron Oil Co. franchises and brought to Taco Palace 16 years of franchise experience. In developing Taco Palace's franchise program, the Farias were driven by the goal to develop a franchisee-friendly system. Taco Palace franchisees are not required to pay a franchise fee and are strongly encouraged to rent or lease an existing building and then dress it up, rather than construct a new one, a practice that helps to lessen start-up costs. The privately held company is headquartered in Monett, Missouri, and has a co-branding relationship with Kentucky Fried Chicken.