Sonic Drive In vs Krystal Restaurants Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Krystal Restaurants Franchise
Investment $1,242,000 - $3,523,300$900,000 - $1,300,000
Franchise Fee $45,000$32,500
Royalty Fee 2.45-5%4.5%
Advertising Fee 3%-
Year Founded 19541932
Year Franchised 19591990
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 10 years for $6K$8.1K


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

  • Industry experience
  • General business experience
    		•

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

    Training & Support
     
    Sonic Drive In Franchise
    Krystal Restaurants 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 Newsletter, Meetings, Toll-free phone line, Grand opening, 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 Co-op advertising, Ad slicks, Regional advertising
    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.

    		 Franchisees required to buy multiple units/master licenses; 94% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 30

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Sonic Drive In Franchise
    Krystal Restaurants Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    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 Krystal Restaurants

    The Krystal Company is the oldest quick service restaurant chain in the South and the second oldest in the United States. The Chattanooga-based company currently has more than 450 restaurants in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Texas and Virginia. Founded in 1932, Krystal restaurants have become more than sparkling-clean eateries where friendly employees serve up fresh, delicious food. Krystal has become a cultural icon and an experience that virtually every man, woman and child in the South has shared. Nearly everyone in the region has a Krystal memory. The Krystal brand, and the great food, service, value and setting which it represents, has taken a prominent place in the South's cultural landscape.