Sonic Drive In vs Dairy Queen Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Dairy Queen Franchise
Investment $1,242,000 - $3,523,300$1,151,135 - $1,936,655
Franchise Fee $45,000$45,000
Royalty Fee 2.45-5%4%
Advertising Fee 3%5-6%
Year Founded 19541940
Year Franchised 19591944
Term Of Agreement 20 yearsVaries
Term Of Agreement 20 yearsVaries
Renewal Fee 10 years for $6K-


Business Experience Requirements
 
Sonic Drive In Franchise
Dairy Queen 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
    Dairy Queen 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/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support
     
    Sonic Drive In Franchise
    Dairy Queen Franchise
    Training On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location On-The-Job Training: 376 hours Classroom Training: 32 hours Additional Training: At existing DQ store
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app Ad Templates National Media Regional Advertising Social media Email marketing Loyalty program/app
    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.

    		 International franchisees required to buy multiple units/master licenses

    Number of employees needed to run franchised unit: 20 - 100

    Absentee ownership of franchise is allowed.

    Expansion Plans
     
    Sonic Drive In Franchise
    Dairy Queen Franchise
    US Expansion YesYes
    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 Dairy Queen

    Frozen yogurt producer J.F. McCullough was trying different things with a formula for another solidified dairy item, originating from his conviction that dessert tasted better when it was delicate and served straight from the cooler, not solidified strong. With his formula culminated, McCullough and his child, Alex, persuaded one regarding their clients to hold a starting offer of the new delicate frozen yogurt, and more than 1,600 individuals appeared to attempt it. In light of that underlying achievement, the McCulloughs opened the primary Dairy Queen area in 1940 in Joliet, Illinois. The main stores sold just delicate serve frozen yogurt - in sundaes, bring home pints and quarts, and cones- - however throughout the years, an assortment of dessert treats were added to the menu, for example, banana parts and Dilly Bars. In the 1950s, some Dairy Queens started serving hot sustenance things. Today, stores framework wide have menus that incorporate franks, cheeseburgers and chicken tenders through Dairy Queen's Grill and Chill idea. The organization likewise offers a DQ Treat idea that offers both Dairy Queen's solidified treats and the sister organization's natural product beverages and smoothies.

    International Dairy Queen, Inc., (IDQ) has been creating “smiles and stories” for more than 70 years. Tracing its roots back to 1940, the company, is a leading quick service restaurant franchisor of delicious frozen treats and mouth-watering hot food items. The company is corporately based in Minneapolis, MN, is the parent company of American Dairy Queen Corporation, Orange Julius of America and Karmelkorn Shoppes Inc., which develops, licenses and services a system of more than 6,400 Dairy Queen® Orange Julius® and Karmelkorn® stores in the United States, Canada and over 25 other countries. All are part of the Berkshire Hathaway family, a company owned by Warren Buffett, the legendary investor and CEO of Berkshire Hathaway.

    The total investment necessary to begin operation of a single DQ Grill & Chill® franchise is $1,151,135-$1,936,655.
    This includes the $45,555 that must be paid to the franchisor or affiliate. In addition, if you enter into a multiple trade area reservation agreement, you will pay an initial franchise fee deposit determined by multiplying the number of restaurants you are granted the right to develop by $10,000.

    ""   "Entrepreneur

    #16 in Franchise 500 for 2020.
    #42 in Franchise 500 for 2021.