Sonic Drive In vs Wendy's Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Wendy's Franchise
Investment $1,242,000 - $3,523,300$318,850 - $3,689,350
Franchise Fee $45,000$40,000
Royalty Fee 2.45-5%4%
Advertising Fee 3%3.5%Nat'l +0.5% Local
Year Founded 1954-
Year Franchised 1959-
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee 10 years for $6K-


Business Experience Requirements
 
Sonic Drive In Franchise
Wendy's Franchise
Experience
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner
    		•  Wendy's is actively pursuing prospective franchisees who: * Are interested in pursuing multi-unit opportunities through the acquisition of existing restaurants or the development of new restaurants * Are multi-unit operators who have extensive restaurant experience (preferably quick service) with proven leadership skills * Are committed to operational excellence, customer service and a strong willingness to learn and practice the Wendy's business model * Demonstrate exceptional managerial and business acumen * Are committed to the advancement and growth of their business * Have access to adequate capital for reinvestment in Wendy’s Image Activation program and new restaurant development.

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

    Training & Support
     
    Sonic Drive In Franchise
    Wendy's Franchise
    Training On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location Initial and on-going manager and crew level training programs focus on what is needed to provide Wendy’s “A Cut Above” total customer experience as well as providing management training on various business skills.
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform Franchisees receive on-going direct support from our skilled operators at the field level. We strive for A-level operations at every restaurant and provide the tools, resources and training to achieve superior customer service levels while maintaining restaurant level profit margins.
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO 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.

    		-

    Expansion Plans
     
    Sonic Drive In Franchise
    Wendy's Franchise
    US Expansion Yes-
    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 Wendy's

    Wendy's is a chain of fast food restaurants based in Dublin, Ohio and owned by the United States corporation Wendy's International, Inc. There are over 6,600 Wendy's restaurants worldwide. The chain is famous for its chili. Also, it is known for its Frosty dairy desserts, the fact that their burgers are square, its fresh and never frozen ground beef, and its making of all sandwich items to order. Unlike most fast food chains, Wendy's historically did not serve breakfast, except for stores in Puerto Rico. Wendy's tried serving breakfast in the mid-1980s, but the endeavor quickly failed. However, they have reformulated their breakfast menu recently and are now serving breakfast in many locations. Wendy's was founded by Dave Thomas in 1969 and named after his 8-year old daughter, Melinda, who had the nickname of "Wendy." The corporate headquarters is located in Dublin, Ohio. The first Wendy's restaurant was opened in Columbus, Ohio on November 15, 1969, and grew rapidly to open over 3,000 stores by 1985. However, by the mid-1980s some Wendy's restaurants became underperforming and closed. By 1989, Dave Thomas came out of retirement and started doing commercials for Wendy's and helped rebuild the restaurant until his death. After international expansion in the 1980s, the chain retrenched in the late 1990s. In 1999 it pulled out of London and Hong Kong (its Hong Kong branch was located on Lockhart Road in Wan Chai). In 1995, Tim Hortons' popularity had spilled over to American investors; the chain's parent company, The TDL Group ("TDL" stands for the original corporate name "Tim Donut Ltd."), was acquired by Wendy's International, Inc.. As a result, Ron Joyce, Tim Horton's partner and first franchisee, was, for a time, the largest shareholder of Wendy's.

    The total investment necessary to begin operation of a Wendy’s Restaurant will vary depending upon whether the property is purchased for cash, financed or leased, as well as other factors, but it normally ranges from $1,893,850 to $3,689,350 if you purchase for cash, $565,850 to $1,131,350 if you finance, and $318,850 to $643,850 you lease (see Item 7). This includes an amount between $0-$55,000 that must be paid to the franchisor or its affiliates.
    "Top     ""
    #24 in Canada's Top franchises.

    "franchiserankingscom"
    #53 on Franchise Rankings.com