Sonic Drive In vs Red Robin Gourmet Burgers Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Red Robin Gourmet Burgers Franchise
Investment $1,242,000 - $3,523,300$1,865,000 - $4,115,000
Franchise Fee $45,000$35,000
Royalty Fee 2.45-5%4%
Advertising Fee 3%-
Year Founded 19541969
Year Franchised 19590
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee 10 years for $6K-


Business Experience Requirements
 
Sonic Drive In Franchise
Red Robin Gourmet Burgers Franchise
Experience
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner
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    Financing Options
     
    Sonic Drive In Franchise
    Red Robin Gourmet Burgers 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
    Red Robin Gourmet Burgers 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 -
    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.

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    Expansion Plans
     
    Sonic Drive In Franchise
    Red Robin Gourmet Burgers Franchise
    US Expansion YesNo
    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.

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    #91 on Franchise Rankings.com
    #4 in Franchise 500 for 2020.
    #28 in Franchise 500 for 2021.




    About Red Robin Gourmet Burgers

    Red Robin Gourmet Burgers was founded in 1969. It is a casual dining restaurant chain that serves up wholesome, fun, feel-good experiences in a family-friendly environment. Red Robin restaurants are famous for serving more than 22 high-quality gourmet burgers in a variety of recipes with Bottomless Steak Fries, as well as salads, soups, appetizers, entrees, desserts, and signature Mad Mixology Beverages. There are more than 360 Red Robin restaurants located across the United States and Canada, which include both corporate-owned locations and those operating under franchise or license agreements.

    The initial franchise fee is $35,000. The total investment necessary to begin operation of a RED ROBIN® RESTAURANT ranges from $2,220,000 to $4,115,000 for a freestanding prototype building, or $1,865,000 to $3,635,000 for a standard-size, in-line space prototype or for a mid-size, in-line space prototype.
    These ranges include the initial franchise fee of $35,000 that you must pay to the franchisor but does not include the cost of buying, building or renting the restaurant location and the cost to obtain a liquor license.

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