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Updated RecentlySonic Drive In vs Hot Dog On A Stick Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Sonic Drive In vs Hot Dog On A Stick including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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| Investment | $1,242,000 - $3,523,300 | $338,200 - $556,000 |
| Franchise Fee | $45,000 | $15,000 - $25,000 |
| Royalty Fee | 2.45-5% | 6% |
| Advertising Fee | 3% | 2% |
| Year Founded | 1954 | 1946 |
| Year Franchised | 1959 | 1995 |
| Term Of Agreement | 20 years | - |
| Term Of Agreement | 20 years | - |
| Renewal Fee | 10 years for $6K | - |
Business Experience Requirements |
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| Experience | - | |
Financing Options |
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| In-House/3rd Party | In-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 |
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| Training | On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location | On-The-Job Training: 32.5 hours Classroom Training: 35.5 hours Additional Training: At training 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 |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development 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 |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | No | Yes |
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 Hot Dog On A Stick
Our first store opened at Muscle Beach, Santa Monica, California in 1946. Our founder, Dave Barham, was a charismatic and enlightened personality who understood the value of treating people to an experience as opposed to a service. In short, he built his business around the concepts of putting people first, and giving them a show.
His approach was extremely successful. By 1990 Hot Dog on a Stick had become an icon in our primary venue, shopping malls, with 60 stores operating in 12 states.
After Dave passed away in 1991, we became an employee owned corporation (ESOP) led by a management team he had mentored over the years. This team has successfully overseen Hot Dog on a Stick's expansion to over 103 stores in 17 states.