Sonic Drive In vs Jack in the Box Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Jack in the Box Franchise
Investment $1,242,000 - $3,523,300$1,651,500 - $2,638,600
Franchise Fee $45,000$50,000
Royalty Fee 2.45-5%5%
Advertising Fee 3%5%
Year Founded 19541951
Year Franchised 19591982
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee 10 years for $6K1,651,500 to $2,638,600


Business Experience Requirements
 
Sonic Drive In Franchise
Jack in the Box Franchise
Experience
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner
    		•  *Multi-unit restaurant operations experience *Minimum liquidity of $750,000 *Minimum net worth of $1.5 million *Ability to acquire and/or develop at least 5 restaurants *Operating partner is an equity partner and resides in the desired market

    Financing Options
     
    Sonic Drive In Franchise
    Jack in the Box Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/Yes-/Yes
    Start-up Costs No/Yes-/Yes
    Equipment No/Yes-/Yes
    Inventory No/Yes-/Yes
    Receivables No/Yes-/-
    Payroll No/Yes-/-

    Training & Support
     
    Sonic Drive In Franchise
    Jack in the Box Franchise
    Training On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location On-The-Job Training: 183 hours Classroom Training: 110 hours
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software 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.

    		-

    Expansion Plans
     
    Sonic Drive In Franchise
    Jack in the Box Franchise
    US Expansion Yes-
    Canada Expansion No-
    International Expansion No-

    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 Jack in the Box

    Jack in the Box is among the nation's leading fast-food hamburger chains, with more than 2000 quick-serve restaurants in 17 states. Jack in the Box Inc. (JACK) is offering a unique opportunity to franchise with one of the most popular brands in the quick-serve restaurant ("QSR") industry. The company's emphasis on operational efficiency and franchisee-focused value innovation has led JACK to become one of the most respected and sought after brands in the industry. The company is looking to establish relationships with select multi-unit franchise operators of non-competitive brands to franchise partial or whole markets as the brand approaches reaching its goal of being an 80% franchised chain. In select seed markets- Cincinnati, Indianapolis, Kansas City, Oklahoma City and Tulsa, growth starts with an acquisition. Franchise recently opened company restaurants and use these locations as a platform for future market development. Seeking new franchisees to develop Amarillo, Champaign, Little Rock, Louisville and Salt Lake City. New Market Development Program: Royalty fees reduced, franchise fee waived, up to 75% of advertising fee invested into local marketing. Restrictions apply and development fees still applicable.

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