Sonic Drive In vs Rally's Hamburgers Franchise Comparison

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

Start-Up Costs and Fees
 
Sonic Drive In Franchise
Rally's Hamburgers Franchise
Investment $1,242,000 - $3,523,300$254,000 - $1,431,000
Franchise Fee $45,000$30,000
Royalty Fee 2.45-5%4%
Advertising Fee 3%4.5%
Year Founded 19541985
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
Rally's Hamburgers Franchise
Experience
  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner
    		• -

    Financing Options
     
    Sonic Drive In Franchise
    Rally's Hamburgers 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
    Rally's Hamburgers 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.

    		-

    Expansion Plans
     
    Sonic Drive In Franchise
    Rally's Hamburgers 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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    #4 in Franchise 500 for 2020.
    #28 in Franchise 500 for 2021.




    About Rally's Hamburgers

    As one of the country’s most recognized brands, Checkers & Rally's is an industry leader with over 30 years of experience and more than 800 restaurants. Our guests' love for our bold flavored and seared burgers, indulgent milkshakes, and Famous Seasoned Fries is driving us to expand in new cities and develop in existing markets across the country. We continue to accelerate with unprecedented growth. Because we put our franchisees first, you can enjoy a business made to last. Come grow with us and learn how we’ve got our franchisees back!

    The total investment necessary to begin operation of a Rallys Restaurant (excluding real estate and related costs) is: $780,000 to $1,431,000 for a new modular design single drive-thru restaurant; $320,500 to $787,000 for a site built, conversion or used modular drive-thru restaurant; $259,700 to $648,000 for an endcap strip-center and gas/convenience restaurant; and $254,000 to $514,000 for a Non-Traditional, Walmart or in-line restaurant in a high-density market. This includes $10,000 to $50,000 that must be paid to the franchisor or an affiliate, plus $10,000 for each additional restaurant that you agree to develop under a development agreement.

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