KFC US LLC vs Sonic Drive In Franchise Comparison

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

Start-Up Costs and Fees

 
KFC US LLC Franchise
Sonic Drive In Franchise
Investment $1,008,550 - $2,771,500$1,242,000 - $3,523,300
Franchise Fee $45,000$45,000
Royalty Fee 4-5%2.45-5%
Advertising Fee 5%3%
Year Founded 19301954
Year Franchised 19521959
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $4.9K10 years for $6K


Business Experience Requirements

 
KFC US LLC Franchise
Sonic Drive In Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
  • If no industry experience, must have an operating equity partner

  • Financing Options

     
    KFC US LLC Franchise
    Sonic Drive In Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/Yes
    Payroll No/YesNo/Yes

    Training & Support

     
    KFC US LLC Franchise
    Sonic Drive In Franchise
    Training On-The-Job Training: 6 weeks Classroom Training: 2 days 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 Site Selection Proprietary Software Franchisee Intranet Platform Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Franchisee Intranet Platform
    Marketing National Media Social media SEO Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations Franchisees required to buy multiple units/master licenses

    Absentee ownership of franchise is NOT allowed.

    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

     
    KFC US LLC Franchise
    Sonic Drive In Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    About KFC US LLC

    His recipe is still a secret, but more than 2 billion of Colonel Harland Sanders' 'finger lickin' good' chicken dinners are served annually in more than 82 countries around the world. Nearly 50 years ago, Colonel Sanders set out to sell complete meals to time-strapped families, calling his home meal replacements 'Sunday Dinner, Seven Days a Week.' Acquired by PepsiCo in 1986, KFC is now a part of Yum! Brands Inc., which includes A&W, Long John Silver's, Taco Bell and Pizza Hut.

    The total investment necessary to begin operation of a newly constructed KFC outlet ranges from $1,442,600 to $2,771,550. This includes $45,000 to $50,000 that must be paid to KFCLLC or its affiliates.
    The total investment necessary to begin operation of a reopened or remodeled former KFC outlet, or converted KFC outlet ranges from $1,008,600 to $2,221,550. This includes $45,000 to $50,000 that must be paid to KFCLLC or its affiliates.
    KFCLLC also offers multi-unit development opportunities. The total investment necessary to begin exercising development rights is estimated to be $135,000 to $540,000 (based on the expectation that you will develop 3 to 12 outlets during the term of the development agreement), determined by multiplying the number of new outlets you agree to develop by $45,000, all of which must be paid to KFCLLC.
    The total investment necessary to begin operation of a KFC non-traditional outlet ranges from $241,100 to $996,000. This includes $12,100 to $17,100 that must be paid to the licensor or its affiliates.

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    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.