Back Yard Burgers vs Sonic Drive In Franchise Comparison

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

Start-Up Costs and Fees
 
Back Yard Burgers Franchise
Sonic Drive In Franchise
Investment $465,000 - $1,680,000$1,242,000 - $3,523,300
Franchise Fee $35,000$45,000
Royalty Fee 5%2.45-5%
Advertising Fee 3%3%
Year Founded 19861954
Year Franchised 19881959
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee $1K10 years for $6K


Business Experience Requirements
 
Back Yard Burgers 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
     
    Back Yard Burgers 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/NoNo/Yes
    Payroll No/NoNo/Yes

    Training & Support
     
    Back Yard Burgers Franchise
    Sonic Drive In Franchise
    Training -On-The-Job Training: 400 hours Classroom Training: 24 hours Additional Training: At existing franchise location
    Support Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesPurchasing 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 slicks, National media, Regional advertisingCo-op Advertising Ad Templates National Media Regional Advertising Social media SEO Email marketing Loyalty program/app
    Operations 60% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 35

    Absentee ownership of franchise is NOT allowed. (90% of current franchisees are owner/operators)

    		 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
     
    Back Yard Burgers Franchise
    Sonic Drive In Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Back Yard Burgers

    What started as a premium quality burger sold in a grocery store in Cleveland, Mississippi in 1987 quickly caught fire. Lattimore "Lattie” Michael realized he had a recipe for success and thus opened the first Back Yard Burgers drive-thru restaurant. Customers flocked to it, eating up the fresh-grilled burgers, great conversation and the neighborly feel that reminded them of their backyard cookouts. A year later, Back Yard Burgers opened up in Tennessee and Florida. And the rest is delicious history.
    WHY BE A BACK YARD BURGERS FRANCHISEE?
    *Uniqueness - back yard flavor
    *A proven brand with a solid operating system
    *Growth free standing building
    *Unique development opportunities
    *Non universities, c-stores and professional sports
    *Strong positioning
    *Signature products
    *Persuasive, professional marketing
    *Operations support
    *Exclusive Territories

    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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