Sonic Drive-In charges a royalty fee of 5.0% of gross sales (2025 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.

The total ongoing fee rate for a Sonic Drive-In franchise is approximately 8.3% of gross sales (2025 FDD). This includes the royalty fee, a 3.3% marketing/advertising fund contribution, and other recurring charges.

Sonic Drive-In has been involved in 2 litigation cases over the past 3 years (2025 FDD). There are no class action lawsuits pending.

No, the Sonic Drive-In franchisor has no bankruptcy filings in their disclosure history (2025 FDD).

Sonic Drive-In offers protected territory rights to its franchisees (2025 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales rights are shared between the franchisor and franchisee.

Sonic Drive-In currently operates 3,461 locations (2025 FDD) (3,144 franchised, 317 company-owned). The system contracted by 1.7% over the past year. The 3-year compound annual growth rate is -0.8%.

The 1-year franchisee turnover rate for Sonic Drive-In is 2.5% (2025 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.

According to the Sonic Drive-In FDD Item 19 financial performance representation (2025 FDD), the median gross sales per unit is $1.5M (average: $1.6M).

The initial franchise agreement term for Sonic Drive-In is 10 years (2025 FDD). Franchisees can renew 2 times for 10-year periods. The total potential term is 30 years.

Sonic Drive-In's post-termination non-compete clause restricts former franchisees from operating a competing business for 1.5 years within 3 miles of the former location (2025 FDD).

No, Sonic Drive-In's franchise agreement does not require mandatory arbitration (2025 FDD). Disputes may be resolved through litigation.

Sonic Drive-In provides 360 hours of initial training over approximately 5 weeks (2025 FDD). Ongoing field support is provided on a as-needed basis.

Yes, Sonic Drive-In provides site selection assistance to help franchisees find the right location (2025 FDD). The franchisor also provides technology support and systems.