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What is Sonic’s competitive advantage over other fast food franchises?
What are the advantages of becoming a Sonic franchisee?
What are the disadvantages of buying into the Sonic franchise?
Sonic, the largest drive-in fast food chain in the United States, offers customers a dose of nostalgia with its 1950s-style curbside speakers and carhop service. It was started as a sole proprietorship, then became a partnership, and today is a successful franchise. Sonic franchisees have the benefit of getting a business that already has a national reputation and a national advertising campaign. They also get training and support from the franchisor. However, franchisees must work hard to make their restaurants a success. Franchisees must build their locations, purchase equipment, hire excellent employees, make certain the products live up to Sonic’s reputation, maintain a clean, inviting facility, and much more. Franchisees also have rules to follow. In the case of Sonic, franchisees must pay royalty fees, have excellent financial credentials, have prior restaurant/entrepreneurial experience, and be operationally able to open two or more drive-ins. Despite these costs, successful Sonic franchises have been able to capitalize on the Sonic business model and brand equity.
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