Sonic Franchise Cost, Revenue & Review 2026
- Investment
- $1.5M – $2.5M
- Disclosed sales
- $1.6M
- gross sales, not profit
- SBA charge-off
- 8.3%
- on 144 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sonic is a quick-service drive-in chain serving burgers, hot dogs, and signature drinks to customers in car stalls and at patio seating. Franchisees run drive-ins staffing 15 to 30 employees across breakfast through dinner.
FranchiseVerdict summary · 2026
A Sonic franchise requires a total initial investment of $1.5M – $2.5M, including a $11K – $15K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.6M[2]. SBA 7(a) loans show a 8.3% charge-off rate across 144 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.5M – $2.5M
- 97th pct Service Resta…
- Avg gross sales
- $1.6M
- 29th pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 3,412
- 96th pct Service Resta…
- SBA charge-off
- 8.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.5M – $2.5M including a $15K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year (median $1.5M).
- RISKVerdict B (Above average), verdict score 69/100 (higher is better). SBA loan charge-off rate of 8.3% across 144 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -24 franchised outlets in the latest year (32 opened, 56 closed); 12 signed but not yet open (Item 20).
- SCALEEstablished system with 3,412 units across 52 years of franchising. Strong brand recognition and operational playbook.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sonic Franchising LLC
- Parent company
- Inspire Brands, Inc.
- FDD Item 1, page 12 of the 2026 FDD
- Predecessor
- Sonic Industries Services LLC (formerly Sonic Industries Services Inc.)
- Prior franchisor entity
- CEO title
- Inspire Brands Chief Executive Officer (Board of Managers Member of Sonic Franchising LLC)
- Paul J. Brown
- Incorporated in
- Delaware
- HQ
- Three Glenlake Parkway NE, Atlanta, Georgia 30328
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $51.9M
- vs $59.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Same owner · FDD Item 1, page 12
6 other brands on this site name Inspire Brands, Inc. as parent or ultimate parent in their own FDD.
Portfolio: Inspire Brands
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Paul J. Brown
- Headquarters
- GA
- Founded
- 1954
- FDD year
- 2026
- States available
- 47
Can you afford it, and what does the money buy?
Entry cost runs 313% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial franchise fee | $15K | $15K | |
| Travel and living expenses during training | $8K | $94K | |
| Crew training expenses | $15K | $43K | |
| Prepaid expenses | $2K | $125K | |
| Real property/ occupancy charge | — | — | |
| Building costs | $600K | $800K | |
| Site work | $450K | $700K | |
| Restaurant equipment | $175K | $310K | |
| Point-of-sale system ("POS"), digital menu housings ("POPS") & other technology | $105K | $160K | |
| External Signage | $50K | $80K | |
| Beginning Inventory | $20K | $50K | |
| Advertising funds | $2K | $5K | |
| Insurance premiums | $11K | $22K | |
| Payroll | $27K | $95K | |
| Additional funds (3 months) | $5K | $25K | |
| Total initial investment | $1.5M | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $2.5M
- Bottom third — review vs category
- Liquid capital req'd
- $5K – $25K
- Top 40% of category vs category
- Franchise fee
- $11K – $15K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 0.9%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 0.9% |
| Training fee | $250 |
| Transfer fee | $3K |
| Renewal fee | $15K |
| Inventory (initial) | $10K – $50K |
| Total fee load | 8.3% of rev |
What do units actually make?
Average unit sales run 59% above the quick-service restaurants norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Sonic until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$2.0M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Sonic unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.5M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- AUV (Annual Unit Volumes)
- Sample size
- 3,057 outlets
- vs category median 19 · large
- Range (low → high)
- $255K→$4.8MCited, not corroborated — printed on page 72 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $920K→$2.3M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.6M/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
Total ongoing fee load of 8.3% (near the Quick-Service Restaurants median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -2.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 6% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Sonic Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,412
- Opened
- 32
- Last reporting year
- Closed
- 56
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 292
- Corporate units in the system
- % franchised
- 91%
- vs corporate-owned
- Multi-unit owners
- 5.6%
- Net growth (3-yr)
- -2.3%
- Net unit change over 3 years
- 3-yr CAGR
- -2.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 12
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 16
- Franchisor's next-year forecast
- Transfer rate
- 2.9%
- Owners selling to other franchisees
- Termination rate
- 1.5%
- Franchisor-initiated terminations
- Ceased ops
- 9.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 47 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
3,194 current owners across 47 states.
- TX 884
- AR 196
- OK 193
- MO 187
- TN 165
- LA 142
- KS 132
- MS 122
- FL 100
- CA 90
- AZ 88
- AL 77
- +35 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 144
- Loan volume
- $132.1M
- Median loan
- $683K
- 50th percentile
- Charge-off rate
- 8.3%
- on 144 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 53
- Defaults
- 10
- Typical loan rate
- 5.9%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 6,963
- 5.3 per loan
- Lender concentration
- 10%
- top lender's share
Borrower mix: 44% went to startups / new businesses, 56% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Vintage analysis
Sonic charge-off rate by loan vintage
Top lenders financing Sonic franchisees
Showing 3 of 53 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Sonic from SBA 7(a) FOIA data.
- Principal loss rate
- 3.7%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 5.90%
- Avg chargeoff amount
- $485K
- Lender concentration
- 10.4%
- Job velocity
- 5.3 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 6,963
Top SBA lendersTop lender holds 10% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | PNC Bank, National Association | 15 | $13.0M | 0.0% |
| 2 | Simmons Bank | 14 | $12.3M | 0.0% |
| 3 | Wells Fargo Bank National Association | 11 | $10.2M | 10.0% |
| 4 | Readycap Lending, LLC | 9 | $6.5M | 44.4% |
| 5 | Banc of California | 9 | $11.7M | 0.0% |
| 6 | Comerica Bank | 7 | $5.3M | 57.1% |
| 7 | Live Oak Banking Company | 6 | $13.9M | 0.0% |
| 8 | Wachovia SBA Lending, Inc. | 4 | $4.0M | 0.0% |
| 9 | Celtic Bank Corporation | 4 | $6.1M | 0.0% |
| 10 | First Guaranty Bank | 4 | $2.7M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 23 | 1 | 4.8% |
| CACalifornia | 14 | 0 | 0.0% |
| KSKansas | 12 | 0 | 0.0% |
| FLFlorida | 9 | 4 | 50.0% |
| MOMissouri | 9 | 0 | 0.0% |
| COColorado | 8 | 0 | 0.0% |
| GAGeorgia | 7 | 1 | 14.3% |
| OHOhio | 7 | 0 | 0.0% |
| LALouisiana | 6 | 1 | 16.7% |
| NENebraska | 6 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.3% — 48% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Large 3,412-unit QSR system franchising since 1974 with no pending litigation and only 4 concluded matters (2017 data-breach class actions, settled and insurance-paid) — trivial relative to system size. Net worth $25.2M, positive net income $2.82M, audited, Item 19 disclosed.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two concluded data breach-related class actions: (1) In re Sonic Corp. Customer Data Security Breach Litigation - settled August 12, 2019 for $4,325,000 paid by cyber liability insurance; (2) Alcoa Community Federal Credit Union v. Sonic Corp. et al. - consolidated financial institution class action filed October 16, 2018 regarding September 26, 2017 data breach incident. No pending litigation disclosed.
Largest disclosed settlement: $5,730,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor revenue = franchise fees and royalty revenues, including amounts from Affiliates ($7.239M in 2025).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 69 / 100 verdict
- 01MINOR3,412 units, 4 concluded suits (none pending)
- 02MINORdata-breach settlement paid by cyber insurance
- 03MINORpositive net income $2,820,000, net worth $25.2M
- 04MEDaudited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail6 matters · Item 3
Litigation cases
The franchisor
Concluded (2)
Alcoa Community Federal Credit Union v. Sonic Corp., Sonic Industries Services Inc., Sonic Capital LLC, Sonic Franchising LLC, Sonic Industries LLC, Sonic Restaurants, Inc.
settledThird-party plaintiff · filed 2018-10-16 · U.S. District Court for the Northern District of Ohio (filed in the Eastern District of Arkansas) · 1:19-sb-55000 (Previous Case No. 4:18-cv-00770-BSM)
“plaintiffs filed a consolidated financial institution class action arising out of the data breach incident made public on September 26, 2017. The plaintiffs alleged they suffered property damage and financial losses because we implemented inadequate measures to protect financial institutions’ payment card data from being stolen.”Page 26 of the 2026 FDD, Item 3
Outcome:“On April 25, 2022, the parties entered into a Settlement Agreement and Release whereby defendants agreed to pay up to $5,730,000 to cover eligible class member claims, attorneys’ fees, and costs of administration in exchange for a release of claims against defendants.”
In re Sonic Corp. Customer Data Security Breach Litigation
settledThird-party plaintiff · filed 2017-12-12 · United States District Court for the Northern District of Ohio, Eastern Division of Cleveland · MDL Case Nos. 1:17-sb-55000-JSG through 1:17-sb-55008-JSG
“In re Sonic Corp. Customer Data Security Breach Litigation (United States District Court for the Northern District of Ohio, Eastern Division of Cleveland, MDL Case Nos. 1:17-sb-55000-JSG through 1:17-sb-55008-JSG). On December 12, 2017, plaintiffs filed a consumer class action asserting various claims related to our alleged failure to safeguard customer payment card information.”Page 26 of the 2026 FDD, Item 3
Outcome:“In part, the settlement provided that, in exchange for a release of claims against defendants, franchisees and relevant vendors, defendants had to pay a total of $4,325,000 into a settlement fund to cover eligible class member claims, attorneys’ fees and costs of administration.”
Parent, affiliates and predecessor
Concluded (4)
New York v. Dunkin’ Brands, Inc.
concludedGovernment or regulatory action · Dunkin’ Brands, Inc. (“DBI”) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019). In this matter, the N.Y. Attorney General (“NYAG”) filed”Page 27 of the 2026 FDD, Item 3
Outcome:“Under the consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers, and maintain a comprehensive information security program through September 2026, including precautions and response measures for credential-stuffing attacks.” (page 28)
The People of the State of California v. Arby’s Restaurant Group, Inc.
settledGovernment or regulatory action · Arby’s Restaurant Group, Inc. (“ARG”) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“The Attorneys General in these states sought information from ARG on its use of franchise agreement provisions prohibiting the franchisor and franchisees from soliciting or employing each other’s employees. The states alleged that the use of these provisions violated the states’ antitrust, unfair competition, unfair or deceptive acts or practices, consumer protection and other state laws.”Page 27 of the 2026 FDD, Item 3
The People of the State of California v. Dunkin’ Brands, Inc.
settledGovernment or regulatory action · Dunkin’ Brands, Inc. (“DBI”) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“The People of the State of California v. Dunkin’ Brands, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of “no-poaching” provisions”Page 27 of the 2026 FDD, Item 3
In the Matter of Jimmy John’s Franchisor SPV LLC
concludedGovernment or regulatory action · Jimmy John’s Franchisor SPV, LLC (“JJF”) · Securities Commissioner of Maryland · 2025-0122
“In the Matter of Jimmy John’s Franchisor SPV LLC (Securities Commissioner of Maryland, Case No. 2025-0122). On March 28, 2022, JJF filed a Franchise Disclosure Document (FDD) with the Maryland Securities Division as part of a notice of exemption from franchise registration. In this filing, JJF listed the former franchisees but omitted the required contact information”Page 28 of the 2026 FDD, Item 3
Outcome:“Under the terms of the Consent Order, JJF agreed to pay a $30,000 civil monetary penalty, to permanently cease and desist from the offer or sale of franchises in violation of the Maryland Franchise Law, and to disclose the existence of the Consent Order in future franchise disclosure documents.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 8.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 0.8 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 6 |
View Item 3 litigation summary
Two concluded data breach-related class actions: (1) In re Sonic Corp. Customer Data Security Breach Litigation - settled August 12, 2019 for $4,325,000 paid by cyber liability insurance; (2) Alcoa Community Federal Credit Union v. Sonic Corp. et al. - consolidated financial institution class action filed October 16, 2018 regarding September 26, 2017 data breach incident. No pending litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 91 hrs
- On-the-job training
- 135 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- POS / POPS (digital menu housings) platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS / POPS (digital menu housings) platform
Item 20 · call current owners
Franchisee Contacts
3,194 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sonic franchise?
The total investment to open a Sonic franchise ranges from $1.5M – $2.5M, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sonic franchise owners earn?
According to Item 19 of the Sonic FDD, the average gross sales per unit is $1.6M. The median is $1.5M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sonic?
Sonic is franchised by Sonic Franchising LLC. Its parent company is Inspire Brands, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sonic FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Sonic FDD and qualifies whose outlets they describe.
What is Sonic's franchise failure rate?
Based on SBA 7(a) loan data, Sonic has a charge-off rate of 8.3% across 144 loans, meaning 8.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Sonic franchise locations are there?
As of their most recent FDD filing, Sonic has 3,412 total units in the United States, including 3,120 franchised units and 292 company-owned units. 32 new units were opened in the latest reporting year.
Is Sonic a good franchise to buy?
FranchiseVerdict rates Sonic as a B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.