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Report Generated: February 08, 2026 Data Source: Official FDD Filing (2025)

Sonic Drive-In

QSR

76
Good
3144
Total Units
$1.15M
Median Revenue
$669K – $3.14M
Total Investment
5.0%
Royalty Rate
$135K
Est. Profit
0.2%
Closure Rate

The Sonic Drive-In franchise requires a total investment of $669K – $3.14M with a 5.0% royalty fee and operates 3,144 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Sonic Drive-In.

★ Key Takeaways

Investment Payback
At median revenue of $1.15M, payback on $669K–$3.14M investment in ~1.7 years
Growth Signal
Net -76 units over 3 years (declining)
Fee Burden
Royalty + ad fund = 8.2% of gross sales, vs 7.9% category average
Financial Disclosure
This brand discloses financial performance data (Item 19)

Deal Breakers 1 flag detected

Critical issues identified from FDD analysis that warrant serious consideration before investing.

Closures Accelerating (+2 more closures vs prior year)
Franchise closures increased from 10 to 12 over the reporting period. An upward trend in closures is a warning sign.
Question to ask the franchisor:
What is causing the increase in closures? Are these concentrated in certain regions or demographics?

FDDIntel Score 76/100 · Good

Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.

Unit Growth
3/20
Stability
20/20
Investment Efficiency
20/20
Fee Reasonableness
8/15
Transparency
10/10
System Size
15/15

1 Cost of Entry FDD Item 7

Estimated initial investment range as disclosed in the most recent FDD.

Total Estimated Investment
$669K -- $3.14M
Midpoint
$1.91M
View detailed breakdown table
Line Item Low Estimate High Estimate
Franchise Fee $15,000 $15,000
Training $8,200 $93,600
Training $15,200 $42,500
Other $2,000 $125,000
Real Estate $0 $35,000
Buildout $250,000 $1,100,000
Other $50,000 $1,000,000
Equipment $175,000 $260,000
Technology $70,000 $160,000
Signage $30,000 $150,000
Inventory $10,000 $50,000
Other $2,000 $5,000
Insurance $10,000 $20,000
Training $26,800 $94,800
Working Capital $5,000 $25,000
Total $669,200 $3,140,900

2 Fee Structure FDD Items 5 & 6

Ongoing fees as disclosed in the FDD.

Royalty
0% Avg 4.7% 15%
5.0%
Ad Fund
0% Avg 3.1% 8%
3.2%
Franchise Fee
$0 Avg $20K $75K
$15K

Core Recurring Fees

Royalty fee (Gross Sales)
5.0% monthly
Brand fee/SBF contribution (Gross Sales)
0.9% monthly
Advertising cooperative fee/SMF contribution (Gross Sales)
3.25% monthly

Technology Fees

Technology fee/BTF contribution 0.25% /monthly

Other Recurring Fees

Late charge (Amount overdue per month)
1.75% monthly
Management fee (Gross Sales)
3.0% monthly

One-Time & Situational Fees

Site design fee $1,200
Transfer fee $3,000
Audit fee, interest and surcharge 10.0%
Renewal fee $15,000
+ 5 more situational fees
Additional training fee $200
Kitchen layout design fee $750
Insurance Variable
Indemnification Variable
Enforcement costs Variable
View complete fee table (15 items)
Fee Type Rate Type Basis Frequency
Royalty fee 5.0% PCT Gross Sales monthly
Brand fee/SBF contribution 0.9% PCT Gross Sales monthly
Advertising cooperative fee/SMF contribution 3.25% PCT Gross Sales monthly
Technology fee/BTF contribution 0.25% PCT Gross Sales monthly
Additional training fee $200 FIXED Per person for training new personnel one_time
Site design fee $1,200 FIXED Per PSL (Prototype Site Layout) one_time
Kitchen layout design fee $750 FIXED Per PKL (Prototype Kitchen Layout) one_time
Transfer fee $3,000 FIXED Per transfer one_time
Audit fee, interest and surcharge 10.0% PCT Unpaid amounts plus interest one_time
Late charge 1.75% PCT Amount overdue per month monthly
Renewal fee $15,000 FIXED Per renewal term one_time
Insurance N/A VARIABLE Cost of obtaining insurance one_time
Management fee 3.0% PCT Gross Sales monthly
Indemnification N/A VARIABLE Will vary with circumstances one_time
Enforcement costs N/A VARIABLE Will vary with circumstances one_time

3 Financial Performance Item 19 Available

Financial performance data as disclosed in FDD Item 19.

Revenue by Quartile

View all disclosed financial metrics (48 rows)
Metric Value Unit Cohort Period
AUV $935,705 USD 1st Quartile FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,320,788 USD 2nd Quartile FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,693,845 USD 3rd Quartile FY2024 (Jan 1 - Dec 29, 2024)
AUV $2,398,950 USD 4th Quartile FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,587,024 USD All Restaurants FY2024 (Jan 1 - Dec 29, 2024)
Median $969,886 USD 1st Quartile FY2024 (Jan 1 - Dec 29, 2024)
Highest $1,146,501 USD 1st Quartile FY2024 (Jan 1 - Dec 29, 2024)
Lowest $282,129 USD 1st Quartile FY2024 (Jan 1 - Dec 29, 2024)
Median $1,320,171 USD 2nd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Highest $1,501,675 USD 2nd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Lowest $1,146,519 USD 2nd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Median $1,690,128 USD 3rd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Highest $1,919,295 USD 3rd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Lowest $1,502,041 USD 3rd Quartile FY2024 (Jan 1 - Dec 29, 2024)
Median $2,270,659 USD 4th Quartile FY2024 (Jan 1 - Dec 29, 2024)
Highest $4,838,846 USD 4th Quartile FY2024 (Jan 1 - Dec 29, 2024)
Lowest $1,919,501 USD 4th Quartile FY2024 (Jan 1 - Dec 29, 2024)
Median $1,500,713 USD All Restaurants FY2024 (Jan 1 - Dec 29, 2024)
Highest $4,838,846 USD All Restaurants FY2024 (Jan 1 - Dec 29, 2024)
Lowest $282,129 USD All Restaurants FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,561,042 USD Northeast Region FY2024 (Jan 1 - Dec 29, 2024)
Median $1,294,624 USD Northeast Region FY2024 (Jan 1 - Dec 29, 2024)
Highest $4,838,846 USD Northeast Region FY2024 (Jan 1 - Dec 29, 2024)
Lowest $542,093 USD Northeast Region FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,621,362 USD Midwest Region FY2024 (Jan 1 - Dec 29, 2024)
Median $1,500,428 USD Midwest Region FY2024 (Jan 1 - Dec 29, 2024)
Highest $3,926,280 USD Midwest Region FY2024 (Jan 1 - Dec 29, 2024)
Lowest $472,331 USD Midwest Region FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,559,050 USD South Region FY2024 (Jan 1 - Dec 29, 2024)
Median $1,481,406 USD South Region FY2024 (Jan 1 - Dec 29, 2024)
Highest $4,161,151 USD South Region FY2024 (Jan 1 - Dec 29, 2024)
Lowest $282,129 USD South Region FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,703,222 USD West Region FY2024 (Jan 1 - Dec 29, 2024)
Median $1,606,376 USD West Region FY2024 (Jan 1 - Dec 29, 2024)
Highest $3,366,723 USD West Region FY2024 (Jan 1 - Dec 29, 2024)
Lowest $350,389 USD West Region FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,597,296 USD Free-standing Venue FY2024 (Jan 1 - Dec 29, 2024)
Median $1,510,818 USD Free-standing Venue FY2024 (Jan 1 - Dec 29, 2024)
Highest $4,838,846 USD Free-standing Venue FY2024 (Jan 1 - Dec 29, 2024)
Lowest $350,389 USD Free-standing Venue FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,121,215 USD Gas/C-Store Venue FY2024 (Jan 1 - Dec 29, 2024)
Median $1,154,982 USD Gas/C-Store Venue FY2024 (Jan 1 - Dec 29, 2024)
Highest $2,253,332 USD Gas/C-Store Venue FY2024 (Jan 1 - Dec 29, 2024)
Lowest $282,129 USD Gas/C-Store Venue FY2024 (Jan 1 - Dec 29, 2024)
AUV $1,647,515 USD Other Traditional Restaurants Venue FY2024 (Jan 1 - Dec 29, 2024)
Median $1,498,188 USD Other Traditional Restaurants Venue FY2024 (Jan 1 - Dec 29, 2024)
Highest $2,675,439 USD Other Traditional Restaurants Venue FY2024 (Jan 1 - Dec 29, 2024)
Lowest $918,243 USD Other Traditional Restaurants Venue FY2024 (Jan 1 - Dec 29, 2024)

$ Estimated Unit Profitability Industry Benchmark Estimate

Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.

$1.15M
Gross Revenue
$1.01M
Total Costs
$135K
Owner's Profit (11.7%)
7.1%
Annual ROI on Investment
View detailed P&L breakdown
Line Item Amount % of Revenue
Gross Revenue $1,146,519 100%
COGS $-343,956 30%
Labor $-321,025 28%
Occupancy $-114,652 10%
Marketing $-45,861 4%
Other Costs $-91,722 8%
Royalty Fee (franchisor) $-57,326 5.0%
Ad Fund Fee (franchisor) $-37,262 3.25%
Owner's Profit $134,716 11.7%

Investment Calculator Interactive

Model your personal financial scenario by adjusting the assumptions below.

Annual Revenue
Operating Margin
Initial Investment
Loan Percentage
Gross Revenue
Royalty + Ad Fund
Operating Profit
Annual Loan Payment
Net Annual Cash Flow
Payback Period
5-Year Total Return
Break-Even Monthly Rev
This calculator is for illustrative purposes only. Actual results will vary based on location, management, market conditions, and other factors. Always consult with a financial advisor and franchise attorney before making investment decisions.

4 Risk Assessment

Automated risk indicators based on FDD data analysis.

✓
Low Closure Rate
Average closure rate of 0.2% is below 2%, indicating strong unit retention.
↓
Declining Unit Count
Net -76 units over 3 years (-2.4%). The franchise system is contracting.
$
Quick Payback
Estimated ~1.7 year payback on investment at median revenue.
%
Reasonable Fee Burden
Combined royalty + ad fund of 8.2% is within normal range.
✓
Financial Data Disclosed
This franchisor provides Item 19 financial performance representations, enabling better due diligence.

5 Unit Growth & Health FDD Item 20

Franchise unit trajectory based on FDD Item 20 data.

Year Start Opened Closed Transferred End Closure Rate Net Growth
2022 3231 +39 -10 132 3220 0.3% -11
2023 3220 +23 -2 75 3194 0.1% -26
2024 3194 +30 -12 334 3144 0.4% -50
0.2%
Avg Closure Rate
3
Years of Data

6 Category Comparison QSR Brands

How Sonic Drive-In compares to peer brands in the QSR category.

Investment Midpoint

Median Revenue (Item 19)

Investment-to-Revenue Ratio

Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.

Brand Total Units Investment Range Median Revenue Royalty Inv/Rev Ratio
Subway 19502 $3K – $630K No Item 19 -- --
McDonald's 12772 $1.47M – $2.64M No Item 19 5.0% --
Dunkin' 8499 $527K – $1.83M $1.43M -- 0.8x
Domino's Pizza 7043 -- $24K 5.5% --
Burger King 6701 -- No Item 19 -- --
Wendy's 5552 $393K – $2.99M $2.23M 4.0% 0.8x
Little Caesars 3705 $446K – $1.82M No Item 19 6.0% --
KFC 3558 $135K – $3.77M $1.27M 5.0% 1.5x
Papa John's 3291 $261K – $853K No Item 19 5.0% --
Popeyes Louisiana Kitchen 3177 $505K – $3.92M No Item 19 5.0% --

Similar Brands to Explore

Other franchise brands with similar characteristics you may want to consider.

KFC
QSR
$135K-$3.77M
Investment
3558
Units
-8.1% Item 19
McDonald's
QSR
$1.47M-$2.64M
Investment
12772
Units
No Item 19
El Pollo Loco
QSR
$794K-$2.69M
Investment
498
Units
+11.7% No Item 19
Wendy's
QSR
$393K-$2.99M
Investment
5552
Units
Item 19
Popeyes Louisiana Kitchen
QSR
$505K-$3.92M
Investment
3177
Units
+12.5% No Item 19
Checkers/Rally's
QSR
$192K-$2.78M
Investment
504
Units
-11.7% No Item 19
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This report was generated from data extracted from official Franchise Disclosure Documents filed with state regulators. It is intended for informational purposes only and should not be construed as investment advice.

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© 2026 FDDIntel. All rights reserved. | Data sourced from public FDD filings.