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Sonic Drive In Restaurants

A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else. A franchise agreement will usually specify the given territory the franchisee retains exclusive control over the area protection, as well as the extent to which the franchisee will be supported by the franchisor.

Sonic Industries Inc. was founded in 1973. In 1974, Sonic acquired the name Sonic Drive-In from Troy Smith, Sr., and started franchising. Smith used his more than 15 years of experience in the restaurant business to operate and develop the Sonic franchise program. A wholly owned subsidiary of Sonic Corp., it is based in Oklahoma City, Oklahoma and has locations all through the United States. The company’s storefronts lately got a facelift to give them a retro-futuristic look.

This franchisee has 200 employees. Sonic Drive In Restaurants provides drive-in hamburgers. For more than 50 years, Sonic Corp. has built a dominant position in the drive-in restaurant business. For providing good service some cost or fee structures are available like total investment of 710 thousand to 2.3 million, franchise fee is 30 thousand dollars, ongoing royalty fee is 1 to 5 percent, term of agreement is 20 years, and renewal fee for 10 years is 6 thousand dollars.

They are ranked in the Franchise 500 rank number 17 in 2005 according to the rankings in Entrepreneur magazine 2002-2006. Today, Sonic is the largest chain of drive-in restaurants in America. As a business, they continue to thrive, maintaining strong real sales growth, industry-leading customer frequency and high returns for their stockholders.

With all the continuous hard efforts of all the members of the firm has made it one of the best in the business and has helped them reach to the pinnacle where others can only imagine of reaching. Customer support is one of their primary objective and they strive very hard to fulfill this objective.

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