Franchising Sonic Drive-In Restaurants

A franchise is a legal agreement between franchisers and franchisees that consents use of the franchise’s trademark and trade name or marketing plan

Our concentration will be fast service with a quality product, but we also plan to acquire new customers who prefer a sit down meal.

Their strategy was about customer service rather than profit or revenue. The growth was built on creating new products for the existing target market.

While doing some research I found that a franchise agreement is a binding legal contract that is signed between a franchisor and franchisee. A franchisor is the company owning the rights to grant franchises to franchisees, while a franchisee is a person or entity who is given the right to conduct business by a franchisor or licensor. The most important definition however is that of a franchise which is an authorization granted by the government or company to an individual or group allowing them to carry out certain commercial activities.

Sonic drive in is a fast food restaurant with a variety of menu options. It consists of a drive thru, and a variety of drive in stalls it has the option of calling in, to place an order. During summer and spring it's open from 7am to 12am and during winter and fall it is open from 7am to 11pm.. Anybody can eat at Sonic if you are hungry for some fast food. Sonic originated in Oklahoma City, Oklahoma and was ranked 10th in the QSR Magazine ranking the top 50 quick service and fast food restaurants in the nation. Sonic is an exceptional fast food restaurant with a wide variety of different foods and drinks, although there could be a reduced wait time, a cleaner environment, and better attitudes from employees towards their customers.

The franchiser can attain rapid growth for the chain by sign- ing up many franchisees in many different locations.

You pay a franchise fee and you get a format or system developed by the company (franchisor), the right to use the franchisor’s name for a limited time, and assistance. For example, the franchisor may provide you with help in finding a location for your outlet; initial training and an operating manual; and advice on management, marketing, or personnel. The franchisor may provide support through periodic newsletters, a toll-free telephone number, a website, or scheduled workshops or seminars.

Another ability and privilege that comes with a franchise is that the financial risk of any financial disaster is reduced and the consequences wouldn’t be as severe because the store is backed up by a large well-established company that acts as a safety net for Penny Thomas’s store, which is helpful and the store can feel more secure. On the other hand, marketing budget was set at $10,000, which can cover all the costs of the grand opening adequately, which is good for the starting company because budget is tight for any new project and efficiency is a key player in making the starting of this store follow more smoothly. Marketing capability wise, Penny Thomas enjoys Marble Slab’s already existing prominent name, so the store isn’t a new store that the target market must discover and learn about. Therefore, the franchisor made Thomas’s promotional task easier, and many existing Marble Slab customers will come to this location. As well, Marble Slab is already known for its high quality products that many customers around the 37 Ontario locations enjoy and crave. Thomas’s operational activities offer a great deal of mainly quality, freshly made ice-cream, with the option of letting the customer customize their purchases with a choice of toppings blended into their ice-cream flavour of choice, these

With a company that has been around over a century the strategies it uses change an develop with the society. Since they had begun they have rapidly grown, within the first 30 years of their business

needs. As of December 31, 2016, the firm has a cash and short-term investment balance of $417.7 million

Operations – Church & Dwight have peacefully existed over the past 60 years with sustained growth and profitability because it virtually held the market in the palm of its hands as other companies searched for ways to enter the household and personal care product lines. As a result of the constant forces

When they first started they only accepted people that had the amount of money upfront to invest because they knew banks would not help (Welch). This also allowed the franchisee and the corporation to make a profit right away instead of having to pay a loan back. The third reason that they were able to succeed is because they kept the business simple. They only decorate the decor with red and white stripes. They also do not add anything else to the menu other than burgers and fries. They do not want to decrease the quality of their food by adding additional items to the menu, and they also want to be able to only serve fresh ingredients. For years people have asked them to add different items to their menu like milkshakes, they feel that they will not serve anything frozen so they would have to keep fresh milk and ice cream (Welch).

Since all three of these restaurants belong to national franchise chains they are required to pay franchise fees and royalty fees each month. The manager at Sonic Drive-In stated that their franchise and royalty fees are determine by their net sales each month. They are required to pay 15 percent of their net sales for franchise fees and 10 percent of their net sale for royalties. The manager at Sonic Drive-in also Stated that they are doing very good if they can profit 15 percent of their sales each month after paying all the expenses, and the best way to do that is by controlling the inventory and labor expenses. The managers of McDonalds and Kentucky Fried Chicken were unwilling to release any of their business information to

loves them by today. The start to there franchising really began when they opened there

Advantages & Disadvantages of Franchising Franchising is ‘a continuing relationship in which the franchisor (the owner of a company) provides a licensed privilege to the franchisee (the buyer) to do business and offers assistance in organising, training, merchandising, marketing, and managing in return for a consideration. It is a form of business by which the franchisor of a product, service, or method obtains distribution through affiliated dealers (franchisees).’ (http://www.business.gov) A franchise is essentially a replica of an existing business. When you purchase a franchise, you buy the rights to use the parent company's name and to sell its product or service in exchange for an up-front franchise fee and ongoing royalties, which