Take the High Road with Sonic Where We Are p.7 Who We Are Our Customers Can’t Help Falling in Love At a typical SONIC Drive-In, customers park in colorful canopy-covered spaces and push our iconic red button when they are ready to place their orders using our intercom system. Friendly Carhops deliver our delicious food and drinks to our customers car-side, but at most SONIC locations, customers may also enjoy patio and indoor patio dining as well as drive-thru service. This is how we SONIC ! SM SONIC Drive-Ins feature signature menu items such as footlong quarter pound coneys, six-inch premium beef hot dogs, hamburgers, wraps, handmade onion rings, tots and a full breakfast menu that is served all day. We are known for our variety of Real Ice Cream treats and fountain drinks, too, such as cherry limeades, real fruit slushes, shakes and blasts. With over 1,000,000 flavor combinations, SONIC truly is Your Ultimate Drink Stop®. 60+ Years of being America’s Drive-In Experts! As the nation’s largest drive-in chain, SONIC® has successfully served up hot, fresh, made-to-order drive-in food for more than 60 years. Born in 1953 in Shawnee, Oklahoma, SONIC is authentically mid-century and modern, a classic that continues to innovate. Today, we franchise and operate the largest chain of drive-in restaurants in the country, with more than 3,500 SONIC Drive-Ins in nearly every state. Our drive-in experience, together with a unique menu and friendly, personalized Carhop service, positions SONIC as one of the most differentiated concepts in the quickservice restaurant (QSR) industry, with a high degree of customer loyalty. Circa 1978 Menu Heaven All The Time With a menu that offers so much variety, SONIC®’S customers keep coming back for more during all of SONIC’s five balanced and distinct day-parts. Unlike other concepts that have one or two strong day-parts, our SONIC brand treasures work for you throughout the day. Tasty breakfast, lunch, afternoon dinner and evening menu items are served fresh all day. Morning Evening 16% Afternoon 48% Lunch/Dinner Based on SONIC System Data; Trailing 12 months endingFebruary 2013 Smiling Happy People NETWORK. TEAM. SUCCESS. SONIC® is all about relationships – relationships with our customers, employees, fellow franchisees and vendor partners. The SONIC culture is a collaborative one focused on teamwork and building lasting relationships every step of the way. SONIC® guides you in securing financing, provides franchisee training and encourages franchisee mentorships. We care about your future and helping you reach your goals. With at least 12% company drive-ins, we share a mutual interest in staying current on the latest restaurant and product innovations and ensuring customer satisfaction. Some of our best ideas come from franchisees, like Sean Robertson and they are valued in all we do. Where We Are SONIC® Nation Multi-Unit Opportunities Multi-Unit & Small Town Opportunites Small Town Opportunities & Multi-Unit Acquisition Along with our signature menu and one-of-a-kind drive-in experience, SONIC has a proven franchise business model that delivers consistently. We’ve grown steadily over the past 20 years because we’ve stayed rooted in the fundamentals while evolving to meet the challenges of an ever-changing quick service restaurant industry, shifting economy and changes in consumer tastes and preferences. More than 3,500 DRIVE-INS and room to grow with you. Marketing What’s love got to do with it? EVERYTHING. SONIC®’s Vision: Become America’s mostloved restaurant brand. We connect with our customers across all day-parts. We create crave-able food our customers fall in love with. We develop great people and great tools. We thoughtfully plan market by market strategy. We focus on operational consistency that maximizes drive-in profits. We put our customers at the heart of all we do, and by doing so, inspire some of the most loyal, frequent customers in the Quick Service Restaurant business. Simply put, we work hard to ignite passion for the SONIC brand. Source: BSG – SONIC Brand Tracker, February 2013 We’re Taking SONIC to new heights ® JOIN US ON THE JOURNEY. While we’re America’s largest drive-in chain, we’re not stopping there...SONIC® has made tremendous strides as a national brand with a significant increase in national television advertising. This is designed to increase customer awareness of the SONIC brand and our delicious food and drink variety, nationwide. YOU CAN’T GET US OUT OF YOUR MIND SONIC®’s branding efforts are immediately recognizable and memorable, working on multiple levels to drive sales and build customer loyalty. • • • • Our campaigns showcase the on-lot experience. They can be integrated across multiple day-parts. Ad story lines are food focused and a natural fit with social media. Our highly popular Two Guys ads are lighthearted, with humor that appeals to a wide audience. Owning Your Own SONIC Is Just Around The Corner Any Way You Want It Multiple development choices to help you succeed SONIC® has plenty of options for flexing your development and entrepreneurial muscles. From building footprint, to seating, to menu, we provide franchisees with options designed to meet a variety of needs and situations. Like our food, it’s a development strategy built on choice and flexibility. Classic SONIC® At a traditional SONIC Drive-In, customers park in canopy-covered spaces and place orders through a intercom system and receive food from a skating carhop. INDOOR Patio Choices for Unique Situations Patio enhancements provide options to address a variety of situations. OPTIONS FOR SMALLER LOTS OR BUDGETS Because at SONIC,® we realize that one size does not fit all. Adapt, Reuse and Save – CONVERSIONS Take what’s already there and make it better. Lower investment costs, faster permitting and construction are just some of the potential benefits found in converting vacant QSRs or other existing retail space. Take a DRIVE on main street TO YOUR VERY OWN SONIC® SONIC® got its start on Main Street America and opportunity still knocks in small towns. We pride ourselves in becoming a valued partner in the community while serving up made-to-order hamburgers, hot dogs, tots, real ice cream shakes and fun to customers! SONIC® Is Popping Up All Over Push the envelope and boldly go where SONIC® isn’t traditionally found. Universities, airports, travel plazas, convenience stores and stadiums are just a few of the non-traditional development sites well worth exploring. Development Roadmap ng ni Tr ai Si te Se le ct Pr og io n ra m Here’s a high-level overview that outlines the steps to owning your own SONIC® franchise. OPEN! Shift into high gear We’re here to help you at every step of the process. SONIC provides enterprise and planning assistance to franchisees in the following areas*: Real Estate Construction Training Operations Marketing Business Planning Human Resources Franchisee to Franchisee Mentoring *Disclaimer: Please see the Franchise Disclosure Document and the Sonic License Agreement for a description of services SONIC is required to provide. The section above is not intended to modify the descriptions and requirements contained in the Franchise Disclosure Document, the Development Agreement or the Sonic License Agreement. Qualifications And Now for the Nitty Gritty Requirements to Own a SONIC Franchise We believe that SONIC® offers a very unique opportunity in the restaurant and franchise industries. With a 60-year track record of success, a robust pipeline of unique products, a five day-part strategy, a clear vision for future growth and leadership dedicated to your success, the SONIC story is compelling. Franchise and Royalty Fees The franchise fee is $45,000, with a total investment for a SONIC Drive-in ranging from $1.07-1.96 million. The term of a SONIC franchise is 20 years, plus a 10-year renewal option. Royalty fees are ascending based on the level of sales up to 5 percent. SONIC® is Small Business Administration (SBA) approved. FINANCIAL: Small Town* 1 Store 3 Stores 4+ Stores LIQUIDITY $200,000 $500,000 $1,500,000 $2,000,000 NET WORTH $500,000 $1,000,000 $1,500,000 $2,000,000 EXPERIENCE: • Active ownership in your SONICs • Restaurant background required by at least one operating partner • Ability to develop, lead and inspire a management team • Strong entrepreneurial skills • Community Organizer • Retail Sales *Disclaimer: Please see the Franchise Disclosure Document and the Sonic License Agreement for a description of services SONIC is required to provide. The section above is not intended to modify the descriptions and requirements contained in the Franchise Disclosure Document, the Development Agreement or Sonic License Agreement. and the Sonic License Agreement. *Note: Market types are determined by SONIC based on the number of drive-ins in the market and the level of advertising support. Market classifications are updated periodically. *Small Town requires the ability to secure financing in towns with 12,000 in population or less. Now let’s get Started If you’re ready to serve delicious food and drinks in a town near you, then let’s begin the adventure. We can help you drive happy customers to your very own SONIC®! To inquire about Your Next Steps visit us @ www.SONICFranchises.com 300 Johnny Bench Drive Oklahoma City, OK 73104 SonicFranchises@sonicdrivein.com © 2015 America’s Drive-In Brand Properties LLC.