Student Answer: There are a few competitive advantages that Sonic has over other fast food franchises. Some of Sonic’s success may be attributed to its stringent requirements for selecting franchisees (Ferrell, Hart & Ferrell 2009). Sonic has a few different requirements than other fast food restaurants when it comes to franchising out. Sonic requires that you have background in the restaurant business as well as being financially fit for the franchise. Sonic does not want someone that has never worked for or owned a fast food business. This is a great choice because if you have never worked at a restaurant you may not know the ins and outs and what it takes to make the restaurant successful. Owning a restaurant is much rare than working at
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In order for you to open one store you have to enough money to open two. If you only have enough money to open one restaurant you may be out of luck. This somewhat sucks because maybe if you were able to open one and make enough money, you could open you second Sonic restaurant. Now you have to look elsewhere to franchise out. This does not mean that there are very few people looking to franchise a Sonic location. With Sonic’s successful business model and brand equity, there is no shortage of individuals who would like to operate a Sonic franchise (Ferrell, Hirt & Ferrell 2009). Being a millionaire just to become more of a millionaire seems stupid. Many people may thing that Sonic franchising model is not fair and they may be right. Sonic just seems to think that if you are a successful millionaire that at some point in life has owned a restaurant then they will be more successful than someone that has little or no experience and only has enough money to get one store up and running. This is the way Sonic runs its franchises this may be different for other fast food restaurants. This could be a great reason that Sonics rarely close a restaurant down. Sonics in even the poorest neighborhoods seem to always have business. This is also because the owner takes pride in their stores and makes sure everything is kept up, from the inside to …show more content…
You are an executive involved with Sonic’s franchise operations. Sonic franchisees have become increasingly popular. On the other hand, you have heard about some notable cases of misconduct at a few franchisees. You think making the franchise requirements more stringent and/or increasing the initial investment will help the company maintain additional control over its franchise operations and increase profit. Develop a list of requirements for opening up a new Sonic franchise that will be distributed to new entrepreneurs wanting to open up their
In order for you to open one store you have to enough money to open two. If you only have enough money to open one restaurant you may be out of luck. This somewhat sucks because maybe if you were able to open one and make enough money, you could open you second Sonic restaurant. Now you have to look elsewhere to franchise out. This does not mean that there are very few people looking to franchise a Sonic location. With Sonic’s successful business model and brand equity, there is no shortage of individuals who would like to operate a Sonic franchise (Ferrell, Hirt & Ferrell 2009). Being a millionaire just to become more of a millionaire seems stupid. Many people may thing that Sonic franchising model is not fair and they may be right. Sonic just seems to think that if you are a successful millionaire that at some point in life has owned a restaurant then they will be more successful than someone that has little or no experience and only has enough money to get one store up and running. This is the way Sonic runs its franchises this may be different for other fast food restaurants. This could be a great reason that Sonics rarely close a restaurant down. Sonics in even the poorest neighborhoods seem to always have business. This is also because the owner takes pride in their stores and makes sure everything is kept up, from the inside to …show more content…
You are an executive involved with Sonic’s franchise operations. Sonic franchisees have become increasingly popular. On the other hand, you have heard about some notable cases of misconduct at a few franchisees. You think making the franchise requirements more stringent and/or increasing the initial investment will help the company maintain additional control over its franchise operations and increase profit. Develop a list of requirements for opening up a new Sonic franchise that will be distributed to new entrepreneurs wanting to open up their