proven system. That being said, successfully running a franchise is not easy. One entrepreneur who owns 22 Sonic franchises said the franchisee's job is to ensure that each customer has the best experience possible, thereby making repeat visits more likely. To accomplish this, a franchisee must build his or her location(s): purchase equipment; hire excellent employees, make certain the products live up to Sonic's reputation, maintain a clean, inviting facility, and much more. In order to run 22 franchises, the entrepreneur runs his locations as limited partnerships, ensuring that a managing partner is on site at each location to keep day to day operations running smoothly. Some of Sonic's success may be attributed to its stringent requirements for selecting franchisees. Although franchisees must have excellent financial credentials and prior restaurant/entrepreneurial experience, the most important factor is that each franchisee fit into the Sonic culture. Sonic offers two types of franchises. The traditional franchise, which includes the full restaurant set-up, requires an initial investment of between $1.1 million and $2 million. Franchisees are required to pay 5 percent in ongoing royalty fees and a franchise fee of S45,000. A Sonic in a travel plaza, a mall food court, or a college campus are all examples of the non-traditional model. Because these set-ups do not include the drive-in and carhop features, initial investment is less. However, royalty and advertising fees still apply. For entrepreneurs looking for limited risk, franchises like Sonic are great options. The advantages are abundant, as discussed earlier. There is a high failure rate among small businesses. Entering into a successful franchise significantly cuts down on the risk of failure, although a franchisee does have to watch for market saturation, poor location choice, and other determining factors. However, there are also disadvantages; chiefly, franchisees are often required to follow a strict model set by the franchiser. For instance, in addition to prior restaurant experience, Sonic requires its franchisees to be financially and operationally able to open two or more drive-ins. These types of requirements may make it difficult for entrepreneurs who want to set their own terms. However, with Sonic's successful business model and brand equity, there is no shortage of individuals who would like to operate a Sonic franchise. Questions: Case Study Analysis Questions: Complete the following for the business case study. a. Mission Statement: b. Strategic plan c. Tactical plan d. Contingency plan Case Study Analysis (10 Marks] Sonic-A Successful Franchise SONIC with an Old-Fashioned Drive-In Experience For those who are nostalgic for the classic drive-in diner experience, the Sonic fast- food chain helps fill that need. Sonic offers customers a dose of nostalgia with its 1950s-style curbside speakers and cathop service. As the United States' largest drive in fast-food chain, Sonic offers a unique and diverse menu selection that helps set it apart from a highly competitive fast-food franchise market. Founder Troy Smith launched the first Sonic Drive-In (known then as Top Hat Drive-In) in Shawnee, Oklahoma, in 1953 as a sole proprietorship. He later added a partner, Charlie Pappe, and eventually turned the business into a franchise. Despite its traditional feel, the company has seized upon new trends and opportunities to secure more business. Customers at Sonic frequently eat in their cars or at tables outside the restaurant. However, Sonic has begun building indoor dining prototypes in colder areas to test whether this will entice more customers to eat at its locations. The prototype still makes use of the restaurant's traditional patio but encloses it to protect customers from the elements. Each of these restaurants maintains its carhop and drive-thru features in order to retain the "Sonic experience. Today, Sonic is a publicly traded company and ranks among the top 30 restaurants among Franchise Times' Top 2001. Franchising is an appealing option for entrepreneurs looking to begin businesses without creating them from scratch. In the case of Sonic, when a franchisee purchases a franchise, he or she is getting a business that already has a national reputation and a national advertising campaign. The Page-2: Case Study Analysis company also offers its franchisees tremendous support and training. As a pioneer, Troy Smith was required to innovate, as a Sonic franchisee, one steps into an already proven system That being said, successfully running a franchise is not easy. One entrepreneur who owns 22 Sonic franchises said the franchisee's job is to ensure that each customer has the best experience possible, thereby making repeat visits more likely. To accomplish this, a franchisee must build his or her locationis purchase equipment, hire excellent