KBP Brands, one of the largest franchise operators in the United States, has announced a significant expansion of its SONIC Drive-In portfolio with the acquisition of 78 locations across five states.
The transaction encompasses units in Ohio, Kentucky, North Carolina, Tennessee, and Virginia, boosting KBP’s total SONIC footprint to 164 locations across eight states. This rapid scaling officially positions KBP as the fourth-largest franchisee within the entire SONIC system.
Notably, the acquired units were previously corporate-owned and operated by SONIC, signalling a strategic refranchising move by parent company Inspire Brands to place established stores into the hands of a proven, high-volume operator.
Deepening the Inspire Brands Partnership
This transaction marks KBP’s second major SONIC purchase in less than two years, having first entered the system in August 2024. The deal further cements KBP’s robust relationship with Inspire Brands, which began in 2021 when KBP added Arby's to its extensive restaurant portfolio.
"We've had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase," said Mike Kulp, CEO of KBP Brands. "We look forward to expanding that with a larger footprint and additional operational efficiencies."
KBP Brands currently generates approximately $1.5 billion in annual sales. Kulp attributes the company's sustained two-decade growth trajectory to its core competencies: rapidly integrating new brands and locations, maintaining strong franchisor relationships, and executing highly data-driven operations.
Operational Integration and Leadership
The acquisition brings an additional 1,600 employees into the KBP organisation. Operationally, the expanded Drive-In business unit will continue to be spearheaded by Mark Everett, Executive Vice President of KBP, working in partnership with Chief Operating Officer Matt Hansen.
For SONIC, offloading corporate units to a mega-franchisee like KBP ensures operational rigour while allowing the franchisor to focus on broader brand strategy and menu innovation—such as its signature beverage customisation, the Smasher burger, and its indulgent dessert categories.
John Kelly, Brand President of SONIC, highlighted the strategic alignment between the two organisations:
"Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation. KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."
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