Sonic Corp. (NASDAQ:SONC - News) today responded to remarks in the press yesterday concerning the company’s franchisees, who were used to illustrate the problems of a tightening credit market. As the company pointed out last week in clarifying a national news story about GE Capital, Sonic has not been informed of any cut-back in franchisee financing and continues to have other financing sources beyond GE Capital, which represents less than 10 percent of the lending to Sonic franchisees. Sonic’s franchisees, in fact, ordinarily rely on multiple lending sources for their capital needs. As such, the company believes the brand remains poised to continue its expansion into new markets and that Sonic franchisees remain on course to complete more drive-in retrofits in the coming year.
Sonic concurs that the current state of the economy is challenging and could become more challenging in the future. Nevertheless, Sonic and its franchisees, who comprise some of the most successful small businesses in America, are positioned for future growth and increased development.