Ted Kergan: Kergan Brothers Sonic CEO Talks Life, Business, and Spending Decades Finding His Brother’s Killers

Published: Dec. 20, 2019, 9:26 p.m.

Ted Kergan, one of Sonic’s most successful franchisees in the U. S., began his career with SONIC in 1977 as general manager of an Alexandria, LA location. Today, Ted is CEO of Kergan Bros. Sonic, which owns 60 Sonic locations across Central and South Louisiana, and employs more than 4,000 people each year. In 2015, Ted was bestowed the Troy Smith Hall of Fame Award given to a franchisee who has worked with Sonic for a noteworthy duration and has made a significant contribution in terms of leadership, growth, positive influence, and brand image. Ted's love for Sonic is palpable, and he attributes his success in the company to his dedicated and longtime employees who make it happen. Between his managers and assistant managers, the employees collectively bring over 1000 years of experience to the job. In 2015, Ted was bestowed the Troy Smith Hall of Fame Award given to a franchisee who has worked with Sonic for a noteworthy duration and has made a significant contribution in terms of leadership, growth, positive influence, and brand image. Pictured from left: Sonic CEO Cliff Hudson, Ann Kergan, Ted Kergan. Sonic is a fun company and offers a solid business plan. Troy Smith founded Sonic in 1953 and always gave his managers the opportunity to be equity partners. Ted Kergan has followed Smith's example and this generosity has led to lasting employee loyalty. There are 3600 Sonic locations in the U. S. and successful managers can make around $150,000 per year; the most successful manager in the U. S. is reported to make $250,000 per year. Ted recommends that anyone looking to purchase a franchise opportunity should take a close look at the business plan and select a company that has a name recognition so that people will flock to the door the day it opens for business. Many good concepts are unknown to the general public and it can be risky investing in an unknown name that will not generate adequate traffic. Sonic was purchased by Inspire Brand in 2018 for $2.3 Billion; Inspire also owns Arby's, Buffalo Wild Wings and Jimmy John's Restaurants. Economies of scale are recognized in food purchases, attorney costs, etc. by franchisees associated with Sonic and Inspire, and Ted finds the costs associated with franchise royalties are greatly outweighed by savings the franchisees enjoy. Kergan Bros. Sonics has sponsored the annual Sonic Christmas Parade in Lafayette since 2003. An annual and beloved affair with over 70 participants, the parade was originally started by the Abdalla family in 1962. Santa waving to the crowd in the Sonic Christmas ParadeThe Sonic Christmas Parade is an annual event held free for the community. Ted also has a deeply moving and personal story to share, about his brother, Gary, who originally got Ted to move to Louisiana to join the Sonic team. Gary’s life came to an untimely and mysterious end on November 28, 1984. Ted’s journey to find out what happened to his brother is recounted in the compelling book, “My Brother’s Keeper, A Thirty-Year Quest to Bring Two Killers To Justice,” written by Chris Russo Blackwood. Ted Kergan was born in Detroit, Michigan and was raised with his older brother and sister by his mother. Ted's father died the day after he was born and his mother worked hard as a seamstress to make ends meet. The children were close, especially Gary and Ted, who had their own special language where they would communicate using only the first letter of words. Gary meant the world to Ted and was always there for him to guide and protect him. When Ted was fifteen, his mother couldn't sew any more due to arthritis, and she sold their family home so that she could raise funds to purchase a franchise business. Ted accompanied her and the opportunity to learn about business ignited a fire in him. He recounted that he attended college for one day and then dropped out to work, because of necessity and also because he was more interested in making money.