Twin Peaks
Twin Peaks offers lodge-themed sports entertainment restaurants with a full bar and American pub-style cuisine. Known for its Twin Peaks Girls in theme-related uniforms, it operates under the Twin Peaks brand in the full-service restaurant industry.
Twin Peaks franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Twin Peaks® restaurant ranges from $2,959,000 to $7,634,000. This includes an amount ranging from $278,400 to $302,600 that must be paid to the franchisor or affiliate. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on whether you commit to develop a single Restaurant or multiple Restaurants. For a single Restaurant, the initial franchise fee is $50,000 [p.23]. If you enter into an Area Development Agreement to develop multiple Restaurants, the development fee includes 100% of the initial franchise fee for the first Restaurant and 50% of the initial franchise fee for each additional Restaurant [p.25]. This isn't specified in the excerpts for a single commitment beyond the first Restaurant.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is a continuing weekly payment that the franchisee must make to the franchisor, as detailed on page [p.165]. Regarding advertising fees, franchisees are required to pay an advertising fee based on a percentage of net sales, which supports specific advertising purposes as outlined on pages [p.86] and [p.37].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, the franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors. This means there are specific reasons why the franchisor might deny a transfer request, though the exact criteria are not detailed in these excerpts.
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts. The provided pages only detail the conditions under which the franchisee can terminate the agreement, not the franchisor's grounds for termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD indicates that you need to meet minimum net worth, liquid asset, and equity/debt ratio requirements set by the Franchisor. These standards are part of the "Standards for Restaurant developers" mentioned on [p.134]. However, specific numbers or details about these financial requirements are not provided in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive or protected territory. The franchise agreement does not provide territorial exclusivity, and you may face competition from other franchisees, outlets owned by the company, or competitive brands controlled by it [p.42]. Additionally, your operation is designated as "address-only" with no territorial rights whatsoever [p.227].
What training and ongoing support does the franchisor provide?
The franchisor provides an Opening Training Team consisting of about 30 trained representatives who stay on-site for approximately 26 days to offer pre-opening and opening training, supervision, and assistance [p.24]. This support is provided for the opening of your first three Restaurants unless additional assistance is requested or deemed necessary by the franchisor [p.173]. For ongoing support, initial training is given to the initial Operator, Unit General Manager, and Shift Managers before opening the Restaurant [p.24], with continuous training for Unit General Managers until their restaurant qualifies as a certified training restaurant. The Manager In Training Program can last up to 17 weeks depending on job duties [p.24].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 74 franchised Twin Peaks Restaurants operating in the US, with 69 being open and operating for the entire fiscal year 2024. This means that 5 out of the 74 franchised outlets had closed or been terminated as of that date [p.61].
Does the franchisor share any financial performance or earnings information?
The franchisor can provide financial performance information under certain conditions, such as offering actual records of an existing outlet or supplementing the information provided in Item 19. However, other than the specific financial performance representation figures given in Tables 1 and 4 (which do not include costs like sales, operating expenses, rent/real estate), no additional financial performance or earnings projections are shared [p.61, p.62].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the menu items, products, and services that the franchisor has expressly approved in writing [p.50]. You must purchase from the franchisor or from suppliers they approve or designate, including specific categories like fixtures, furniture, equipment, food products, uniforms, and advertising materials [p.25].