Published on 3 Feb 2023 Time 10 min read Last update by 28 May 2024

Twin Peaks Franchise Analysis for 2024

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Twin Peaks Franchise is a chain of sports-themed restaurants and bars in the United States. Founded in 2005 by Randy DeWitt and Scott Gordon in the Dallas, Texas area, the chain has grown to over 80 locations across the U.S. The concept of Twin Peaks was born when Randy DeWitt and Scott Gordon, who were working in the restaurant industry, became frustrated with the lack of options for men looking for a casual, yet upscale dining and social experience. They wanted to create a restaurant that would appeal to men, but also be welcoming and comfortable for women.

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Inspired by the mountain range, they came up with the name Twin Peaks, envisioning a casual mountain-lodge atmosphere with a sports-bar feel. They opened their first location in Lewisville, Texas and over the next few years, the chain expanded rapidly, opening locations across the United States.

The chain is known for its unique atmosphere, featuring a mix of rustic and modern elements, with a focus on natural wood and stone. The menu features a variety of American cuisines such as burgers, wings, and sandwiches, as well as a selection of draft beers and cocktails.

Twin Peaks has become a popular destination for sports fans and casual diners alike, offering a unique and enjoyable dining experience. With its continued expansion, Twin Peaks has established itself as a prominent player in the restaurant industry

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How Is Twin Peaks Franchise Positioned in the Food and Beverage Industry?

The casual dining industry is a highly competitive and dynamic market, with an estimated total market value of around $230 billion in the United States. The industry includes a wide range of competitors, from large national chains to independent local restaurants. It’s a sector that has been growing for the past decade and it is expected to continue to grow in the next five years.

The casual dining industry is characterized by a wide range of restaurants that offer a variety of menu options and price points. These restaurants typically have a full-service format and a casual atmosphere.

According to a research report by Technavio, the casual dining market is expected to grow at a CAGR of more than 3% during the period 2019-2023. This growth is driven by a number of factors, including an increase in consumer disposable income, changes in consumer lifestyle and eating habits, and the rising popularity of online ordering and delivery services.

Additionally, the report predicts that the rise of the “experience economy” will continue to drive growth in the casual dining industry, as consumers increasingly seek out unique and memorable dining experiences.

The casual dining industry also employs a large number of people, with an estimated 15 million people working in the sector, making it one of the largest employers in the U.S. The industry also generates significant tax revenues for local, state, and federal governments and has been a major contributor to the economic growth in the U.S.

Overall, the casual dining industry is a significant and growing sector in the U.S. economy, with a wide range of competitors and a diverse range of menu options and price points.

How Much Is a Twin Peaks Franchise?

The initial Twin Peaks Franchise Fee is $50,000. You have to pay this upfront fee when opening a Twin Peaks franchise.

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Twin Peaks Franchise Cost

The estimated total investment necessary to begin the operation of a Twin Peaks Franchise ranges from $3,622,000 to $5,446,000. The following costs are part of the upfront costs included in the initial investment for Twin Peaks. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Twin Peaks franchise in 2023.

Type of expediture Amount To Whom Payment Is to Be Made
Conversion Space New Construction Space
Initial Franchise Fee $50,000 $50,000 Us
Leasehold Improvements and Deposits $546,000 to $2,777,000 $2,137,000 to $3,479,000 Contractor
Equipment, Furniture, Fixtures and Signage $647,000 to $1,022,000 $1,028,000 to $1,268,000 Suppliers
Liquor License $1,000 to $14,000 $1,000 to $14,000 Government agencies, lawyers, other third parties
Business Licenses and Permits $3,000 to $4,000 $3,000 tp $4,000 Government agencies, lawyers and other third parties
Initial Training Costs $40,000 to $60,000 $40,000 to $60,000 Employees and Suppliers
Opening Training Team Costs $175,000 to $200,000 $175,000 to $200,000 Us or our affiliates
Initial Inventory and Supplies $41,000 to $108,000 $41,000 to $108,000 Suppliers
Professional Services $8,000 to $20,000 $8,000 to $20,000 Accountants, lawyers, architect, site evaluation, etc
Restaurant Opening Promotion $10,000 $10,000 Suppliers
Insurance $45,000 to $75,000 $45,000 to $75,000 Insurance Broker
Additional Funds for Initial 3-Month Period $84,000 to $158,000 $84,000 to $158,000
TOTAL $1,650,000 to $4,498,000 $3,622,000 to $5,446,000

Twin Peaks Franchise Requirements

Restaurants are 6,000-8,000 square feet with outdoor seating and 150+ parking spaces. Prime locations are located in high-traffic areas with above-average daytime and residential demographics and have excellent visibility with easy access. Groups and/or individuals are required to display a minimum of $2,000,000 in liquid assets combined with an overall net worth of $5,000,000, as well as the ability to secure third-party financing.

Ongoing Fees

Royalty Fee: 5% of Gross Sales

Brand Fund Contribution: Up to 4% of Gross Sales, currently 2.5%

Local Marketing Expenditure / Advertising Cooperative: 0.5% of Gross Sales

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How Much Do Twin Peaks Franchise Owners Make?

Data for Franchised Twin Peaks Restaurants for Fiscal Year 2021

Average AUV $5,218,321
Median AUV $5,049,359
% / # of Franchised Restaurants that attained or surpassed average AUV 47.1%
Highest AUV $11,222,151
Lowest AUV $2,337,808

2021 Twin Peaks Median Franchise Sales: $5,049,359

Initial investment (midpoint) %Profit margin of median franchise sales Estimated Profits Time to recoup investments
$4,534,000 10% $504,935 10.5 years
15% $757,403 7.5 years
20% $1,009,871 6 years

Based on the median sales provided by Twin Peaks franchise locations, at an average of a 15% profit margin it will take around 7.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 15% profit margin, which would elongate getting a return on your investment.

Many factors affect the sales, costs, and expenses of your Franchised Store, such as the Franchised Store’s size, geographic location, menu mix, and competition in the marketplace; the presence of other Food and Beverage stores; and the extent of market penetration and brand awareness that Twin Peaks stores have attained in your market. Also, the quality of management and service at your Franchised Store are major factors.

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Is the Franchise Profit Worth the Franchise Cost?

To assign a valuation multiple for Twin Peaks franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.

Under $5 Million Net Sales

  • Estimated Selling Price = Net Sales * 0.55

When you go to sell a Twin Peaks franchise based on the median multiple of .55 and net sales of $5,049,359, it would sell for $2,777,147. This is significantly lower than the midpoint investment of $4,534,000 for a new build. You might want to look first at converting a second generation restaurant to Twin Peaks.

The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.

How Many Twin Peaks Units Have Opened and Closed?

Outlet type Year Outlets at the Start of the Year Outlets at the End of the Year Net Change
Franchised 2019 53 56 +3
2020 53 52 -4
2021 52 57 +5
Company-Owned 2019 30 28 -2
2020 28 26 -2
2021 26 28 +2
Total Outlets 2019 83 84 +1
2020 84 78 -6
2021 78 85 +7


Twin Peaks (Franchisor) Income Statement Key Insights

December 26, 2021 December 27, 2020
Royalty fees $13,300,223 $8,642,988
Franchise fees 234,841 803,198
Marketing fees 9,623,142 6,083,697
Other revenues 720,834 1,322,419
Total revenues 23,879,040 16,852,302
Marketing expenses 9,559,203 6,933,228
Operating expenses 785,148 716,001
Income from operations 13,534,689 9,203,073
Net Income 13,534,689 9,203,073

Twin Peaks is a very profitable business for the franchisor with retained earnings of $13.5 million in 2021. Compared to $9.2 million in 2020, they saw an increase of 50% from 2020 to 2021. This is a good indication of high growth as a company overall.

FAT Brands Quarterly Report Review

FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) (“FAT Brands” or the “Company”) reported its fiscal second quarter 2022 financial results for the 13-week period ending June 26, 2022. The company, which owns several franchise restaurant brands, reported strong unit development and profitable revenue growth, with total revenue of $102.8 million in the second quarter of 2022 compared to $8.3 million in the second quarter of 2021. The growth was attributed to the acquisition of Global Franchise Group in July 2021, the acquisition of Twin Peaks in October 2021, the acquisition of Fazoli’s and Native Grill & Wings in December 2021, as well as the continuing recovery from the negative effects of the COVID-19 pandemic on royalties from restaurant sales.

Andy Wiederhorn, President and CEO of FAT Brands, commented on the results: “The second quarter marked yet another strong performance for FAT Brands, characterized by robust unit development and profitable revenue growth. After a very active acquisition strategy in 2021, I am particularly pleased with the momentum of our organic growth strategy for the first half of this year.”

“Year to date, we have opened 62 restaurants, including 26 that opened in the second quarter, and remain on track to open 120 new restaurants in 2022, which represents a 5% unit expansion year over year. We are seeing strong new franchisee activity as well as continued demand from existing franchise partners to develop other brands within our portfolio, which is very encouraging as we look beyond our current unit development pipeline of over 900 locations representing 50% EBITDA growth over the next several years.”.

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FAT Financial Results

The company also highlighted the acquisitions it made in the year. “As we have stated, 2022 is a year to digest the acquisitions of 2021 and capitalize on the potential synergies they present. That being said, our acquisition strategy is one of the core pillars of FAT Brands, and we will continue to evaluate and capitalize on potential candidates as we see fit.

“In May 2022, we saw great value in acquiring the Nestlé® Toll House® Café by Chip® Franchise Business, which will be rebranded as Great American Cookies. This tuck-in acquisition not only increases our foothold in the dessert category, but also allows us to continue to grow our manufacturing business. We anticipate the first store conversion to be completed in September 2022 and we look forward to increasing the profitability of the franchisees that have joined us through this acquisition via our increased scale and the cost savings generated from our manufacturing facility.”

In terms of financial results, the company reported a net loss of $8.2 million or $0.50 per diluted share compared to $5.9 million or $0.48 per diluted share in the second quarter of 2021. Additionally, the company reported an adjusted EBITDA of $29.5 million compared to $2.1 million in the second quarter of 2021 and an adjusted net loss of $3.1 million, or $0.19 per diluted share, compared to $1.1 million, or $0.09 per diluted share in the second quarter of 2021. The company also reported system-wide sales growth of 284% in the second quarter of 2022 compared to the prior year quarter and system-wide same-store sales growth of 5.6% in the second quarter of 2022 compared to the prior-year quarter. With the strong performance in the second quarter, the company remains optimistic about its future growth and expansion plans


Twin Peaks is an interesting opportunity in the Food and Beverage industry that pays back in a reasonable amount of time. The franchisor also has strong financials that help it succeed.

While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Food and Beverage industry.

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