At Twin Peaks is more than another sports bar with good wings. Twin Peaks comes with a unmistakable mountain lodge ambiance and frosty draft beers. Of course, their also widely known for the attractive and sassy Twin Peaks girls all year round. If this sounds like an appealing franchise business, you’ll be glad to learn Twin Peaks is open for franchising.
How much does it cost to open Twin Peaks? This chain of sports bars requires a minimum of $2,000,000 in liquid capital and an overall net worth of $5,000,000. The typical investment is between $1,520,800 to $5,106,500 with an above average franchise fee of $50,000. For example, you could get into a Buffalo Wild Wings with a franchise fee half that price at only $25,000.
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Financial Requirements and Fees
|Fees / Expenses
|$1,520,800 to $5,106,500
To top all of the financial requirements mentioned, Twin Peaks also charges a royalty fee of 5% and an ad royalty fee of 2.5%. The term of the agreement to run a Twin Peaks is 15 years and the franchise is renewable.
As you know, the franchise fee for Twin Peaks is $50,000. But did you know the franchise fee at Hooter’s is even more? You’ll pay a staggering $75,000 or 50% higher franchise fee with Hooter’s. But when you look at the average store sales, you may find the the initial investment is worth it.
Average Sales / Revenue per Year
According to the publicly available data, Twin Peaks has global sales of more than $387 million in 2022 with an average unit volume of $5,218,321. Their sales growth was up to 47.8% over the previous year in 2021.
Twin Peaks’ main competitor is Hooters and in comparison has total revenues of $835 million for 303 restaurants with an average unit volume is $2,755,775.
As you can see the average unit sales volume of a Twin Peaks location was 89% higher than the typical Hooters in 2022. This amounts to more than $2.4 million in average annual sales per store. That’s a whole lot more beers, wings, and other meals being served.
Twin Peaks Franchise Facts
|Food and Beverage
In 2005, co-founder and former CEO of Twin Peaks Randy DeWitt wanted an upgraded take on Hooters’s concept. And if anyone isn’t familiar with Hooters, they’re a sports bar that has been popular for their beer, wings, and Hooters girls who are uniformed attractive waitresses. DeWitt’s upgraded concept was Twin Peaks with its mountain lodge design and ambiance along with a menu that covers more than just wings, and their own version of Twin Peaks girls that are dressed in plaid cropped shirts and khaki shorts. The first location was in Dallas, Texas.
Twin Peaks’s slogan is “Eats. Drinks. Scenic Views.” The sports bar prides themselves in their extensive menu which they call their “Scratch Kitchen”. This means that everything ordered is made from scratch which is another way of saying that their food items are always fresh. Their drinks which are draft beers in 29° are served in “man sized” 22 ounce beer mugs that have been frozen. They’re dubbed as the “coldest beers in the country”. And as for their scenic views, this is in the form of their restaurants designed to look like a cabin in the mountains added with their numerous TVs to watch live sports or the gorgeous Twin Peaks girls.
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Twin Peaks has been called “The Fastest-Growing Food Chain In America” in 2014 by Bloomberg. They’re open for both local franchising and international franchising with the international one having 3 locations in Mexico. Currently, the chain has 91 restaurants but more locations are opening soon with Twin Peaks setting a goal of 200 restaurants by the year 2027 with 25 to 28 of those restaurants located internationally.
To be considered as a franchisee, complete the necessary information here. You’ll go through the pre-qualification process which also includes an introductory call and a discussion of the territory of your interest. When you pass this step of the qualification process, the next stage involves the viewing and signing of the Franchise Disclosure Document (FDD) along with their nondisclosure agreement (NDA) and Large Investment Waiver. Then the important nitty gritty requirements and details are complied such as the checking of your financial statements, giving them your Ownership Entity Documents, Letter of Intent, Business Plan, and Bio.
Twin Peaks servers.
If you get to this stage, you’ll get to meet with Twin Peaks’ Vice President of Franchise Sales & Development right after then a Discovery Day Meeting in Dallas where you’ll meet with the team. You’ll also be able to visit Twin Peaks locations and see how the business is run. After all this you’ll finish up on the legal requirements which will then get you to become an official Twin Peaks franchisee.
Twin Peaks is owned by FAT Brands who owns Hot Dog on a Stick and Johnny Rockets. The CEO of Twin Peaks is Joe Hummel and their headquarters is in Dallas.
How Much Does Twin Peaks Make in Profit?
As mentioned above, Twin Peaks has an average unit volume of $5,218,321 at present. But based on the 2021 data which is $5,049,359, a Twin Peaks owner expect to generate $504,935 to $1,009,871 in profits on those sales (depending on the profit margin percentage and location). As you can see, if you were able to expand to even 2 – 3 Twin Peaks locations, you could become quite wealthy with this venture indeed.
Advantages of a Twin Peaks Franchise
Twin Peaks has a number of advantages when you decide to franchise with them. Here are some you can expect:
Training is an integral part of becoming a franchise owner. This is to ensure that you’re fully capable of running the business once it’s opening day and onwards. For Twin Peaks, their training includes a 9-week training process at the Twin Peaks Training Center in Dallas. On-site pre-opening and opening training is also done for a minimum of 14 days. Operation reviews and periodic on-site visits are also included.
At present, Twin Peaks has more than 90 locations. But all that is about to change since Twin Peaks’ main goal is to surpass 100 locations in 2023. With that said, if you have the financial qualifications, you could possibly franchise a Twin Peaks soon. Based on similar concepts like Hooter’s who have 300+ restaurants, you can see there’s significant expansion opportunities for this franchise in the United States and internationally.
High End Sports Bar
Twin Peaks isn’t your usual sports bar with just the basic bar chow and screens hung from the ceiling. Twin Peaks is THE sports bar. It has a high end menu that isn’t limited to pre-made food items that are dropped into a frier. They also have countless number of flat-screen TV screens that their customers can enjoy. Let’s also add in the super cold beers and their waitresses which makes Twin Peaks a place one might actually enjoy going to.
There’s a full bar at Twin Peaks.
Exclusive territories: Franchisees are granted an exclusive territory, which means that they are the only Twin Peaks restaurant in that area. This can help to protect franchisees from competition and ensure that they have a steady stream of customers. Twin Peaks has done an admirable job so far and not expanded too fast that can result in over saturation of markets.
Emphasis on Alcohol Sales: The cost of food is a major expense for any restaurant and Twin Peaks is no exception. The restaurant uses high-quality ingredients, which can drive up food costs. This can make it difficult to maintain a profit margin due to inflation. Fortunately, Twin Peaks generates significant revenue through beer and alcohol sales. These are high-margin products to sell and make the restaurant chain less sensitive to raising food costs.
Challenges of a Twin Peaks Franchise
Of course there are still challenges when you operate a Twin Peaks franchise. Here are a few you can expect.
Concerns about Discriminatory Behavior
Twin Peaks co-founder Randy DeWitt’s concept of the sports bar was because “Hooters just wasn’t racy enough.” And though children were allowed inside to dine at Twin Peaks, it’s still be slightly uncomfortable for some guests to be exposed to females who are scantily clad. No doubt some members in most communities will be concerned about this restaurant / bar opening near their neighborhood.
In addition, Twin Peaks has been embroiled in several discriminatory and sexual assault accusations. For instance, Twin Peaks girls are heavily judged from body type to their hair, skin, nails. Men are not hired as servers at this restaurant. There have also been reports of sexual harassment that customers would inappropriately touch the waitresses without facing any consequences. Valid or not, none of these accusations are good for the brand.
29 degree draft beer.
Competitor sports bar Hooters once accused Twin Peaks co-founder Joseph Hummel for stealing “trade secrets”. Both bars are in the business of food, drinks, live sports, and attractive waitresses. Hooters said Hummel took “sensitive business information” from them. Though the lawsuit was settled in 2012, it still resulted in negative press for Twin Peaks.
Liquor licenses: In some states, it is difficult and expensive to obtain a liquor license. This can be a challenge for franchisees who want to sell alcohol at their restaurants like Twin Peaks. While this is not an unsurmountable challenge, you may need to be flexible on the exact location where you plan to build a Twin Peaks restaurant.
Is the Twin Peaks Franchise Right For You?
Twin Peaks as a sports bar looks like an ideal franchise but the discriminatory and sexual harassment issues can make you want to think twice whether you’d like to franchise with them or not. On top of it all, the financial requirements are steep. So do think hard about franchising this sports bar and consult with a financial expert before sining a franchise agreement.
What is an alternative Twin Peaks franchise?
If you’re still looking for an alternative sports bar with the same concept as Twin Peaks, you can check out a close competitor Hooters. Hooters has been in the business since 1983 and has over 370 locations worldwide. They’re known for their wings, beer, and their attractive waitresses.
To franchise Hooters, expect the investment to reach $2,748,300 and $4,100,00 with a franchise fee of $75,000.
Sports Bars have been a go-to place for those wanting to enjoy watching live sports along with food and drink. It’s a $2 billion industry with an expected growth rate of 6.1% from 2022 to 2029. It’s a business that involves food and a number of television screens along with an enthusiastic crowd that converges to cheer on their favorite sports teams.