Twin Peaks Franchise Costs, Fees & Owner Salary (2023)

Initial Franchise Fee ($50,000)

‍The initial franchise fee for a Twin Peaks franchise is $50,000. This fee is considered fully earned and non-refundable when paid.

Royalty Fee (5% of Gross Sales)

‍Franchisees are required to pay a weekly royalty fee equal to five percent (5%) of the Gross Sales of the Restaurant for the immediately preceding week.

Advertising Fee (3% of Gross Sales)

• Franchisees are required to contribute to a Brand Fund at 2.5% of their Gross Sales.
• Franchisees will also be required to spend a minimum of 0.5% of Gross Sales on approved local marketing.
• Currently, there is no established advertising cooperative (a "Cooperative"). However, Twin Peaks may require franchisees to participate in an approved local or regional Cooperative with certain other franchisees. The contribution amount designated by the Cooperative will be at least 0.5% of Gross Sales per Restaurant but may be greater if desired by the Cooperative.

Twin Peaks offers two primary franchising options for potential investors. The first option is converting an existing restaurant space, which requires an estimated initial investment ranging from $1,987,000 to $5,048,000.

‍This includes costs such as an initial franchise fee of $50,000, leasehold improvements and deposits ranging from $700,000 to $3,100,000, and equipment, furniture, fixtures, and signage costs between $800,000 and $1,200,000, among other expenses.

The second option is constructing a new restaurant space, with the initial investment estimated between $4,087,000 and $6,048,000. This option encompasses similar costs as the conversion option but varies in amounts for specific expenditures.

A detailed breakdown of these costs can be found in the provided table.

Diving into the vibrant atmosphere of Twin Peaks offers an opportunity to be part of a brand that combines sports, entertainment, and dining. Their commitment to franchisee success is evident in their training and support structure. Here's a snapshot of what they offer:

Training Program: Twin Peaks provides a comprehensive training program designed to ensure franchisees are equipped with the necessary knowledge and skills to operate their establishment.

Who Needs to Attend: The franchisee's designated Operator, Unit General Manager, and Shift Managers are required to complete Twin Peaks' initial training program.

Training Content: The program covers essential topics for running the establishment, including sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: Training is conducted at designated Twin Peaks locations. The duration is approximately 3–4 days. Practical experience in the operation of a Twin Peaks establishment is also part of the training. Trainees are offered 130–160 hours of on-the-job training.

Training Expenses: While Twin Peaks provides the initial training program for the franchisee's designated Operator, Unit General Manager, and Shift Managers, franchisees are responsible for personal travel, accommodation, and other costs while attending training.

Franchisees do not receive an exclusive territory. They are provided with a geographical area known as the "Designated Area". During the term of the Franchise Agreement, Twin Peaks commits not to alter this Designated Area. However, the Designated Area may be modified upon renewal.

Franchisees may face competition from other franchisees, from outlets that Twin Peaks owns, or from other channels of distribution or competitive brands controlled by Twin Peaks.

During the term of the Franchise Agreement, both the "Operator" and the "Unit General Manager" are required to devote their full-time attention to the management of the restaurant.

The "Operator" is defined as the individual who has the authority to actively direct the day-to-day business affairs regarding the Restaurant and is responsible for overseeing its general management.

Furthermore, the Operator, the Unit General Manager, and all Shift Managers must complete the franchisor's training course.

The Twin Peaks franchise model necessitates active involvement in the business. While you can appoint an "Operator" and a "Unit General Manager" to manage the daily operations, the franchise is not designed to be a purely passive investment.