Twin Peaks Franchise Owner Salary & Failure Rate 2024

Do you want to open a Twin Peaks franchise? The chain is one of the most famous sports bars that is known as a sports lodge in the United States. It might be a great idea to own one.

How Much Does A Twin Peak's Franchise Owner Make

We will give you all the details about Twin Peaks, its history, what you can expect from its franchise system, costs, and anything related to Twin Peaks franchising.


About Twin Peaks

About Twin Peaks

Twin Peaks is an American sports bar and restaurant franchise chain that is known as one of the best sports lodges. The restaurant is famous for its waitresses, who are generally young women with revealing uniforms in different shapes. Their menu consists of a mix of American cuisine and alcohol.

The company was founded in 2005 and started to franchise in 2007. They have been franchising ever since, and they now have over 100 outlets across the United States. The company was sold to FAT Brands in late 2020 for $300 million.


Franchise Requirements Of Twin Peaks

The franchisee individual or group must have liquidity of at least $2 million and a combined net worth of at least $5 million. The franchisee should also be able to present the ability to secure the necessary financing to build the store.

In addition to the financial requirement, the potential Twin Peaks franchisee should also have multi-unit restaurant development and operation experience.

Having the business acumen, business management experience, or anything similar is highly important for franchisees to get approval.


How Much Does A Twin Peak’s Franchise Owner Make?

Twin Peaks doesn’t disclose the detailed profit and loss numbers of their franchised stores in their franchise disclosure document. Therefore, all the numbers available on the internet are estimations based on the industry and the very little information provided in the FDD for the company-owned restaurants.

According to these estimations, an average Twin Peaks could make $896,000 in profits per year. This equals to about an 18% margin.


Twin Peaks Franchise Profit & Revenue

Based on the performance of 56 franchised outlets in 2022, Twin Peak franchise owners make $5,540,000 in revenue per year on average.

The revenue that Twin Peak franchise owners make obviously varies based on the location, outlet size, labor cost, and more.

Assuming a profit margin of 18%, a Twin Peak franchise owner makes $997,200 in annual profits on average.

Here’s how we calculated the profit for the Twin Peak franchise:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%5540000.00
Rent10.25%(567850.00)
Insurance5.13%(283925.00)
Salaries20.50%(1135700.00)
Franchise Royalty Fees5.13%(283925.00)
Utilities2.05%(113570.00)
Cost of Goods Sold (COGS)25.62%(1419625.00)
Labor (Variable)13.33%(738205.00)
Total (Expenses)82.00%(4542800.00)
Net Profit18.00%997200.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Twin Peaks

The midpoint investment of $4,293,000, and the yearly profit is $997,200. So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $4,293,000 / $997,200= 4.3 years

Based on these figures, it will take approximately 5 years to pay back the initial investment for Twin Peak. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Twin Peaks

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20205652-4
20215257+5
20225761+4

For the Franchised outlets:

  • In 2020, the failure rate was (4)/56×100≈7.14%
  • In 2021, the growth rate was (5)/52×100≈9.61%
  • In 2022, the growth rate was (4)/57×100≈7.01%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20202826-2
20212628+2
20222830+2

For the Company-Owned outlets:

  • In 2020, the failure rate was (2)/28×100≈7.14%
  • In 2021, the growth rate was (2)/26×100≈7.69%
  • In 2022, the growth rate was (2)/28×100≈7.14%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20208478-6
20217885+7
20228591+6

For Total outlets:

  • In 2020, the failure rate was (6)/84×100≈7.14%
  • In 2021, the growth rate was (7)/78×100≈8.97%
  • In 2022, the growth rate was (6)/85×100≈7.05%

According to the above-mentioned data, we can see that the franchised outlets for Twin Peak grew from 2021 to 2022, showing a growth rate between 9.61% and 7.01%. However, the company started with a failure rate of 7.14%.

On the other hand, for company-owned outlets, the growth rate of Twin Peak was lying in the range between 7.69% and 7.14% for the period between 2021-2022. In th year 2020, the failure rate was 7.14%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Twin Peak franchise started with negative net chage, showing a failure rate of 7.14%. Later, it expanded in the years 2021-2022 showing a total growth rate between 8.97% and 7.05%.


Overall Sales

As per the franchise disclosure document of Twin Peaks, on average, a Twin Peaks franchised store makes $5.8 million. This number is the total average number of all 98 stores that were in operation for 12 months before the report was published. The lowest gross sales was $2.5 million; the highest was over $12 million.


Terms of Agreement and Renewal

The initial term of the Twin Peaks franchise is for 15 years. After the 15 years is over, you have the option to renew for one additional 15-year term. The franchisor must approve your renewal request, and both sides must be in good standing to make the renewal happen. There is no renewal fee.


Conclusion

Twin Peak is one of the most popular sports bar chains in the United States, with over 100 stores and a solid franchise system.

The cost to open Twin Peaks is relatively moderate compared to its competitors, and the average gross sales per store is $5.8 million, which is exceptionally high.

The restaurant provides a solid opportunity for both new and existing entrepreneurs. In case you are considering owning one, it might be worth investing in this franchise chain.


FAQs

How much does it cost to open a Twin Peaks?

The average cost to open a Twin Peaks is between $1.5 million and $5.1 million. The exact costs depend on several factors, such as the location, size, and the type of the store.

Who owns Twin Peaks?

FAT Brands is the current owner of the Twin Peaks restaurant chain. FAT Brands acquired Twin Peaks in 2020.

How many locations does Twin Peaks has?

Twin Peak is operating in over 100+ locations in 26 states in the USA and Mexico.

Where is Twin Peaks headquartered?

The headquarters of Twin Peak is located in Addison, Texas.

Who founded Twin Peaks?

Twin Peaks is an American chain of sports bars and restaurants. It was founded in 2005 by Randy Dewitt and Scott Gordon.

Sources

https://www.franchimp.com/?page=pdf&f=106163_2023.pdf

https://en.wikipedia.org/wiki/Twin_Peaks_(restaurant_chain)

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