Twin Peaks Franchise: AUV, Costs & Profits (2023)

Just like Walk-On’s Bistreaux & Bar, Twin Peaks is a very popular sports bar franchise: it now has 91 sports bars across the US today, of which 61 are franchised-owned.

It’s also not the most affordable either: you would need to invest $4,292,000 to open a new location as a franchisee. But what about the revenues?

That’s where it gets interesting: the average Twin Peaks generates a little over $5.5 million in sales per year, more than the vast majority of restaurants and bar franchises.

In this article we are looking at Twin Peaks and its Franchise Disclosure Document to find out how much it (really) costs, and how much money you can realistically make as a franchisee. Let’s dive in!

Key stats

Franchise fee$50,000
Royalty fee5.0%
Marketing fee3.0%
Investment (mid-point)$4,293,000
Average sales$5,540,000
Sales to investment ratio28.0x
Minimum net worth$5,000,000
Minimum liquid capital$2,000,000
Source: Franchise Disclosure Document 2023

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About Twin Peaks

Headquartered in Lewisville, Texas, Twin Peaks is a popular sports bar and restaurant franchise.

Twin Peaks was founded in 2005 by Randy DeWitt and Scott Gordon, who wanted to create a fun and unique atmosphere for sports fans to enjoy while watching games.

Twin Peaks is known for its mountain-lodge atmosphere, with servers dressed in lumberjack-style clothing, and menu items that include comfort food such as burgers, wings, and sandwiches, as well as a wide selection of beer and cocktails.

The franchise began franchising in 2007, and currently has 90 locations across the United States of which 59 are franchise-owned today.

How much does a Twin Peaks franchise cost?

You would need to invest around $4,292,000 to open a new Twin Peaks franchise. 

There are 2 formats of franchise option you can choose to set up as a franchisee:

  • Conversion from an existing unit ($3,517,500); or
  • New build ($5,067,500)

Startup costs

Here’s the breakdown of startup costs from the FDD:

Type of ExpenditureLowHigh
Initial Franchise Fee$50,000$50,000
Formation Costs$3,827,000$5,598,000
Initial Marketing$10,000$10,000
Operating Costs$200,000$390,000
Total$4,087,000$6,048,000
Source: Franchise Disclosure Document 2023

What is the franchise fee?

The initial franchise fee for a Twin Peaks franchise is $50,000

In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.0% of revenues, as well as a variable marketing fee of 3.0% of revenues.

What is the turnover of a Twin Peaks franchise?

A Twin Peaks franchise makes $5,540,000 in revenue per year on average (that’s actually the median AUV for all 56 franchised-owned sports bars that were opened throughout 2022).

Of course, the AUV varies from one sports bar to another: whilst the lowest turnover was $2.5 million, the most successful Twin Peaks franchised bar made over $12 million in sales..!

How profitable is a Twin Peaks franchise?

We estimate that a Twin Peaks bar restaurant franchise makes $896,000 in profits per year, that’s a ~18% EBITDA margin, in line with the restaurant franchise industry.

Note that Twin Peaks does not disclose a detailed profit and loss nor a EBITDA in its latest FDD. Instead, we had to estimate EBITDA by using the available information provided in the FDD for company-owned restaurants (COGS and labor costs) and making some assumptions as explained in the table below.

Profit and lossAmount% AUVSource
AUV$5,007,264100.0%as per FDD
COGS (Food)$(841,220)16.8%as per FDD
COGS (Bar)$(515,748)10.3%as per FDD
Gross Profit$3,650,29572.9%
Labor Cost$(1,452,107)29.0%as per FDD
Occupancy costs$(500,726)10.0%assumption
Royalties$(400,581)8.0%as per FDD
Other operating costs$(400,581)8.0%assumption
EBITDA$896,30017.9%
Source: Franchise Disclosure Document 2023

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Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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