Updated on April 7, 2018.
Detailed Estimates of Twin Peaks Restaurant Franchise Costs Based on Item 7 (Estimated Initial Investment) of Twin Peaks’ 2017 Franchise Disclosure Document
For New Construction Space
1. Development Fee: Varies
- The development fee is equal to 100% of the initial franchise fee for the first Restaurant plus 50% of the initial franchise fee for each additional Restaurant to be developed under the Area Development Agreement.
2. Initial Franchise Fee: $50,000
- If you develop a single Restaurant, your initial franchise fee is $50,000. If you commit to develop multiple Restaurants under an Area Development Agreement, Twin Peaks credits the allocable portion of your development fee against each applicable initial franchise fee.
3. Leasehold Improvements: $2,035,000 to $2,117,500
- Twin Peaks Restaurants are typically located in commercially zoned shopping or entertainment areas.
- The leasehold improvement amounts for new construction include the site improvement costs and the costs to build a building, but they do not include amounts to purchase land.
- The new construction leasehold improvements estimate is based on the cost of adapting Twin Peaks’ prototypical architectural and design plans (including architect fees) to build a facility containing approximately 6,000 to 8,000 conditioned square feet with a typical patio area.
- The estimate assumes that the landlord will provide connections to adequate electrical, gas, water, and sewage service. Your actual costs may or may not include site preparation and finish-out costs, depending on the arrangements you negotiate with your landlord.
- If your landlord contributes to the cost of finish-out, total leasehold improvement costs should be reduced.
- These costs are Twin Peaks’ best estimate based on commercial leasing and remodeling/finish-out rates that its affiliates have experienced with company-owned Twin Peaks Restaurants.
- The above estimates assume that you will use an approved general contractor and architect.
4. General Contractor Approval Fee: $0 to $5,000
- If you request Twin Peaks to approve a general contractor not on its list of approved contractors, it may require you to pay a $5,000 processing fee for its cost in determining whether the contractor is qualified.
5. Equipment, Furniture, Fixtures, and Signage: $979,000 to $990,000
- These amounts include the cost of the furniture, fixtures, equipment (including the franchisor’s approved glycol beer system), decor items, signage, a POS System and multiple terminals, computer hardware and software, and audio-visual equipment system required for your Twin Peaks Restaurant.
- If you open a Restaurant that has more square footage than the ranges stated in Note 3 above, then you should expect to pay more.
- The high end of the range assumes that all items in this category were purchased as new items, not used or refurbished items.
6. Liquor License: Varies
- Twin Peaks is unable to estimate the cost of your liquor license because of wide variations in costs, depending on factors like location, the availability of liquor licenses, the ability to transfer or assign a license, and the market value of liquor licenses.
7. Business Licenses and Permits: $3,000 to $4,000
- This amount represents the estimated cost of health and various operating licenses required at the local, regional, or state level.
8. Initial Training Costs: $25,000 to $50,000
- Twin Peaks provides initial training to your initial Operator, Unit General Manager, and all Shift Managers at no additional charge. The initial training takes place at one of Twin Peaks’ certified training restaurants and may last up to 8 weeks for your Operator or Director of Operations and up to 7 weeks for your Unit General Manager or Shift Managers.
- You must pay all expenses you or your management personnel incur in the initial training program, like travel, lodging, meals, and wages, and these costs will vary depending upon your selection of salary levels, lodging and dining facilities, mode of transportation, and distance traveled.
- Due to the wide variances in wages, the range of estimated costs does not include wages or salaries.
- The lower dollar amount assumes trainees live near one of Twin Peaks’ certified training restaurants and that no hotel or transportation costs are incurred.
9. Opening Training Team Costs: $60,000 to $75,000
- Twin Peaks provides an Opening Training Team of its trained representatives to provide on-site pre-opening and opening training, supervision, and assistance to you for up to 14 days based on its assessment of your needs in connection with the opening of your Restaurant.
- This support is provided for the opening of your first 3 Restaurants only. You must pay for the compensation, costs of travel, lodging, and per diem of the Opening Training Team.
10. Initial Inventory and Supplies: $37,400 to $99,000
- Twin Peaks estimates that the range given will be sufficient to cover food and paper inventory needs for the first week of operations when training and dry-runs of Restaurant services occur prior to the opening of the Restaurant to the general public.
11. Professional Services: $8,000 to $19,000
- This estimate includes the cost to establish your franchise entity and to have the franchise documentation reviewed. This fee also includes the cost of hiring a company that specializes in helping restaurant operators submit and obtain licenses and permits.
12. Restaurant Opening Promotion: $12,500
- You must carry out a grand opening promotion for the Restaurant that complies with Twin Peaks’ written specifications. It must approve all advertising items, methods, and media.
13. Insurance: $11,250 to $25,000
- The cost does not include any premium for workers’ compensation insurance, liquor liability, auto liability, employment practices liability insurance, data privacy/cyber liability.
14. Audio/Visual Bid Review Fee, Final Inspection Fee, and Installation Approval Fee: $650 to $900
- If you request that Twin Peaks review a bid for installation of your audio/visual system or inspect the audio/visual system once installed, Twin Peaks may require you to pay it a bid review fee (currently, $150) or a final inspection fee (currently, $500), as applicable, in addition to travel expenses of the inspector. The fees are charged regardless of whether you use a newly approved or previously approved audio/visual provider and installer.
- If you ask Twin Peaks to approve an audio/visual equipment provider and/or installer who is not on the list of approved suppliers, it may require you to pay it an additional fee for review of the audio/visual equipment provider and/or installer that you submit for its qualification.
15. Architect Training Fee: $10,000
16. Site Evaluation Software Fee: $0 to $500
17. Additional Funds for Initial 3-Month Period: $80,000 to $150,000
- You will need additional funds during the start-up phase of your business to pay employees, purchase supplies, and pay other expenses, such as monthly rent and security deposit. Twin Peaks estimates the start-up phase to be 3 months from the date you open for business.
- These amounts do not include any estimates for debt service. You must also pay the Royalty Fees and other related fees described in Item 6 of the disclosure document.
- These figures are estimates and Twin Peaks cannot assure you that you will not have additional expenses.
- Twin Peaks relied on the experience of its affiliates’ company-owned Restaurants to compile these estimates.
18. Total: $3,311,800 to $3,608,400