FDD Talk 2014: Our Latest Views on Twin Peaks’ Average Sales, Cost of Goods Sold, Rent, and Labor Costs

Highlights of Twin Peaks’ Item 19 Financial Performance Representations (2014 FDD)

• The information stated below is not audited. Operating expenses are expressed as a percentage of the restaurants’ total gross revenue, therefore, you can draw no inferences with respect to profitability.

• The expenses reflected in the chart do not reflect all operating expenses relevant to the franchised business. They do not include, for example, taxes, financing charges, service fees, royalty or advertising fees, and other amounts due under the franchise agreement paid by franchisees of franchised locations.

• When preparing a pro forma for your franchised business, you will need to identify and plan for these and other additional expenses.

• Each restaurant has been open for one full year or more, but the restaurants vary in size from 6,000 square feet to as much as 11,000 square feet.

• These restaurants are open seven days per week, and some of the restaurants’ normal operating hours are from 11:00 a.m. to 12:00 p.m. Sunday through Wednesday and 11:00 a.m. to 2:00 a.m. Thursday through Saturday.

• The 2012 numbers are the results of the operations of 18 restaurants owned and operated by either franchisees or Twin Peaks’ affiliates. Seven of the 18 restaurants, or 39%, exceeded the amount of Average Restaurant Sales.

• The 2013 numbers are the results of the operations of 28 restaurants owned and operated by either franchisees or Twin Peaks’ affiliates. Thirteen of the 28 restaurants, or 39%, exceeded the amount of Average Restaurant Sales.

• Your restaurant’s financial results are likely to be different from those that are listed below. There is no assurance that you will sell as much.

2012

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