In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Twin Peaks franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Twin Peaks franchise, based on Item 7 of the company’s 2018 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Twin Peaks franchise, based on Items 5 and 6 of the company’s 2018 FDD
- Section IV – Number of franchised and company-owned Twin Peaks outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
- Section V – Presentation and analysis of Twin Peaks’ financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
- 2017 average, median, high, and low unit volume for the 47 franchised Twin Peaks Restaurants operating for the full 2017 fiscal year ended December 31, 2017
- 2017 average, median, high, and low unit volume for the 30 company-owned Twin Peaks Restaurants operating for the full 2017 fiscal year ended December 31, 2017
- 2017 cost of goods sold (food cost, bar cost, total), gross profit, rent/common area maintenance/tax, labor cost (hourly staff, manager, payroll taxes/benefits, total), and revenue mix (food/merchandise, bar) for the 30 company-owned Twin Peaks Restaurants operating for the full 2017 fiscal year ended December 31, 2017
Section I – Background Information
16 Things You Need to Know About the Twin Peaks Franchise
Celebrates Grand Re-Opening of Newly-Remodeled Flagship Restaurant
1. At the beginning of September 2018, Twin Peaks celebrated the grand re-opening of its flagship restaurant in Lewisville, Texas. The flagship restaurant originally opened in 2005 and was closed for a while as a massive remodel project took place.
2. On the night that the Lewisville Twin Peaks temporarily closed its doors, regular customers and community members gathered to raise more than $3,000 for Folds of Honor, Twin Peaks’ national charity. John St. Germain, general manager of the Twin Peaks Lewisville location, said, “It was such a special night to be able to bring all of our customers and community members together to say goodbye to the old and welcome in the new.”
3. Twin Peaks has added additional seating on the patio and inside the restaurant, including custom wood communal tables, updated bar seating and dining room booths. The bar area has been expanded and is now double-sided with outside roll-down screens for year-round enjoyment. Décor has been refreshed and AV packages have been enhanced, including the restaurant’s 55 TVs.
4. The restaurant design isn’t the only aspect that has gotten a makeover. The beer drafts on tap have been doubled from 12 to 24, and the bourbon and whiskey offerings have also been expanded to a more comprehensive list, including Texas-made bourbons.
5. Twin Peaks had a weekend-long party to celebrate the new and improved restaurant. Joe Hummel, CEO of Twin Peaks, said, “We can’t wait to unveil our stunning new restaurant and expanded beverage offerings to the Lewisville community on Thursday. This was the very first Twin Peaks restaurant, which was built in 2005. We kept most of the originality of the restaurant and focused on refreshing the aspects that we thought would make the Ultimate Sports Lodge experience better for our guests.”
Continues to Climb in Sales and Traffic During a Successful Second Quarter
6. After the end of the second quarter of 2018, Twin Peaks said in early August that the brand was continuing to accelerate its success with record-breaking comparable sales growth and affirmative plans for expansion. Twin Peaks announced comparable sales and traffic that show the brand far out-performing the casual dining sector, according to sales data from Black Box Intelligence, a restaurant industry financial performance bench-marking company.
7. Twin Peaks’ second quarter comparable same-store sales increased by 9.40% while comparable same-store traffic increased by 5.12%. This performance put Twin Peaks’ comparable sales growth in the 98th percentile for casual dining during the second quarter.
8. In the same announcement, Twin Peaks also said that it was cranking up expansion with plans to open an additional 14 locations within the next 12 months. During the first half of 2018, Twin Peaks signed two franchise agreements with Permian Entertainment LLC in West Texas and JEB Food Group, LLC in central and southern Ohio.
9. According to Joe Hummel, CEO of Twin Peaks, “Twin Peaks has accomplished a lot so far in 2018 and we’re excited to keep the positive momentum going into 2019. The increase in sales we have seen is a testament to the outstanding service, elevated new menu options and interactive events that Twin Peaks focuses on by staying true to our roots. We expect to see a lot more new restaurant deals and sales growth as we head into 2019.”
Signs Development Agreement to Open New Restaurants in Central and Southern Ohio
10. At the beginning of August 2018, Twin Peaks announced that it had signed a new franchise deal, with plans to open seven additional stores in Ohio. As part of the new Area Development Agreement with JEB Food Group, LLC, Twin Peaks will open seven locations throughout Cincinnati, Columbus, and Dayton, Ohio. The agreement anticipates that all of the new restaurants will be open within about four years.
11. Ed Williams, managing member of JEB Food Group, said, “Twin Peaks is so much more than the typical sports bar. The polished mountain lodge setting, scratch menu, Twin Peaks Girls, and the brand’s universal promise of serving its draft beer at 29-degrees, offers a unique experience unlike anything else in the industry. It’s a huge hit in all of its current cities and we have no doubt that Ohio will be any different. We are excited to join the Twin Peaks team and we look forward to introducing the one-of-a-kind concept to everyone in these new cities.”
12. JEB Food Group, LLC, is an entity consisting of three partners – Williams, Brent Irish, and John Hong. JEB is led by Williams, who has more than 30 years of quick-service and full-service restaurant development, operations, and ownership experience. Irish and Hong are both successful real estate investors and developers in Oklahoma City. The trio has participated in a number of successful ventures over the years, including the recent purchase of the Circle M Crawfish restaurant, an East Texas institution for over 20 years.
13. Joe Hummel, CEO of Twin Peaks, added, “We have been looking forward to expanding through Ohio and the northeastern states ever since we started franchising. JEB Food Group has an awesome team with a lot of experience and expertise, so we are excited to have them lead the way into central and southern Ohio.”
14. Twin Peaks was founded in 2005 by Randy Dewitt and Scott Gordon in Lewisville, Texas. Before coming up with the idea for Twin Peaks, Dewitt had previously helped Brinker International develop Rockfish Seafood. Dewitt noticed that there was a thriving sports-bar market and decided to open a chain with a mountain-lodge motif and attractive female servers dressed in sexy outfits, which is similar to Hooters’ famous business model.
15. Each Twin Peaks restaurant is decorated with items that would be found in a mountain cabin. The Twin Peaks menu features made-from-scratch hearty dishes, as well as a wide selection of beer. Twin Peaks started franchising in 2007 and most of its locations are in Texas and other parts of the American Southwest, Midwest, and South.
Entrepreneur’s Franchise 500
16. Twin Peaks did not rank on Entrepreneur’s 2018 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Twin Peaks franchise costs, based on Item 7 of the company’s 2018 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Twin Peaks’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 43
- Outlets at the End of the Year: 45
- Net Change: +2
- Outlets at the Start of the Year: 45
- Outlets at the End of the Year: 54
- Net Change: +6
- Outlets at the Start of the Year: 54
- Outlets at the End of the Year: 51
- Net Change: -3
- Outlets at the Start of the Year: 20
- Outlets at the End of the Year: 26
- Net Change: +6
- Outlets at the Start of the Year: 26
- Outlets at the End of the Year: 27
- Net Change: +1
- Outlets at the Start of the Year: 27
- Outlets at the End of the Year: 30
- Net Change: +3