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Buying a Franchise: Pros and Cons


One of the growing business trends for entrepreneurs is to buy a franchise. Purchasing a franchise has proven to be a great option for many as they take on the security and backing of the franchisor with more reliability than the average start-up business. If you are interested in franchising, below are both the pros and cons of buying a franchise.

Pros of Buying a Franchise

Reliability of the system

When you buy into a franchise, you have the reliability of a business plan and a product that has proven to work repeatedly. You are given training on the business plan, and provided the mission at the beginning of the purchase, thoroughly understanding everything from operations and inventory to the standards of service that are required.

Corporate Support and Training

One of the biggest advantages that come with being a franchise owner is the support that is provided by the franchisor. If at any point you find that sales are falling and you need some assistance with moving your product, corporate will come in immediately with assistance.

Training is a big part of your relationship with your franchisor. In order to maintain continuity, consistency, and new product delivery, training throughout the year is essential. It is important that staple products of your franchise are promoted and found consist throughout all locations, no matter how many franchise owners between the locations.

The Benefit of Brand Name

Branding of a franchise is central to its marketing. The customer base behind the brand instantly becomes your own customer base once you buy in and begin operating your location. Also, marketing supplies and resources are also provided to the franchise owners periodically for any new promotions with the franchise and to stay current.

Buying Power Bonus

Like the brand, as a franchise owner, you have a power bonus when purchasing inventory or equipment with suppliers. Because you are associated with a franchise, you are entitled to any special prices, products, and equipment, prompting lower costs. The negotiation for many of these items has already been discussed with the franchisor, limiting your stress on prices and the ability to just place the orders.

Retaining Quality Staff

When you buy into a franchise, you can expect potential employees to apply to your location because of the brand and reputation of the franchise. You are able to recruit the best staff members from a large supply of applications and maintain them through standard training from the corporate office.

Cons of Buying a Franchise

Initial Costs

When you buy into a franchise, there is a “buy-in.” Before someone can purchase a franchise, they must first pay a portion of fees and start-up costs, as this shows the franchisor that there is financial stability to go with your interest.

Annual Costs

The marketing supplies and discounted inventory comes at a price. Annual fees that cover the marketing and other services provided by the franchisor over the course of the year are required by the franchise owner. If the year was not as profitable as in previous years, these fees can be steep.

Why Twin Peaks?

If you’re searching for a quality franchise to invest in, look no further than Twin Peaks. We are the ultimate sports lodge. Our restaurants feature the most relevant sports events, games, matches, fights, and highlights in an authentic lodge atmosphere; a proven business model that champions our signature 29° man-size beers, made from scratch food, and the Twin Peaks Girls. The Twin Peaks menu is the innovative gold standard for the industry, with rotating local beers and in-house brews always on tap. This is the restaurant that encourages every guy and guest to embrace their inner lumberjack.

Investing in Twin Peaks requires an asset liquidation of $1,750,000 minimum, a net worth of $5,000,000, and the security of financing from a third party. If you are a highly qualified developer and operator meeting these criteria, contact us here for more franchising information.

Have More Questions For Us?

Open the FAQs below to find out more about the franchise process. Don’t see the question/answer you’re looking for? Email us for more information.

View FAQs
Where can I obtain more information?

Contact our Franchise Development Department for availability in your trade area:

Franchise Development (972) 941-3160

What is the availability of opportunities in my area?

Currently, we are evaluating only the best applicants in many new territories throughout the U.S., due to the overwhelming amount of interest in Twin Peaks franchises.

What is the term of the franchise agreement?

The initial term of your Twin Peaks franchise agreement is 15 years.

How much can I potentially make as a Twin Peaks franchisee?

Your earnings capability will depend on a number of factors, such as ability to manage your restaurant and lead the team, market conditions, location, traffic, operating costs and financing terms. While there is no guarantee of success, Twin Peaks gives the tools and opportunities to positively affect your profits.

What are the site requirements for a Twin Peaks restaurant?

Restaurants are 6,000-8,000 square feet with outdoor seating and 150+ parking spaces. Prime locations are located in high traffic areas with above-average daytime and residential demographics and have excellent visibility with easy access.

What is the franchisee training process?

There is an initial 7-week training program at the Twin Peaks Training Center located in Dallas, Texas. Additionally, we provide on-site pre-opening and opening training for a minimum of 14 days as well as periodic on-site visits and operation reviews.

How long does it take to open a Twin Peaks restaurant?

While it varies per location, launching a store typically takes about 9-12 months, from signing the franchise agreement to opening day at your Twin Peaks restaurant.

What are the minimum financial qualifications?

Groups and/or individuals are required to display a minimum of $1,750,000 in liquid assets combined with an overall net worth of $5,000,000, as well as ability to secure third party financing

What is the cost to open a Twin Peaks restaurant?

The initial cost of building a Twin Peaks restaurant ranges from $1,434,200-$3,633,400. This includes all start-up expenses as well as the $50K initial franchise fee. The total cost of each restaurant varies by size, age and location. Find out more here.

What are the operations and management requirements?

Twin Peaks is actively seeking highly qualified existing multi-unit restaurant developers and operators to become franchisee brand partners. We take several important factors into account during the selection process.