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Vital Facts and Stats to Consider Before Opening a Restaurant Franchise


In an extremely competitive, but often highly profitable industry, opening a restaurant franchise offers future eatery owners better odds at becoming more successful with a pre-established brand. As with starting or opening any type of new business,
there’s necessary research involved, including several facts and stats that should be carefully weighed before investing.

There are a plethora of pros and cons to examine before choosing a franchise over an original restaurant concept, and vice versa. There are piles of make-or-break numbers in need of crunching prior to purchase. Here’s a quick breakdown of some of the crucial things to consider during the all-important, pre-purchase process.

Past the Price Point

Most franchises require purchasers that have a certain amount of in-cash reserves along with a minimum net worth. Smaller franchises will require less, but these amounts are still substantial. For example, Wendy’s needs $500,000 in liquid assets and $1 million net worth. Meanwhile, more sought-after, higher-end establishments like
the Twin Peaks’ franchises require $1.75 million in liquid capital and a minimum net worth of $5 million.

With bigger investments, often franchise owners will reap better results with a higher ROI. In the case of Twin Peaks, they recently reported 2018 was one of their most successful with YOY (year-over-year) sales, increased traffic overall and major improvements in guest experiences. By the numbers, this upscale sports lodge revealed a 6.7% increase in their YOY sales and a 3.25% rise in traffic.

More Intelligent Locations

Inside most franchise agreements, purchasers aren’t able to simply pick a spot where they want the new restaurant to appear and it will be approved. This is actually great news for investors because in many cases franchises have already done the homework about the real estate and market characteristics in the immediate area.

Think of it this way, the majority of new franchise locations are conversions of former dining locations keeping construction costs down. Other important location-based strategies pertinent to the approval process include:

• A minimum daily traffic count of tens of thousands of cars per day with direct access to the restaurant

  • Areas with strong employment presence given a heavy daytime work population
  • Standout perks like outdoor patio space, buildings with larger square footage,

    and plenty of parking

  • Leading high-population areas with mid-scale and preferably higher-end hotels and apartment complexes nearby

    It’s simple math when you consider it’s often much easier and faster to sell ten items for $10 rather than 100 things for $1 a pop to reach the same goal. With an already larger population in place with more money to spend, odds sway in favor of reaching higher profit margins.

    Openings and Experience

    Another requirement for many franchisees is they already have business management experience and preferably a restaurant background. Depending upon the particular franchise, the type and length of these experiences may vary. Opening multiple locations in a specific time frame is also a common requirement.

    In the case of Pizza Hut and Taco Bell, these franchises both require a minimum of three new restaurants within three years and Dunkin’ Donuts wants a minimum of five new locations after opening an eatery. Some requirements may offer a bit more wiggle room, with Twin Peaks asking for between three and five new establishments in some of their franchise agreements.

    Confidence and Trust

    Remember, this investment is a two-way street since the franchise is counting on the investor’s success to continue with their own, and vice versa. Be sure the corporation you choose to partner with is there for you in every way. If you have any questions about becoming a franchisee, please reach out and call the Twin Peaks franchise office today at (972) 941-3160.

    Whether you’re choosing us or one of our competitors, we’re so confident in your choice we’ll be happy to educate you on the process. We’ll show you how the path to Twin Peaks is the best option for your hard-earned investment dollars. We’re truly here for you and are behind your investment 100%, because we believe in you as much as we trust in our brand.

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.