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FAT Brands INC acquired twin Peaks on 1st October 2021. Andy Wiederhorn, CEO of FAT Brands, says that Twin Peaks’ brand can grow even faster under the control of his company. “Twin Peaks has tremendous potential to grow not only in the U.S. but globally,” Wiederhorn said. “We look forward to building on the solid foundation that Garnett Station Partners created.
But, can we believe the man who has already been alleged to have provided public statements which were materially false and misleading at all relevant times?
Twin Peaks franchisee is bold, from its double-meaning name and slogan to its lodge-themed décor and scantily-clad female servers. The chain’s servers wear low-cut plaid tops and short shorts, a level of scantiness that has caused the organization to be compared to Hooters. The company has been quite successful at attracting franchisees for being one of a kind.
While some Twin Peaks franchise owners have discovered that the franchisor will look for any excuse to terminate their franchise agreement, and some have even been terminated for frivolous reasons.
There are several other reasons why a franchisor might not want to buy a Twin Peaks franchise, including market saturation, the reputation of the brand, and the cost of a Twin Peaks franchise. But now, with the overly aggressive global franchising company FAT acquiring Twin Peak, things are not getting any easier.
Twin Peaks brand has a large following, but alongside it comes a host of issues: a lot of social and political backlash, a higher price point than your usual bar, and a somewhat generic menu.
Initial Financial Investment And Ongoing Fee:
|Initial Franchise Fee
$1,424,550 – $3,606,000
Net Worth Requirement
Additional Royalty Fee
Term of Agreement
Is the franchise term renewable?
Twin Peaks Business: Overview
Twin Peaks is a quintessential American restaurant that features “breastaurants” and mountain aesthetics throughout its locations. It offers patrons an enjoyable dining experience with the company of beautiful waitresses and bartenders serving quality made-from-scratch food, 29° draft beer, and sports on wall-to-wall TVs.
The Franchising of the Twin Peaks restaurant started in 2007. After opening an initial few restaurants in Texas, they started expanding in other parts of America. Twin Peaks has 85 locations as of now, including company-owned and franchise.
The Top Reasons For Not Buying Twin Peaks Franchise:
#1 High Cost of the Franchise:
You’re not just getting a fast-food chain with low overhead and high profits when you buy a Twin Peaks franchise. Twin Peaks franchise owners spend more than $1 million for startup costs and more than $100,000 per year to maintain the restaurant, which is why it isn’t probably best suited for people who are willing to put moderate money in a franchise. The cost of real estate is high for Twin Peaks as they are large format restaurants, and the cost of equipment and staff uniforms is considerably increased.
Twin Peaks’ commitment to its signature televisions doesn’t end with the quality — they’re also evident in all locations and always positioned at a perfect height for both seated and standing customers. Each restaurant has multiple TVs, and all of them are high-resolution plasma screens that provide the ultimate viewing experience. That drives up cost along with regular maintenance.
Twin Peaks attracts customers by frequent endorsements through sports and media celebrities. The cost of endorsement through the top-ranking stars required for the brand is itself quite huge.
#2 Twin Peaks Need To Reinvent Its Marketing Strategy
Twin Peaks, a franchise for fast-casual dining, has to reinvent itself if it wants to remain a strong competitor in the food industry. The brand is known for its scantily dressed waitresses. Still, this gimmick is no longer as effective as it once was — a move toward a more modern and high-quality menu will attract new customers and introduce the brand to an entirely new generation.
#3 New Franchisee Of Twin Peaks Need To Level Up
Twin Peaks is a sports bar franchise that has yet to establish a robust and definitive brand identity. Its menu items are generic and relatively pricier than most competitors, while its environment and staff aren’t unique or memorable. Though promising in some respects, this entrepreneurial business would likely struggle to compete with similarly-minded chains on a national scale. As a new franchisee, you have to establish yourself and put additional effort into staying above your competition.
#4 Twin peaks Food Menu Has No Delight
Although Twin Peaks prides itself on being a sports bar, patrons have shown a lack of interest in the bar’s food and drink menu. Twin Peaks needs to rethink its menu development and redesign its dining space to accommodate more private functions to capture a larger market share. While the bar currently serves as a popular destination for sports fans, attracting the foodies is tricky for Twin Peak. Hence, you should be aware that you are not investing in the food industry; instead, it’s more of the entertainment industry.
# 5 Breastaurants! Are You Ready For It?
Twin Peaks is the most famous breastaurant in America, but it isn’t for everyone. Since its inception, the restaurant has expanded to 30 countries. However, many communities have pushed back against the franchise due to its objectifying women and sexist marketing strategies. Should you open a breastaurant? Before you go forward with any big plans, consider your community’s values, ethics, and culture.
Franchising Business Benefits And Pitfalls:
If you have got enough capital, Franchising could be a great business opportunity for you. It is a quick way to own a business capitalizing on the formula of a successful brand without starting things on your own from scratch. Though Franchising is lucrative, it is not always the best of investments. The many pitfalls of Franchising could be:
- Higher costs in terms of the cost of buying a franchise and service fees.
- Restrictions on the business by the franchise owner.
- Intrusive franchisor monitoring
- Risk of brand/ company going out of business
- Any wrong/negative reputation of one franchise affects the rest.
- It could be challenging to resell the franchise if need be.
- Sharing of profit with the franchisor
- The inflexibility of the franchising business model may make it difficult for you to bring changes in the business to suit the market.
We have researched and analyzed the Franchise model of Twin Peaks for you to evaluate for your business investment:
When you think about it, nearly every Twin Peaks location in the United States is within a mile or two of another ‘breastaurant.’ The clientele at these locations are fickle and will soon tire of their favorite franchise doesn’t change with the times. The company needs to seize this opportunity to reshape its business model to compete in this niche market.