Bottom line
- Total investment $3.0M – $7.6M including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $5.6M/year (median $5.5M).
- Rated MODERATE with a risk score of 61/100.
- System growing at 21.3% CAGR over 3 years with 108 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Twin Peaks unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Twin Peaks units return on equity?
Equity IRR · 5-yr
23.5%
2.88× MOIC
Year-1 DSCR
3.71×
EBITDA ÷ debt service
Equity required
$28.3M
on $47.6M purchase
Total debt
$19.3M
SBA $5.0M + senior + seller note
Overview
About
Twin Peaks is a sports bar and restaurant franchise featuring casual dining with an emphasis on food, drinks, and sports entertainment in a themed environment. Franchisees manage day-to-day operations including staff hiring/training, inventory management, customer service, and marketing within their protected territory. Revenue streams include food and beverage sales with the franchisor collecting 5% of gross sales as royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Twin Peaks presents moderate-to-cautious risk: strong average unit volumes ($5.6M) are offset by non-disclosure of net income, corporate litigation history, slow unit growth, and high upfront costs that lack transparent ROI justification.
Score breakdown · what drove the 61 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 prevents ROI analysis on $2.96M-$7.63M investment
- 02HIGHMultiple securities litigation cases (pending class action + 2 settled cases) indicate corporate governance/disclosure problems at parent FAT Brands
- 03MINORSlow unit growth of 5.7% YoY with 108 total units suggests market saturation or franchisee satisfaction issues
- 04MEDHigh franchise fee ($50K) combined with undisclosed profitability creates opacity around true earnings potential
- 05MEDMature 15-year term locks franchisees into long commitment with limited exit flexibility in uncertain market
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
86 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Twin Peaks · FDD (2025) PDF