Twin Peaks Franchisees Pursue Ownership After FAT Brands Bankruptcy

Twin Peaks is entering a new chapter after the bankruptcy and breakup of parent company FAT Brands. A group of three longtime Twin Peaks franchisees operating under the name Summit Acquisitions has stepped in to help lead the brand after creditors acquired the 115-unit chain through a $359.5 million credit bid, converting debt into equity. Over the next year, Summit will oversee the business on behalf of the bondholders before ultimately seeking to purchase the company outright, creating the unusual scenario of franchisees transitioning into ownership of the franchisor itself.

According to John Hong, founder and principal of Summit, and Roger Gondek, president and chief operating officer of Twin Peaks, the new structure is designed to give the brand the operational support and investment it lacked during FAT Brands' financial struggles. While Gondek said FAT Brands largely allowed Twin Peaks to operate independently, the parent company's deteriorating financial position limited the resources available for growth, causing expansion and innovation to stall. Leadership believes the franchisee-led ownership model will provide stronger alignment between corporate leadership and operators in the field.

More broadly, the transaction represents a rare example of franchisees taking a direct leadership role in rescuing and eventually acquiring their franchisor. If successful, the transition could become a notable case study in how experienced operators can stabilize a franchise system during financial restructuring while aligning ownership more closely with the interests of franchisees.