Starbucks Franchise: Cost, License Fee & Requirement (Can Starbucks be franchised+ All you need to know) 

Are you a business person and would be interested in venturing into Starbucks as one of your income sources? Read on to know more about how the company goes about franchising, licensing, and the requirements. 

Starbucks does not offer franchises, but you can get a licensed Starbucks store that the company offers, which is quite similar to franchise ownership from an operational viewpoint. Instead of paying a franchise fee, you pay a licensing fee to get a licensed Starbucks store. I have a few friends who have expressed their desire to partner with Starbucks in their business locations to offer the highly loved Starbucks services and products. To help out business people who would want to have licensed Starbucks stores, I did comprehensive research to understand if Starbucks can be franchised and the cost and requirements needed. In this article, I have provided all the information you need to know about the Starbucks franchise.

Is Starbucks a franchise?

No, Starbucks is not a franchise. Starbucks does not offer franchises in any country in North America, including the U.S. 

The reason is that the company prefers to maintain and preserve the quality of its stores and services. The company wants total control over its stores’ appearance and to give all customers a consistent experience.

The company’s management believes its stores will lose quality and consistency if a franchise model is adopted. Therefore, all Starbucks stores worldwide are company-owned.

However, if you are intensely interested in a Starbucks franchise, all hope is not lost. Starbucks licenses a number of its stores, a model that is the same as being a franchise owner from an operational viewpoint. 

Additionally, there is a small number of Starbucks franchise outlets in countries such as the U.K. Therefore, if you reside in the U.K., there is a chance that you may get a Starbucks franchise. However, the standards to qualify for a Starbucks franchise are still very high.

Which Starbucks are franchises?

Starbucks does not offer franchises in North America. However, the company gives licenses to all persons meeting the set requirements.

As of 2021, out of not less than 15000 Starbucks stores worldwide, 6497, which translates to forty-two percent of the total, are licensed, which means that they are co-owned by Starbucks and the license holders.  

How to open a Starbucks franchise

If you live in the U.S. or other countries in North America, you cannot get a Starbucks franchise, but you can get a license. The process of obtaining a Starbucks license is pervasive. Listed below are the steps involved in obtaining a Starbucks license;

• Visit the official Starbucks website and register as a potential licensee.
• Fill in a formal application.
• Outline your chosen business location.
• Submit to Starbucks your current cash position, assets, and liabilities.
• Include any additional details on why your chosen location is ideal for a licensed Starbucks store.
• Submit your application and wait for feedback from the company.

If Starbucks shows interest in your proposal, they will visit the site as well as an in-depth assessment of your cash position, assets and liabilities; your business processes; and the associated paperwork.

If you reside in the U.K., you may qualify for a Starbucks franchise. However, you have to meet the following standards;

• Be an executive manager or owner in the food and beverage industry.
• A cash position of not less than $630636.
• Be in a stable financial situation.
• Be willing to open many Starbucks stores within a short period.

To meet these requirements, you must be extremely wealthy as well as a successful business owner living in the U.K.

What do I need to open a Starbucks Franchise?

As stated, Starbucks does not have the franchise option, but individuals interested in partnering with the organization can operate a licensed Starbucks store. In a licensing arrangement, the business person does not own the outlet, but it is controlled by the company itself. The licensing idea is based on the Starbucks CEO’s belief that only the organization itself can best control the complexities of offering a high-quality Starbucks experience to consumers.

The company fully understands its operations and is in the best position to provide its unique experience, from the explanation of the products and services to the actual operation and presentation of the stores. Therefore, before venturing into Starbucks, it is important to understand that Starbucks currently has licensed stores and a company-owned model, which means you will not own the Starbucks store but will be renting the brand and its image.

To open a Starbucks licensing store, you will need to have different elements that the company looks for. The factors that Starbucks assesses include local business practices, availability of parking, traffic per day, consumer behavior in the area, neighborhood income, economic conditions, crime rates in the area, and proximity to other businesses. You also need some finances for the license fee and required fixtures for the store.

Therefore, if you are interested in obtaining a Starbucks license, ensure you have a prominent location with a high footfall and the required finances and apply for the permit through the organization’s website.

The good thing about getting a Starbucks licensed store is that the organization provides customizable and unrivaled store designs, seasonal promotions, exclusive Starbucks bakery, and food program, Starbucks equipment, menu and training, ongoing support and consulting, proprietary fixture and equipment package, onsite visits, and comprehensive merchandise assortment.

FAQs

Can Starbucks be privately owned?

No, Starbucks utilizes a company-owned model. The company prefers complete control over its business appearance and customer experience.

How expensive is a Starbucks franchise

In North America, Starbucks offers potential store owners licenses instead of franchises. You need $315000 to acquire a Starbucks store license if you reside in this region. Additionally, you must have a cash position of not less than $700000.

If you reside overseas, for instance, in the U.K., you can acquire a Starbucks franchise if you prove to the company that you have a cash position of not less than $630636.

How much does it cost to open a Starbucks Franchise?

The total investment required to open a Starbucks licensed store is $315, 000 for the license and key fixtures. Additionally, to be considered for a licensed store, you also need $700,000 in liquid assets.