How Much It Costs To Own a Starbucks Franchise

How Much It Costs To Own a Starbucks Franchise

Starbucks store ©
Starbucks doesn ’ thymine technically offer franchises, as all of the sword ’ s cosmopolitan stores are company-owned. But if you ’ rhenium concerned in a Starbucks franchise, you ’ re not wholly out of luck. The company does license some of its stores, which from an operational point of view is quite similar to being a franchise owner. Better even, the Starbucks license opportunity is actually fairly large. Out of the more than 15,000 Starbucks outlets throughout the universe, 6,497, or about 42 %, were licensed as of 2021. If you choose to go this route, here are some of the costs — and hurdles — you should anticipate .
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Initial Start-Up Funding

The average monetary value to license a Starbucks shop is $ 315,000. You ’ ll besides need $ 700,000 in liquid assets to be considered .

What Is the Concept Behind Licensing Instead of Franchising?

The theme that Starbucks would license rather than franchise its stores comes from its CEO Howard Schulz. The progressive and democratic founder has long believed that the complexities of providing a choice Starbucks experience for customers, from the explanation of its products to the actual presentation and operation of its stores, was best controlled by the company itself. frankincense, franchises are not part of the party ’ second business model .
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But the doctrine doesn ’ triiodothyronine end there. The company besides leverages its license model by maintaining sealed requirements meant to increase sales for the business. More specifically, it doesn ’ triiodothyronine simply offer licenses to anyone who applies. Rather, the company only accepts licensees who presently have thriving businesses in good locations that Starbucks can capitalize on. For exemplar, the company actively seeks to add license Starbucks locations to these types of existing industries :

  • Business
  • University
  • Fine dining
  • Government or military facility
  • Healthcare
  • Hotel and lodging
  • Travel and recreation

Reading through the list, it ’ randomness obvious how the Starbucks model makes sense. Adding a Starbucks to a high-traffic clientele or university address, or a hotel in a popular tourist address is about a sure-fire manner for the caller to generate extra tax income. Plus, the company has the total benefit of working with a licensee who already has a prove track record in operating a business .
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Is a Licensing Package Similar to Franchising?

For the start-up tip, along with ongoing expenses, Starbucks helps licensees operate a successful business. After all, that is why the company doesn ’ triiodothyronine offer franchises in the first space — it wants control over how the business appears, giving a coherent experience to customers everywhere. then, if you successfully get a Starbucks license, you can expect the caller to help you with some or all of the follow :

  • Store design
  • The Starbucks menu
  • Equipment
  • Training and support
  • Food
  • Promotions
  • Onsite visits

In early words, you ’ ll receive a set of the same type of support as a franchise owner with another caller would .

What Is the Process for Licensing a Starbucks?

The details of obtaining a Starbucks license are extensive, but the basic draft of how to apply is elementary. here are the steps :

  • Visit the Starbucks website and register yourself as a potential licensee.
  • Complete a formal application.
  • Indicate your preferred business location.
  • Supply the company with your current cash position, along with your assets and liabilities.
  • Add any supplemental information about why your location is particularly appropriate for a licensed Starbucks store.
  • Submit your application and wait to hear back.

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obviously, these are just the first steps in the action. If the caller shows matter to, you can expect a web site visit and a detailed examen of your financials and your business process, along with consort paperwork .

A Crack in the System

While Starbucks doesn ’ thymine offer any franchises in the U.S., or indeed any separate of North America, it does have a circumscribed count of franchise outlets overseas, particularly in the U.K. If you reside oversea and are a successful business owner, there is a gamble you may qualify for a Starbucks franchise that way. however, reservation standards are high. In addition to being an owner or high-level director, generally in the food and beverage industry, you must have liquid assets of at least £500,000 ( around $ 630,636 ), a static fiscal situation and be willing to open numerous locations in a curtly period of time. In other words, unless you are a affluent and successful business owner who lives overseas, has across-the-board experience in the industry and the capital required to open multiple locations, you ’ re likely out of fortune .
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About the Author

John Csiszar

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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Category : Finance

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