How Do You Become a Starbucks Franchisee?

Starbucks has a specific approach to expanding its brand. Unlike many other international chains that franchise their operations widely, Starbucks has traditionally adopted a company-owned model for its stores. However, the process of running a Starbucks location is not entirely impossible. It is, however, complex and requires a thorough understanding of the company's franchising and licensing policies.

This well-known coffee giant does not offer franchising opportunities in the United States or many other countries. (In international markets such as the United Kingdom or the Philippines, Starbucks has started to offer franchising opportunities.)

Starbucks, like Chick-fil-A, is managed by the company itself. This approach allows Starbucks to maintain a high level of control over its brand, products and customer experience.

"I always viewed franchising as a way to get access to capital because you're using other people's money to grow, essentially,” Starbucks CEO Howard Schultz told Entrepreneur in 2003. “And we were dealing with a premium product — something that can be hard to learn, that you have to explain to the customer, that requires an educated staff. It would have been hard to provide the level of sensitivity to customers and knowledge of the product needed to create those Starbucks values if we franchised. You can be just as entrepreneurial and experimental in a company-owned model."

While franchising may not be an option for those in the U.S., it is possible to become a licensee with Starbucks — nearly 41% of Starbucks stores are licensed in the U.S. Like a franchisor, the company does help licensed stores with many aspects of the business, including store design, the Starbucks menu, equipment, training and support, food, promotions, and onsite visits. But unlike franchising, a licensee does not own the store; they are simply renting the Starbucks brand for a licensing fee.

The fee for licensing a Starbucks in the U.S. is hefty — roughly $315,000. Licensees will also need $700,000 in liquid assets to be considered for the opportunity.

Beyond financials, Starbucks looks for licensees who share the company's commitment to quality and customer service. Prospective licensees should have a strong business background, preferably with experience in the food-and-beverage industry. Additionally, they should have a deep understanding of the local market. They also need to already have an attractive real estate location where Starbucks would want to open and the resources to open that Starbucks. 

It's best to talk to Starbucks directly if you’re interested in licensing their coffee shop. You’ll have to fill up a form, and they’ll have to assess your qualifications before accepting you as a licensed operator of their brand. 

Overall, becoming a Starbucks licensee is a significant undertaking that requires a strong business background, substantial financial resources and a commitment to upholding the company's high standards.