Is It Possible to Become a Starbucks Franchise Owner?

Unlike many food and beverage giants, Starbucks does not operate on a franchise model. Instead, the brand has traditionally adopted a company-owned model for its stores.

The reason behind the decision? CEO Howard Schultz wants to have a “fanatical” level of control over his business, he wrote in his 1997 book, “Pour Your Heart Into It."

"I always viewed franchising as a way to get access to capital because you're using other people's money to grow, essentially,” 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."

Starbucks did, however, eventually began offering franchise opportunities in select locations such as the United Kingdom and the Philippines. 

In the United States, running a Starbucks location is not entirely impossible. However, it requires a complete understanding of the company’s franchising and licensing policies. 

How To Open a Starbucks

While franchising may not be an option for entrepreneurs in the U.S., it is possible to become a licensee with Starbucks. In fact, nearly 41% of Starbucks stores are licensed in the country. This began in 1991 when Starbucks started allowing Host Marriott to own and operate locations in airports, eventually leading to more licensed stores in hospitals, colleges and retail stores. 

Like a franchisor, the company does help licensed stores with many aspects of the business, including store design, the menu, equipment, training and support, food, promotions, and onsite visits. But unlike franchising, a licensee does not own the store. Instead, Starbucks licensees are renting the Starbucks brand for a licensing fee. The fee doesn’t come cheap at approximately $315K. Additionally, licensees will need $700K in liquid assets to be considered for the opportunity.

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

Starbucks Franchise Alternatives

If you have your heart set on opening a coffee franchise, not to worry, there are plenty of options. Here’s three to kickstart your search: 

Dunkin’

• Investment Range: $526,900–$1,809,500
• Unit Count: 13,200+

BIGGBY COFFEE*

• Investment Range: $246,305–$564,626
• Unit Count: 379

Scooter’s Coffee

• Investment Range: $797,000–$1,341,500
• Unit Count: 780+

If it's Starbucks you want, you will have to speak to the brand directly about licensing their coffee shop. You’ll need to fill out a form, and they will have to assess your qualifications before accepting you or not.