Do you want to open up a specialty coffee business like Starbucks? A lot of small businesses are interested in opening a specialty coffee business due to the popularity and appeal of the well-known coffee shop brand.
However, there is a pressing question: “Can you franchise Starbucks?“ In this blog, we will discuss this question and the current state of the coffee industry. If the answer to this question is “no”, then we will go over some of the four top franchises for your first business.
Before we look at some of the alternatives, let’s take a closer look at how Starbucks does business. Learning about the history and operations of one of America’s largest coffee companies may give us an understanding of why it may be difficult to get approval from Starbucks to become a franchisee.
Once you learn about how Starbucks operates, you will be able to make better, more educated decisions regarding your future coffee business. Let’s begin this caffeinated journey to see what makes Starbucks successful and where you could fit into the exciting world of coffee entrepreneurs.
Starbucks Business
Starbucks, founded on March 30, 1971, in Seattle’s Pike Place Market, started as a small shop with a strong commitment to ethical sourcing and employee relationships. This evolved into the renowned “Starbucks Experience” we know today.
Before opening stores outside of the United States, Howard Schultz, CEO of Starbucks, made sure that there were adequate methods of interaction with customers and that there was consistent branding. In addition, Schultz implemented values at Starbucks that are taught to all employees.
Schultz decided to keep company-owned stores due to the need for employee training, which is an example of what we call a “business model” that puts the Starbucks experience first.
The business model has a focus on brand standardization and store operations so that coffee beans can always be perfectly brewed. Today, Starbucks operates as a global powerhouse, serving approximately 100 million customers daily across more than 38,000 locations in more than 85 countries.
Can you franchise Starbucks?
In the United States and Canada, the simple response is that Starbucks offers no franchises. Instead, they use a different strategy known as a licensing model.
Starbucks provides some selected partners an opportunity to operate a Starbucks store while strictly adhering to the extremely high brand standards. It is highly selective, prioritizing established institutional operators (like grocery stores, airports, or universities) over individual prospective licensees.
How many Starbucks stores?
There is an abundance of Starbucks locations within the United States that is quite extraordinary. In fact, it’s estimated that as of 2026, there will be about 16,868 total Starbucks locations throughout the entire United States.
No matter where you live, whether it’s a busy downtown area or in high-traffic areas such as grocery stores, there is no doubt you’ll have a Starbucks nearby.
The brand has successfully woven itself into the fabric of society by offering a consistent customer experience and a wide array of beverages.
Starbucks Income
There are numerous examples where Starbucks has shown an ability to be one of the strongest businesses against changes in the economy. It was able to build so much customer loyalty that even though they have some of the highest-priced products on the market, it still does not deter customers from going to their stores.
The average Starbucks store generates approximately $1.6 million to $1.8 million in total annual sales. This number is by far greater than most competitors.
Although there was a slight decrease in revenue compared to last year, the bottom line is very positive as well, with the company’s net worth being at $82B, second only to McDonald’s, which has a net worth of $173.335 B.
The Future of the Starbucks Brand
How far can Starbucks go in its climb to success?
The corporation will be continuing to expand into new markets via its use of mobile ordering and an enhanced digital technology system. There is little evidence to suggest that it will happen at all because the company continues to improve its supply chain management and store design.
Starbucks may see higher traffic as people return to shopping, but lower spend per order due to online ordering and multi-store visits.
They plan to add drive-thrus, speed up service, and cut costs to boost sales.
Can Starbucks change its core strategy?
In the U.S. and Canada, Starbucks uses a corporate-owned model but gives selected partners training and ongoing support to ensure quality and consistency.
If a Starbucks franchise doesn’t fit your budget or goals, what type of coffee business would you consider running? Would you want to operate at high-speed drive-thru locations, or develop a local community-focused coffee shop?
Can't Franchise Starbucks, So What Can You Do?
1. Open a Licensed Starbucks Coffee Store
Your first opportunity is to open a Starbucks licensed store. Although it’s not a franchise, opening an unfranchised store still provides numerous opportunities and operational support from Starbucks. After all, their reputation and registered trademarks are also at stake.
What Is the Cost of Opening a Starbucks Licensed Store?
First, you’ll need to have at least $700,000 in liquid assets. You’ll also need to cover the full startup cost, averaging about $315,000 per store.
Beyond the startup cost, you must secure a high-traffic location like a mall, grocery store, campus, or airport to ensure strong foot traffic.
The price of the build-out and initial inventory will depend on how you decide to bring out the brand standards in your store.
What are the Advantages and Disadvantages of the Starbucks Brand License
The advantages
Although it may appear as if you’re renting the name rather than being an owner of the business, it can be a wonderful chance to make money. When you sign up to join their group of authorized stores, you’ll have access to a comprehensive support network.
You’ll first have the benefit of providing all of the items on the menu, as well as integrating technology and enabling mobile ordering, which will build customer loyalty. You will also receive ongoing support through regional managers and a dedicated franchise support team.
The most significant advantages include a custom-designed store. Since it’s a licensed store, the parent company sends designers and architects to optimize the store’s layout and design.
The Biggest Benefit: Customized Store Design
What really gets me excited about this is the opportunity to create a custom store layout for your store.
Because it’s independently owned rather than corporate-run, the parent company typically won’t restrict your space choice. As long as the location is strong, you can choose a small storefront, arcade-style venue, food truck, or similar setup.
They’ll send their experts out to help you determine the best possible design for your Starbucks coffee shop, therefore, allowing you to develop a unique entry point to a busy location.
Check out this incredible Starbucks food truck!
The Disadvantages
Apart from the necessary financial data required to obtain approval for a site licensed by Starbucks, there are a couple of additional barriers to entry as well.
Starbucks sells High-End, Premium Coffee
At first, this may seem like no barrier. However, based on the demographic area your potential customer base lives in, you should check whether or not they can afford the price of high-end coffee.
A brand name, plus a loyalty program, allows Starbucks to charge a higher premium than its competitors. The same idea could also work if a new Starbucks were opened locally; however, when the local market cannot afford the specialty coffee costs, then that becomes a lost opportunity.
Starbucks Store Locations
A perfect retail location for a new Starbucks will require approval of a license. However, it will come at an added expense in the form of average rents.
This focus on premium, high-traffic venues can be prohibitive for those opening their first business, even though a typical Starbucks generates approximately 1.6 million to 1.8 million in annual revenue.
2. Open a Starbucks Franchise Abroad
If you are planning on leaving the United States or Canada, then the franchise model will be perfect for you. On the other hand, if you know that you want to own a Starbucks store, then your only consideration is where you can go to establish your new coffee shop franchise.
At first glance, starting a business outside of your current country may appear to be a daunting and unrealistic task. However, with over 38,000 locations in 85 different countries worldwide, Starbucks has become one of the world’s most prominent coffeehouse chains.
In countries like China and India, local franchise owners have enhanced the brand by delivering both premium products and a high-end coffeehouse experience.
Requirements for Opening an International Starbucks Franchise
The amount of time it takes for an organization to grow is typically proportional to how well that same organization can develop Starbucks franchisees.
Therefore, there are several basic requirements to be able to open a Starbucks franchise:
- Past business experience in the food and beverage industry.
- Experienced in managing multi-site businesses.
- Willingness to have a minimum of twenty new stores opened in five years.
- Liquid funds equal the value of $500,000 in financing.
3. Open an Actual Coffee Franchise in the USA
If you want to avoid licensed retail locations and overseas relocation, there are many independent coffee franchise options available.
Some of the brands that offer franchises include Dunkin’ Donuts, Biggby Coffee, and the Dunn Brothers Coffee franchise. Additionally, Dunkin’ Donuts is considered the second-best franchise alternative to Starbucks, with an estimated net worth of $10 billion.
Dunkin’ Donuts uses a licensing model, unlike Starbucks, enabling expansion to over 3,000 locations worldwide.
How much does a Coffee Franchise Cost?
As with any franchise, there are certain financial requirements. Here we summarize the three examples:
Dunkin’ Donuts Franchise Costs
Locations: 8,500+
Royalty Fees: 5,9%
You cannot say it enough – the Dunkin’ Donuts name is your greatest asset when beginning a joint venture with the franchisor.
As an established franchise company, Dunkin’ Donuts provides all of its franchisees with a six-week intensive training program covering everything necessary for success.
Biggby Coffee Franchise Costs
Locations: over 300;
Royalty Fees: 6%;
They help you by covering a great deal of the initial costs for setting up a new Biggby Coffee Store franchise fee, as well as the needed investments. They give you an enormous amount of assistance from the beginning through the entire length of your franchise with them.
Dunn Brothers Coffee Franchise Costs
Locations: 57+ royalty Fees: 5%
Dunn Brothers has all franchise owners on its team. As such, they have learned well how to make each franchise owner successful in opening a new location or any other type of business.
Each new member of the company is given strong support by Dunn Brothers through a business manager who has already been in business. This manager guides them in improving their skills in managing customers and merchandising.
4. Open Your Own Independent Coffee Shop
The shift to a freelancer workforce for many is driving business opportunity after business opportunity. While you will never hold a 40% share of the U.S. coffee market as Starbucks does, you can build your own unique atmosphere and brand.
Cost of Starting Your Own Coffee Shop
This one is impossible to estimate as it is entirely up to you! Things to consider when building up your budget, though, include:
Legal Fees
The legal fees associated with hiring a lawyer for your company depend on how many people are involved in your start-up. If you’re doing everything by yourself, then the legal fees should be lower than if you have other investors, etc., who need to be included.
The more complicated the structure of your start-up is, the higher the legal fees could end up being to get set up legally.
Location
Your rent or price to purchase the land you’ll build your shop on, and its overall square footage, will determine the space’s total rent or lease expense. This can affect the amount of rent you pay each month, depending on the size of the space or its location within your city.
Decoration
As with all things, the cheaper option is going to be less decorated. However, the more you decorate, the more “unique” your shop will appear. And the more unique your shop appears, the more niche it becomes. So, keep this in mind when deciding what type of decorations to use.
Running Costs
Most new business owners do not realize they need to account for these expenses. They usually consist of employee salaries, employee benefits, supplies, utility bills, and equipment maintenance. If you rent, then rental payments will typically be a monthly operating expense.
Advertising
Do not underestimate the time and money required to properly market your business. You may need to test different marketing methods to effectively reach your target market.
This experimentation process can be costly and will continue to cost you money as long as it continues.
FAQs
No. In the U.S. and Canada, Starbucks operates through its licensed stores concept rather than traditional franchising.
Instead, they operate a licensed store model. While you own the business, Starbucks maintains heavy involvement in the store’s operations, menu, and design to ensure brand consistency.
Those who want to buy into a true franchise can only do so by looking internationally or at other franchise opportunities.
Opening a licensed Starbucks store is an expensive venture. The cost of opening a licensed Starbucks store varies by area and type of store. However, most people will require at least $500,000 in cash and other liquid assets to be eligible for a license.
To begin a global Starbucks franchise, the company is looking for skilled multi-unit operators. The key requirements are as follows:
*Experience: Industry experience in the food and beverage industry.
* Expansion Plans: Opening 20 or more locations over the next five years.
*Funding: At least $500,000 available (liquid) to support franchise development.
*Leadership: Multi-location management/operations experience.
If you are looking at a traditional franchise model here in the U.S. to get into, several competing franchises have very well-developed support systems, see below:
*Dunkin’ Donuts: Dunkin’ has by far the most locations in the country, with over 8,500 and also has an intense 6-week training program.
*Biggby Coffee: Biggby is known for providing its franchisees with high levels of architectural and marketing support.
*Dunn Brothers Coffee: Dunn Brothers is a franchise-led company that emphasizes highly local management and customer service.
An independent coffee shop is usually cheaper because there are no franchise fees and you control your own setup costs, but you also carry all the risk and responsibility. A franchise like Starbucks costs more upfront but offers a proven system, brand recognition, and support.
Final Thoughts
Opening a licensed Starbucks coffee shop in the United States may not be an option to open a franchise, but it will still offer the same excitement, promise, and challenges.
Although many locations are offering the Starbucks experience, as of 2026, there remains space for all players in the coffee market. Whether you choose a licensed location, an international franchise, or an independent coffee shop, seek advice from a franchise ownership expert.
Before making a final choice locally or abroad, you must seek the opinion of someone knowledgeable about the franchising business. That will assist you in making what may be the best decision for your career.
Brand recognition and a loyal customer base are key, but navigating financial details and licensing agreements requires professional guidance.
Are you ready to begin your new life as a part of the coffee industry? Contact FranchiseCoach today and get expert advice concerning franchise opportunities.
