No Starbucks franchise fee is required after the company transitioned from traditional Starbucks franchises to corporate-owned with licensed stores.
Licensing Costs and Requirements
A licensing fee is required for Starbucks-licensed stores. The average licensing cost to open a Starbucks is a $315,000 licensing fee and a $700,000 net worth requirement.
Owning any business involves risk and reward. For comparison, the total investment to begin a McDonald’s franchise ranges from $1,008,000 to $2,214,080. This includes a $45,000 initial franchise fee.
Starbucks prefers licensing to keep control over quality. As a licensee, you would rent the brand for a licensing fee, not own the store as a franchise owner would.
Application Process
To apply:
- Register yourself as a licensee
- Complete an application
- Indicate your location
- Supply cash position and assets/liabilities
Profitability and Support
Though not a franchise, a licensed Starbucks has an independent business model with a long history of success and profitability. Starbucks is a world-renowned coffee retailer with over 28,000 stores in over 60 countries offering a high-quality coffee experience.
According to reports from owners, profits range $50,000 – $200,000 annually. The average revenue per store is roughly $1.2M. With proper management, you could potentially earn lucrative returns.
The average Starbucks license owner earns significantly more than many other business ventures.