In the coffee world, few names hold the weight of Starbucks. With over 15,000 locations across the United States, it is no surprise that many entrepreneurs are eager to tap into the success of the Starbucks brand. The idea of owning a Starbucks franchise feels like a golden ticket. After all, who would not want a slice of the most recognisable coffee business in America?
But here is the twist most people don’t expect: the Starbucks franchise does not exist. Despite its global presence and booming popularity, Starbucks has never followed the typical franchise model. Instead, it operates primarily through company-owned stores and a select number of licensed locations, which are only available to some specific business partners.
Still, this is not the end of the road. It is where real opportunity begins. If you have been exploring the Starbucks franchise model as your entry into the coffee industry, this article will show you smarter paths.
From understanding the Starbucks licensed store system to discovering profitable coffee shop alternatives, we will unpack what you can do instead and also show you how to become a successful franchise owner.
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Key Takeaways
- Starbucks does not franchise, it operates through company-owned stores and a limited licensed store model for select partners.
- Licensed Starbucks stores require significant capital and are typically only available to large, established businesses.
- Profitable coffee shop alternatives like Dunkin’, PJ’s Coffee, and The Human Bean offer real franchise opportunities for entrepreneurs.
- The coffee industry remains wide open, and with the right strategy, you can build a thriving business that does not rely on the Starbucks name.
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Can You Franchise a Starbucks?
Starbucks began as a single store in Seattle’s Pike Place Market in 1971, selling whole coffee beans, not cups of brewed coffee. It was not until Howard Schultz joined in the 1980s, after being inspired by Italy’s coffee culture, that Starbucks evolved into the espresso-slinging, café-style brand we know today.
Under Schultz’s leadership, Starbucks expanded rapidly, but it did so on its terms, choosing a business model that prioritised brand consistency and customer experience above all.
Unlike most major fast-food or coffee chains in the United States, Starbucks never embraced traditional franchising. So, if you are wondering if you can buy a Starbucks franchise, the short answer is no.
The company has always been vocal about maintaining ownership and control of its stores to preserve the integrity of its brand. This means you cannot walk into Starbucks headquarters, pay a fee, and open a franchise the way you might with Dunkin’ or Subway.
Instead, Starbucks uses a different model: licensed stores. These locations look, feel, and operate like any other Starbucks, but they are owned and managed by approved third parties, typically large retailers, airports, or universities. Licensing allows the company to grow its footprint without giving up control, and it is very selective about who can operate these outlets.
For most entrepreneurs, that door is closed, which is why it is essential to explore Starbucks franchise alternatives or other ways to break into the booming coffee business.
How Starbucks Licensed Stores Work
While you cannot buy a Starbucks franchise, the company does offer something that resembles it: licensed stores. At first glance, they might look identical to your average Starbucks café, but behind the counter, the business structure is completely different.
These stores are owned and operated by external businesses that have been granted a license to use the Starbucks brand, systems, and products.
Starbucks licenses are not open to just anyone. In the U.S., they are typically awarded to large companies with proven retail or food service operations like airport concession groups, hotel chains, supermarkets, or university dining providers.
These partners pay for the right to operate a Starbucks location, but Starbucks remains deeply involved. It provides training, store design, product supply, and regular oversight to ensure that every customer receives the same experience they would in a company-owned store.
Becoming a licensed store operator is expensive and selective. The total investment can run between $665,000 to $4,460,000 per location, depending on the site and market. You will also need to meet strict requirements in terms of financial strength, location quality, and operational capacity.
For most solo entrepreneurs or small business owners, this route is out of reach. That is why understanding this model is important, not because it is easily accessible, but because it explains why the Starbucks franchise dream remains just that for most: a dream. The real opportunities lie elsewhere.
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Cost and Investment Breakdown for a Starbucks Licensed Store
If you are still considering the licensed route, it is important to understand what it takes financially. Opening a licensed Starbucks store requires a significant upfront investment, far beyond what most small business owners can manage.
Below is a breakdown of the typical costs involved.
| Expense Category | Estimated Cost (USD) |
|---|---|
| Initial Investment | $315,000 – $2,660,000 |
| Store Build-Out & Design | $200,000 – $1,500,000 |
| Training, Onboarding and Equipment | $80,000 – $150,000 |
| Initial Inventory & Supplies | $20,000 – $50,000 |
| Operational Capital (3–6 months) | $50,000 – $100,000 |
| Total Estimated Investment | $665,000 to $4,460,000 |
Note: These figures are based on industry estimates and Starbucks licensed store disclosures. Costs may vary significantly depending on location, lease agreements, and local construction rates.
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Steps to Become a Starbucks Licensed Store Owner
Getting approved to operate a licensed Starbucks store is not as simple as filling out a form and paying a fee. It is a selective process reserved for businesses that meet strict standards. If you are aiming to partner with Starbucks in this way, here are the key steps involved:
Submit a Business Proposal
The first step is submitting a well-structured business proposal that clearly outlines your company’s background, retail or food service experience, financial strength, and the specific location(s) where you intend to operate.
Starbucks is highly selective, so they want to see that your business not only has the operational capacity to manage a high-traffic coffee outlet but also aligns with their commitment to customer service and brand integrity.
Your proposal should demonstrate strategic thinking, a solid grasp of your local market, and a clear understanding of what makes Starbucks successful.
Crafting this kind of business proposal is not something you want to take lightly, and it is a skill we teach in-depth at the Entrepreneurs Success Blueprint Program (ESBP). The ESBP equips entrepreneurs with the tools to develop compelling, investor-ready proposals that open real doors of opportunity for you.
Pass Location and Operational Review
Once your proposal is received, Starbucks conducts a thorough review of your proposed site and your business’s operational readiness. They look for prime locations with strong foot traffic, demographic alignment, and a surrounding environment that matches the Starbucks brand image.
A suburban strip mall might not carry the same appeal as a high-traffic airport terminal or a university hub. Context and positioning matter deeply.
Beyond location, Starbucks digs into your operational capabilities. They assess whether your team has the systems, experience, and leadership to maintain their rigorous service standards. This includes staffing structure, customer service practices, and day-to-day management workflows.
The goal is to ensure a seamless Starbucks experience for every customer, regardless of who technically owns the store.
Negotiate the Licensing Agreement
If your business and location pass the initial review, the next step is entering negotiations with Starbucks. This phase is about aligning expectations, responsibilities, and long-term goals. Starbucks outlines the full scope of the licensing arrangement, including the use of their brand, store design requirements, product supply chain, and operational standards.
You will also agree on the financial terms. This may include the licensing fee, build-out costs, ongoing supply arrangements, and performance metrics.
Importantly, Starbucks retains significant control over how the store is run, from layout to product offerings and marketing execution. Every detail must reflect the Starbucks identity, and the agreement formalises that expectation.
These negotiations are typically structured, non-flexible, and guided by a clear mandate to protect the brand’s integrity at all times.
Complete Training and Store Setup
Once the agreement is in place, Starbucks shifts its focus to ensuring your team is fully aligned with its operations. Managers and key staff members are required to undergo comprehensive training led by Starbucks experts.
This covers customer service expectations, store culture, workflow systems, and quality control. Starbucks wants every customer interaction to feel indistinguishable from that of a company-owned store.
Simultaneously, your physical store setup gets underway. Starbucks-approved architects and contractors oversee everything from store layout to lighting, materials, and furniture, every detail must meet their global brand standards.
This part of the process is closely monitored to ensure the environment reflects the atmosphere Starbucks customers expect: welcoming, consistent, and premium. It is an intensive phase that leaves very little room for deviation, ensuring that the store is not just functional, but brand-perfect.
Launch and Operate Under Starbucks Oversight
After the build-out is complete and your team is trained, the store opens to the public, but your role as a licensed partner is far from independent. Starbucks maintains an active presence in the day-to-day operations through ongoing oversight.
This includes regular audits, performance evaluations, product compliance checks, and brand consistency reviews. Your store may be owned by your company, but it must operate as an extension of Starbucks itself.
From inventory management to seasonal promotions, everything runs through Starbucks’ established systems. Licensed store operators are expected to deliver not just sales but a flawless customer experience that aligns with the brand’s global reputation.
It is a partnership, but one with defined boundaries, built to scale Starbucks’ reach without sacrificing the identity that made it iconic.
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Top 5 Starbucks Franchise Alternatives You Can Invest In
While Starbucks keeps franchising off the table, several other coffee brands welcome entrepreneurs with open arms. These coffee shop alternatives offer proven business models, national brand recognition, and the freedom to own and grow your café without the red tape of Starbucks licensing.
1. Dunkin’
Among the most viable Starbucks franchise alternatives in the U.S. is Dunkin’, a legacy brand that has successfully transitioned from a doughnut shop to a dominant force in the coffee retail space. With a large franchising infrastructure and a loyal nationwide customer base, Dunkin’ offers entrepreneurs the opportunity to tap into a high-demand market with a business model that is both scalable and well-supported.
To open a Dunkin’ location, the initial franchise fee ranges from $40,000 to $90,000, depending on location and store type. The total investment required falls between $435,500 and $1.83 million, which covers build-out, equipment, inventory, and training.
Franchisees must have a net worth of at least $500,000, with $250,000 in liquid capital. Dunkin’ also charges a royalty fee of 5.9% and a 5% advertising fee based on gross sales.
The standard franchise agreement runs for 20 years and is renewable, providing long-term stability for committed operators. Notably, Dunkin’ offers generous incentives for veterans, including 20% off the franchise fee for the first five traditional restaurants opened.
With strong brand recognition, operational support, and flexible store formats including drive-thrus and non-traditional spaces, Dunkin’ remains one of the most accessible and profitable coffee shop alternatives in the U.S. market.
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2. The Human Bean
If you are looking for a Starbucks franchise alternative that combines drive-thru convenience with a strong operational model, The Human Bean stands out. Founded in Oregon and rapidly expanding across the U.S., this brand has built its identity around fast, friendly service and high-quality coffee without sacrificing efficiency. Its low-overhead drive-thru format is attractive to entrepreneurs aiming for a lean, high-volume operation.
Franchisees can expect an initial investment between $562,390 and $1,290,931, which includes site development, equipment, and initial inventory. The initial franchise fee is $30,000, and applicants must show a net worth of at least $500,000, with $250,000 in liquid capital.
The Human Bean offers a notable advantage over many competitors as it does not charge a royalty fee, which significantly boosts potential margins. Instead, franchisees contribute a modest 1% ad royalty fee.
Veterans receive added support with a 20% discount on the initial franchise fee, making it an appealing option for those transitioning into business ownership. With no royalty obligations and a simplified operating model,
The Human Bean offers a compelling, cost-efficient route into the U.S. coffee industry, particularly for entrepreneurs who want to avoid the complexity of full-service cafés.
3. PJ’s Coffee of New Orleans
For entrepreneurs seeking a coffee shop alternative with a boutique feel and a Southern flair, PJ’s Coffee of New Orleans presents a strong, brand-driven opportunity. Known for its small-batch roasting and locally inspired atmosphere, PJ’s has steadily expanded beyond its Louisiana roots to become a growing presence in the national coffee industry.
The initial investment ranges from $915,000 to $1.7 million, which includes everything from construction and equipment to initial inventory and training. The initial franchise fee sits between $15,000 and $40,000, depending on the store format.
Franchise candidates need a net worth of at least $500,000 and liquid capital of $175,000 to qualify. With an average unit volume (AUV) of $1,008,567, PJ’s offers a competitive return on investment, particularly in markets that appreciate a premium, community-focused coffee experience.
While its startup costs are on the higher end, PJ’s Coffee stands out among Starbucks franchise alternatives by offering a distinct brand identity, a well-rounded menu, and full support in site selection, training, and operations. It is ideal for franchisees who want to offer something different, but with the backing of an established system.
4. Scooter’s Coffee
For entrepreneurs prioritising speed, scale, and simplicity, Scooter’s Coffee offers one of the most efficient coffee shop alternatives in the U.S. Specialising in drive-thru coffee kiosks, Scooter’s has carved out a strong niche by focusing on quick service, compact store formats, and a consistent customer experience.
With over 600 locations nationwide and rapid expansion underway, it has become a top choice among investors looking for a streamlined entry into the coffee market.
The initial franchise fee is $40,000, with two main store formats to choose from. The drive-thru kiosk model, the brand’s signature format, requires a total investment between $954,650 and $1,523,400.
The drive-thru end cap format, typically part of a larger retail centre, ranges from $692,150 to $1,053,675. Prospective franchisees must meet a net worth requirement of $500,000 and have at least $200,000 in liquid capital.
Scooter’s charges a 6% royalty fee and a 2% advertising fee, both standard for franchises with national brand exposure. What sets Scooter’s apart is its focused operational model: limited menu, compact space, and a drive-thru-first approach that reduces staffing needs and overhead.
For entrepreneurs seeking a profitable, efficient Starbucks franchise alternative, Scooter’s delivers a well-defined path built for high-volume success.
5. Biggby Coffee
Biggby Coffee is one of the most accessible and entrepreneur-friendly Starbucks franchise alternatives in the U.S., especially for those entering the coffee business for the first time. With a colourful brand, strong community focus, and flexible store formats, Biggby has grown steadily across the Midwest and beyond. It positions itself as a people-first coffee franchise, known for its supportive culture and emphasis on franchisee success.
The initial franchise fee is $20,000, making it one of the more affordable entry points in the industry. Biggby offers several build-out options to suit different budgets and markets. A White Box Lease Hold location, ideal for shopping centres or strip malls, requires an investment of $296,250 to $658,000.
For entrepreneurs who prefer a standalone format, a Modular Location (a pre-fabricated drive-thru only building) ranges from $533,500 to $949,000, while a Site-Built Drive-Thru location, constructed from the ground up, has a projected investment between $412,972 and $1,011,500.
Franchisees pay a 6% royalty fee, which is in line with other national brands. What sets Biggby apart is its commitment to coaching, operational support, and its ability to adapt to various market sizes.
With its approachable costs, vibrant brand personality, and emphasis on building strong local relationships, Biggby stands out as a smart, scalable option for entrepreneurs seeking a practical alternative to the Starbucks franchise model.
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How to Choose the Best Coffee Shop Alternatives To Invest In
Choosing the right coffee franchise is not just about brand popularity, it is about finding a business model that fits your goals, lifestyle, market, and resources. While the Starbucks franchise path may be closed, these alternatives offer a wide spectrum of opportunities. But how do you know which one is right for you?
Clarify Your Business Vision
Before comparing franchise brochures or investment figures, get clear on your business goals. Are you looking for a drive-thru-only model that thrives on convenience and speed? Or are you more interested in creating a sit-down café that builds a loyal local following?
Some coffee shop alternatives, like Scooter’s Coffee or The Human Bean, are built for fast service, while others, like PJ’s Coffee or Biggby, allow more room for brand expression and customer experience.
Understanding the kind of business you want to run and how involved you want to be day-to-day is the first step in narrowing your choices.
Understand Your Local Market
Your franchise will live or die by how well it fits into your community. A bustling commuter town may respond well to quick-service models with minimal seating, while a college neighbourhood or historic downtown could be perfect for a boutique-style café with character.
Ask yourself: Who are your ideal customers? What’s the competition like in your area? Is there a gap in the market that a certain franchise could fill? Doing this research up front ensures that you are not just choosing a strong brand, but the right one for your environment.
Evaluate the Financials
Each brand comes with its structure of fees, costs, and capital requirements. You will need to consider the initial franchise fee, total startup investment, net worth and liquid capital requirements, and ongoing royalty and marketing fees. Some franchises may seem more affordable at the start, but could offer less operational support or slower revenue growth.
Balance affordability with value. A slightly more expensive brand that offers superior training, marketing support, and brand recognition could set you up for faster profitability and fewer operational headaches down the line.
Look at Long-Term Growth and Support
The right franchise partner does more than sell you branding rights, they walk with you. Look for brands that invest in their franchisees through operational support, ongoing training, localised marketing strategies, and supply chain stability.
Also, consider the franchise’s vision for the future. Are they innovating? Are they expanding into your region? Do they listen to franchisee feedback?
Choosing a franchise is not just about entering a system, it is about joining a network and aligning with a company whose growth strategy matches your ambitions.
Conclusion
The idea of owning a Starbucks franchise is undoubtedly appealing. It is a brand built on consistency, cultural relevance, and global prestige. But the reality is clear: Starbucks has never franchised its business and likely never will. While that may feel like a closed door, it opens a far more dynamic landscape for entrepreneurs who want to step into the coffee industry on their terms.
It could be through licensed store partnerships for qualified operators or exploring strong competitors like Dunkin’, Scooter’s, or Biggby Coffee, there are real, attainable paths to success in this space.
And for those willing to build something unique, starting an independent coffee brand offers creative freedom, ownership, and the chance to stand out in a saturated but still growing market. The Starbucks name may be off limits, but the coffee business is wide open.
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FAQs About How to Become a Starbucks Licensed Store Owner
Does Starbucks have a franchise?
No, Starbucks does not offer a traditional franchise model. All standard locations in the U.S. are company-owned. Instead, Starbucks uses a licensing model, which allows select third-party businesses, usually large retailers or institutions, to operate stores under its brand in locations like airports, universities, and supermarkets.
Can I buy a Starbucks franchise in the U.S.?
You cannot buy a Starbucks franchise in the U.S. Starbucks retains full ownership and operational control over its standard stores. Only through its licensing program can certain approved partners operate branded locations under strict guidelines.
What is a Starbucks licensed store, and who can own one?
A licensed store is run by an approved operator who pays to use Starbucks’ brand, products, and systems, but does not own the brand. These licenses are typically offered to experienced foodservice or retail operators with high-traffic locations and strong financial backing.
How much does it cost to open a Starbucks licensed store?
The total investment usually ranges between $665,000 to $4,460,000 or more, depending on location, design, and build-out. Starbucks also requires operators to follow its exact standards for branding, training, and operations.
What are the best alternatives to a Starbucks franchise?
If you are looking for accessible and profitable alternatives, top options include Dunkin’, The Human Bean, PJ’s Coffee, Scooter’s Coffee, and Biggby Coffee. These brands offer franchising opportunities with varying formats and investment levels.
What are the top 3 franchise businesses?
Based on brand recognition, support systems, and franchisee satisfaction, some of the top U.S. franchises include McDonald’s, Dunkin’, and Subway. These brands have decades of proven success and well-established systems for growth.
What type of business is Starbucks?
Starbucks is a multinational, publicly traded corporation. It operates in the food and beverage sector, specialising in specialty coffee and café experiences. The company manages a combination of company-owned and licensed stores globally.
What is Starbucks’ marketing strategy?
Starbucks’ marketing strategy is built on brand storytelling, customer experience, and lifestyle appeal. It focuses on creating a consistent in-store experience, emotional brand loyalty, and digital engagement through mobile apps, rewards programs, and personalised marketing.
Should I start my own coffee shop instead of franchising?
Starting your own coffee shop offers complete ownership and creative freedom. It may require more effort initially, but it also gives you control over branding, pricing, and customer experience, making it a viable option for entrepreneurs with a clear vision.
