If you're an aspiring entrepreneur or investor researching coffee shop opportunities, you've likely asked the common question: “Is Starbucks a franchise?” While Starbucks is a global coffee empire with over 38,000 locations, the answer to this question isn't as straightforward as you might think.
In this definitive guide, we'll break down everything you need to know about Starbucks' business model, whether it offers franchising opportunities, how its licensing structure works, and what alternatives are available if you're looking to own a coffee business like Starbucks.
Starbucks operates on a non-franchise model, but that doesn’t mean every store is corporately owned.
Here’s a closer look:
These locations are fully owned and operated by Starbucks Corporation. Starbucks handles:
Store management and staffing
Inventory and product delivery
Marketing and branding
Training and customer experience
Over 60% of Starbucks locations worldwide fall under this category.
Instead of franchising, Starbucks uses licensing agreements with partners in specific markets (like airports, universities, hotels, and grocery stores). These partners:
Pay Starbucks a licensing fee
Must follow strict brand guidelines
Receive access to Starbucks products and training
The key difference between licensing and franchising lies in control. Starbucks retains more control over its licensed stores than it would in a typical franchise model.
Why Doesn’t Starbucks Franchise?
Starbucks has deliberately avoided the franchise model since its founding. Here's why:
Franchising often sacrifices a degree of brand consistency. Starbucks values uniformity in customer experience, and direct control allows tighter operational standards.
The company views itself as a premium, experience-driven brand. Franchising could risk diluting the brand in pursuit of profit.
Starbucks is focused on sustainable growth over fast, widespread expansion. Company ownership helps it scale at its own pace while protecting its ethos.
Even though you can’t buy a traditional Starbucks franchise, you can still operate a Starbucks through a licensed partnership.
Here’s how:
Existing ownership of a high-traffic retail location
Alignment with Starbucks brand and values
Ability to meet investment and operational standards
Solid financial background and retail experience
Submit a Licensing Application via Starbucks’ official website
Business Evaluation: Starbucks assesses your location, business experience, and alignment with their brand
Approval & Agreement: If approved, you sign a licensing agreement with Starbucks
Training & Setup: Starbucks trains your staff, helps design the layout, and provides ongoing support
Investment Estimate: Licensed store setup costs typically range from $315,000 to $500,000+ depending on location and buildout.
| Aspect | Licensing (Starbucks) | Franchising (e.g., Dunkin') |
|---|---|---|
| Ownership | Licensor retains more control | Franchisee has operational autonomy |
| Branding | Strict brand compliance | Brand standards, but more leniency |
| Initial Fee | Licensing fee only | Franchise fee + royalty |
| Training & Support | Provided by Starbucks | Provided by franchisor |
| Profit Potential | Lower margins, higher brand prestige | Potentially higher margins, more flexibility |
| Exit Flexibility | Subject to licensing terms | Often includes buy-back or resale options |
Can You Invest in Starbucks in Other Ways?
If you’re passionate about Starbucks but can’t own a store, here are three alternative investment options:
Invest in the company directly through the stock market. As of 2025, Starbucks continues to deliver consistent dividends and long-term growth.
Inquire about local Starbucks licensees seeking investors or partners. This is more common in high-traffic environments (like airports or hotels).
Launch your own premium coffee brand using lessons from Starbucks’ success. Many entrepreneurs opt for this route and create unique café experiences with franchise potential.
If you’re specifically looking to own a coffee franchise, here are some popular alternatives:
| Franchise | Initial Investment | Units Worldwide | Notes |
|---|---|---|---|
| Dunkin' | $437,500–$1.8M | 13,200+ | Strong U.S. presence, flexible models |
| Tim Hortons | $298,000–$1.5M | 5,400+ | Dominant in Canada, expanding globally |
| Dutch Bros Coffee | $150,000–$1M | 800+ | Drive-thru focused, young demographic |
| The Human Bean | $250,000–$850,000 | 300+ | Drive-thru specialty |
| Scooter’s Coffee | $512,400–$860,000 | 700+ | Fast-growing U.S. chain |
Yes, but the margins are typically thinner than traditional franchises due to licensing fees and strict control. However, brand recognition and foot traffic are high.
Franchising gives more independence to the operator, while licensing (as Starbucks uses) keeps more control in the hands of the brand owner.
Starbucks uses international licensing and partnerships for global expansion. In many countries, they work with regional conglomerates (e.g., Alshaya Group in the Middle East, Tata Group in India).
Starbucks doesn’t franchise—and it likely never will. But for the right investor with the right location, a Starbucks license can still be a profitable and prestigious opportunity.
However, if you're looking for more flexibility, faster entry, or a lower-cost option, many strong coffee franchise alternatives exist.
Want to enter the coffee business with a franchise? Start with a free franchise consultation and explore dozens of opportunities that match your budget, goals, and lifestyle.
Starbucks originated in Seattle, Washington (U.S.) and has grown into a cultural staple across North America, particularly in both the United States and Canada. With thousands of Starbucks locations across these two countries, many entrepreneurs and investors naturally assume it must be franchised—just like Dunkin’ or Tim Hortons.
But Starbucks takes a different approach.
Over 15,000+ locations in the U.S.
Majority are company-owned, especially in major cities and suburban retail centers
Licensing opportunities exist in high-traffic, strategic venues such as airports, colleges, hospitals, and grocery chains (e.g., Target or Safeway)
Example: You might see a Starbucks inside a Barnes & Noble or an airport terminal — these are typically licensed, not franchised.
Over 1,400+ stores across Canada
A blend of company-owned and licensed stores
Major licensing partners include hotel chains, universities, and travel hubs
Starbucks Canada is a subsidiary of Starbucks Corporation (USA), but operates with regional leadership and strategies adapted to Canadian markets
Note: In Canada, Starbucks competes heavily with Tim Hortons, which does use a traditional franchise model—making the distinction even more important to clarify.
While traditional franchise opportunities don’t exist, licensing is available in both the U.S. and Canada — but is typically reserved for:
Experienced multi-unit operators
Established retailers with prime locations
Businesses operating in non-traditional venues (airports, hospitals, schools)
Both Starbucks U.S. and Starbucks Canada require that licensees adhere to strict operational and brand standards, making the experience for customers virtually indistinguishable from company-owned locations.
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