You’ve heard of the Starbucks franchise, right?
The coffee chain is one of the most recognizable brands in the world, and they’ve been around since 1971. But what exactly does it mean to be a Starbucks franchise owner? And how much does it cost to start one up?
We’re here to break down everything you need to know about becoming a Starbucks franchisee, from the initial investment costs to the ongoing fees you’ll pay as a brand-owner.
How Much Is A Starbucks Franchise?
Starbucks is one of the most popular coffee chains in the world. The company was founded in 1971, and it has grown to be one of the largest coffee franchises in the world. Starbucks has more than 27,000 locations worldwide. If you’re interested in becoming a part of this franchise, you might be wondering: How much does it cost to open a Starbucks?
The cost to open a franchise can vary depending on location and what kind of store you want to open. But if we look at average costs for an opening day, it breaks down like this:
- $750 per square foot for rent or lease
- $75,000 for initial franchise fee
- $250 per month royalty fee (for as long as you’re operating)
What are the requirements for opening a Starbucks franchise?
To open a Starbucks franchise, you’ll need to first find a location. Once you’ve found the perfect spot for your business, you’ll need to get your funding in order and make sure that you meet all of the other requirements before applying for a franchise license.
Starbucks will review your application and, if approved, send you an offer letter that outlines your responsibilities as a franchisee. You’ll also be required to sign an agreement with Starbucks before they give you the go-ahead to open shop.
Once your business is open, there are several requirements that must be met during its operation:
- You must maintain a clean and orderly store at all times
- You must follow all health codes and regulations in place by local government agencies
- You must prepare and sell food items according to FDA guidelines
How much is the initial investment to open a Starbucks franchise?
The initial investment to open a Starbucks franchise varies depending on whether or not you’re opening a new location or if you’re joining an existing one.
If you’re opening a new location, you’ll need to pay the following fees:
- License fee: $10,000
- Initial franchise fee: $30,000
- Regional development fund fee: $20,000
- Training and orientation fee: $10,000
- Pre-opening marketing fee: $30,000
- Architectural fees (if applicable): Varies based on location size and building requirements
What kind of support does Starbucks provide for its franchisees?
The incredible support that Starbucks provides for its franchisees is a cornerstone of our success. The company takes care of everything from site selection and training to maintenance and marketing, so you can focus on what you’re best at: running your store.
Our franchisees enjoy a long list of benefits, including:
• Access to an extensive network of vendors who can help you get the supplies you need and get them fast
• Assistance with equipment purchases, real estate, and construction
• Expert training to help you understand how to run your store effectively
• Marketing support that will help increase awareness of your business in the local community
How much money can I make by opening a Starbucks franchise?
The short answer is: it depends. A lot of factors go into determining how much money you’ll make as a franchisee, including: whether or not your area is densely populated; whether or not there’s other coffee shops nearby that might compete with you; what kind of location you choose (some are more expensive than others); which size store you choose (smaller stores require less investment but also have lower margins); and how many staff members you hire (more employees mean more payroll expenses).
In general, though, if you choose the right location and size store (and hire enough staff), then yes—you could expect to see profits around $3-4 million per year from just one location.
What is the total investment required to open a Starbucks franchise?
The total investment required to open a Starbucks franchise ranges from $1.2 million to $1.6 million, including the initial franchise fee of $25,000.
The total investment includes the cost of construction, equipment and furnishings, inventory, store signage and interior design, utilities, legal fees, occupancy costs (rent), insurance premiums, marketing and advertising costs and travel expenses incurred prior to opening day.
How much profit can i get from the Starbucks franchise?
Starbucks is known for its coffee, but the company also offers an incredible franchise opportunity. If you’re interested in becoming a Starbucks franchisee, it’s important to know how much profit you can expect from your investment.
First, let’s look at how much money Starbucks makes overall. In 2018, the company had revenues of over $24 billion, with $3.9 billion coming from their international business. This means that Starbucks earned nearly $1 billion in profit last year.
Now let’s look at how much profit individual stores make on average: according to an analysis by QSR Magazine, Starbucks stores average about $1 million in sales each year—and that doesn’t include any additional revenue from food sales or other merchandise! That means that each store has a gross profit margin of about 20% which would translate into about $200K if we assume a typical franchise fee of 8%.
FAQ’s
The cost of a Starbucks franchise varies based on location and size. Some stores can cost as much as $1 million to open, while others may only need $100,000. The average price for an existing store is around $300,000.
Starbucks has seen consistent growth over the past few decades, so this makes them a good investment option for anyone looking to start a business with low risk and high reward potential. In order to give yourself the best chance at success, we recommend talking with other franchisees before making any decisions about what kind of location would work best for you.
The initial investment for a Starbucks franchise ranges from $1.4 million to $2 million, depending on the location of your store. This includes all equipment, leasehold improvements, and other expenses associated with opening your store.
No! You won’t have to pay any fees up front. However, there are fees associated with obtaining approval from Starbucks’ headquarters and ongoing fees that you’ll need to pay once you begin operating your store.
You must have an existing business or experience in the food service industry in order to apply to open a Starbucks franchise. You must also have liquid assets of at least $100,000 and be able to show that you can afford the initial investment.
Yes! It’s easy to get financing for your new business with our financing partner, SBFCU Financial Services, who provides loans with low interest rates and flexible terms for qualifying applicants who meet certain criteria (including being over 18 years old).
