Why are There Only a Handful of Starbucks Franchises in North America?

Business team in a meetingThose who want to buy a Starbucks franchise in North America should find an alternative, even if they could afford the popular coffee shop’s franchising fees.

Some of the alternatives include Dunkin’ Donuts, Scooter’s Coffee, and 7-Eleven. These companies often have authorized brokers to help potential franchisees, so you have better luck with these brands in terms of sales if you want to become a franchise broker.

Alternative Ways

A licensed Starbuck store serves as your option if you really want to be affiliated with the coffee giant. Existing businesses can contact the company about their plans of opening a new location, which would help in expanding brand presence.

As of October 2017, there were 5,708 licensed stores in the U.S. from 13,930 locations nationwide. The company helps aspiring licensees with store design, equipment, training and support, among other things. However, this isn’t the ideal option for first-time business owners. Starbucks has to believe that your location is attractive enough and you must have the necessary resources for opening a new one.

Other Coffee Franchises

A Dunkin’ Donuts franchise will require you to pay at least $40,000 in initial fees. You should generally have $125,000 of liquid cash from a net worth of $250,000. Franchising fees for a 7-Eleven store are more affordable depending on the location, with the minimum cost around $37,550.

However, real estate plays an important role in determining the actual price of a Dunkin’ Donuts or a 7-Eleven franchise. The latter may still be a cheaper option if you find a strategic location in a low-priced property market.

When choosing a coffee shop franchise, take note of fees that you may pay on a recurring basis. In case you’re planning to be a broker, several brokerage firms offer training and support for those who want to be a business advisor.