About Starbucks Franchise
Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 84 markets.
Franchisees (licensees) operate retail stores selling handcrafted coffee, tea and other beverages, along with a variety of high-quality food items.
The company purchases and roasts high-quality arabica coffees and sells products through company-operated stores and licensed stores, as well as through grocery and foodservice channels via a Global Coffee Alliance with Nestlé S.A.
Starbucks Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | N/A | One-time payment upon signing |
| Royalty Fee | Percentage of reported sales (not specified) of gross sales | Ongoing; paid monthly |
Contact Starbucks directly for current investment range details. The ongoing royalty fee is Percentage of reported sales (not specified) of gross sales.
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Not specified in 10-K; licensee employees attend training classes similar to company-operated store employees |
| Additional Training | Pour Over sessions with thought leaders; To Be Welcoming courses created in partnership with Arizona State University |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Not disclosed in 10-K |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Required Suppliers | Starbucks controls substantially all coffee purchasing, roasting and packaging. Licensees purchase coffee, tea, food and related products from Starbucks for resale. Certain equipment such as coffee brewers and espresso machines are also sold to licensees. |
| Supply Restrictions | Licensees are required to purchase branded products and supplies from Starbucks. |
| Franchisor Revenue from Suppliers | Licensed store revenues of $2,683.6 million in fiscal 2021, consisting of product and equipment sales to licensees and royalties on retail sales. |
Starbucks Franchise Earnings — Item 19
Starbucks does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Starbucks Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Starbucks System Growth
Starbucks currently operates 16700 franchised locations and 17133 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 2239 | 1066 | 32660 |
| 2020 | 1458 | 1060 | 32660 |
| 2021 | 2239 | 1066 | 33833 |
Transfers: 25 | Closures: 300
Franchisor Financials (Item 21)
Audited by Deloitte & Touche LLP for year ending October 3, 2021.
Starbucks Franchise — FAQ
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