How Starbucks is run
Starbucks says it isn't accepting applications from franchisees. (Starbucks investor FAQ)
At the end of its 2025 fiscal year Starbucks ran 10,047 company-operated stores in the US, and licensees ran 6,813 more. (Starbucks annual report, fiscal 2025)
A licensee pays the running costs and the cost of building the store. Starbucks earns a margin on the coffee and supplies it sells to the licensee and a royalty on the store's sales. (Starbucks annual report, fiscal 2025)
Outside the US
Outside North America most stores are licensed too, and Starbucks uses traditional franchising in a limited number of international markets. (Starbucks annual report, fiscal 2025)
A licensed store inside your own business
Licensing suits a business that already controls retail space. Starbucks says most of its licensees are prominent retailers with in-depth knowledge of their markets, which give it access to space it often couldn't get on its own. (Starbucks annual report, fiscal 2025)
Franchises like Starbucks
If you want to own a coffee business, these franchise brands sell the closest thing to Starbucks, largest first.
| Brand | Cost to open | Fee | Royalty | Locations | Sales a location |
|---|---|---|---|---|---|
| Dunkin'Fee $40K–$90K · Royalty 5.9% · Sales $1.37M a location | $532K–$1.83M | $40K–$90K | 5.9% | 8,780+662 in 3 yrs | $1.37M |
| Scooter's CoffeeFee $40K · Royalty 6% · Sales $1M a location | $659K–$1.35M | $40K | 6% | 906+351 in 3 yrs | $1M |
| Tim HortonsFee $50K · Royalty 4.5–6% | $428K–$3.31M | $50K | 4.5–6% | 693+57 in 3 yrs | – |
| 7 BrewFee $35K · Royalty 4.5–5.5% · Sales $2.65M a location | $941K–$2.28M | $35K | 4.5–5.5% | 602+562 in 3 yrs | $2.65M |
| Caribou CoffeeFee $30K · Royalty 5% · Sales $685K a location | $898K–$1.51M | $30K | 5% | 494+10 in 3 yrs | $685K |
| Biggby CoffeeFee $20K · Royalty 6% · Sales $662K a location | $276K–$439K | $20K | 6% | 281+50 in 3 yrs | $662K |
| Peet’s CoffeeFee $35K · Royalty 6% | $1.03M–$1.7M | $35K | 6% | 196−7 in 3 yrs | – |
| The Human BeanFee $35K · Royalty None · Sales $814K a location | $672K–$1.53M | $35K | None | 188+43 in 3 yrs | $814K |
| Ziggi’s CoffeeFee $40K · Royalty 6% · Sales $837K a location | $587K–$1.76M | $40K | 6% | 115+50 in 3 yrs | $837K |
Locations are US locations, franchised and company-owned, at the end of the latest year filed. Sales are yearly, before costs, where the brand publishes them.
Dunkin' is the largest, with 8,780 US locations, and Biggby Coffee costs least to open, from $276,000. Dunkin' added the most locations, +662 over 3 years. Of the brands that publish sales, 7 Brew reports the most per location, $2.65M a year. The typical coffee franchise starts at $350K to open; see where the money goes.
Sources
Questions
Which of these coffee franchises loses the fewest owners?
7 Brew. None of its franchised locations closed, were terminated or weren't renewed over the years its latest filing covers, against 6.5% a year at Caribou Coffee. Buy-backs by the franchisor and sales to new owners don't count as exits. Failure rates by brand