The Opportunity From Starbucks - Franchise Or Not?
The worldwide popularity and success of Starbucks coffee products, has led many an entrepreneur in search of a lucrative opportunity. Strangely enough, though, Starbucks do not offer any franchise opportunity. Not locally or internationally.
Selling franchises has never been part of the Starbucks group’s business strategy, and apparently there are currently no plans to change that in the future. There is, however, an opportunity available for business owners in those areas where Starbucks cannot acquire land, or do not plan to expand to. When analyzing the license agreement from Starbucks, “franchise” is not quite the business model it describes. The company licenses the use of its “image”, including the logo, the equipment used, and the interior layout resembling that of an original Starbucks shop.
The Starbucks “franchise” agreement is not for everyone, though. It is aimed at high traffic locations, like hospitals, airports, and grocery stores, to ensure good returns for both parties. A number of factors are taken into consideration, including the background and capabilities of the person filing the application, the location, and the available down payment against the loan taken (as an indication of expected stability).
Although what many people call the Starbucks “franchise”, is not really a franchise, it is till a lucrative, solid business opportunity. If you want to add to your existing business, and offer more value to your existing customers, it might just be a viable option for you. If, however, you are looking for a more “traditional” franchise, you may want to pass up in this, and look further.
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