● HOLD

Starbucks

Coffee & Beverage · Est. 1971 · 16,000 US Locations
✅ SBA Default Rate: 3.9%📊 SBA Default Rate Data Available — Unlock
Ideal Investor: Licensed partner in premium venue (airport, hotel, retail)
70
$315K – $710K
Total Investment
$0
Franchise Fee
See details
Royalty Rate
16,000
US Units
Coffee & Beverage
Category
+1.0%
Growth Rate

What is Starbucks?

Founded in 1971, Starbucks operates 16,000 US units as the world's largest coffee chain with premium positioning and diverse beverage offerings. The company pioneered the 'third place' concept and operates a mix of company-operated and licensed locations.

Visit Starbucks franchise website ↗

Investment & Fee Data

Investment Overview

Franchise Fee$0
Total Investment$315K – $710K
Royalty RateSee FDD
Ad/Marketing Fund0%
Total Fee Burden0.0%

System Size & Growth

US Locations16,000
Unit Growth Rate+1.0%
Founded1971
Franchising Since1995
FDD Item 19Yes ✓

🔒 Premium Data Available

Avg Unit Volume (AUV)$1.6M
Owner Earnings$100K
SBA Default Rate3.9%
5-Year Survival94%
Unlock All Data →
💡 What This Means For You
A combined fee burden of 0.0% is well below the industry average, leaving you more room for profitability. Beyond the listed investment, expect approximately $133K in hidden costs (working capital, legal, insurance, tech fees) — bringing your realistic total closer to $645K.

Financial Performance & Risk Analysis

Financial Performance

Avg Unit Volume (AUV)$1.6M
Net Profit Margin12%
Est. Owner Earnings$100K
Breakeven18-24 months
Payback Period4-6 years

Capital Requirements & Operations

Liquid Capital Required$100K
Net Worth Required$250K
Staff Required12-18
Training4 weeks
TerritoryCo-location or kiosk
Multi-Unit RequiredNo
Term Length5 years

Risk & SBA Safety Data

SBA Default Rate3.9%
5-Year Survival94%
Renewal FeeAnnual licensing
Transfer FeePer agreement
💡 Financial Analysis
The revenue-to-investment ratio of 3.2x is excellent — every dollar invested generates $3.2 in annual revenue, well above the 2x industry benchmark. At estimated owner earnings of $100K/year, the simple payback period is approximately 5.1 years.
🔒

Premium Data

AUV, owner earnings, SBA default rates, breakeven analysis, and operational details for Starbucks.

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Due Diligence Deep Dive

The data franchise brokers don't show you — real costs, owner lifestyle, franchisee satisfaction, exit options, and FDD transparency.

💰 True Cost of Ownership

Working Capital (6 mo)$80K
Legal & Accounting$12K
Insurance (Annual)$10K
Tech/Software (Monthly)$600/mo
Lease Deposit Est.$20K
Grand Opening$10K
Total Hidden Costs$133K

👤 Owner Reality Check

Hours Per Week40-50
Absentee Owner Friendly?Yes ✓
Manager-Run Possible?Yes ✓
Seasonal VariationLow
Labor Cost (% of Revenue)30%
Licensed operator within host venue. 40-50 hours/week typical. Host venue handles foot traffic; operator manages quality/service.

📊 Franchisee Health

Satisfaction Score79/100 (Good)
Annual Turnover Rate4.2%
Litigation Count (Item 3)5 cases
5-Year Closure Rate3%
Avg Franchisee Tenure8 years
Franchisee AssociationNo

🚪 Exit Strategy & Resale

Resale Value Multiple2.0-2.8xx earnings
Transfer RestrictionsFranchisor approval; host venue approval required
Non-Compete Period1 years
Non-Compete RadiusNone (location-specific)
Avg Time to Sell6-12 months
Exit DifficultyModerate

📋 FDD Transparency Report

Item 19 QualityModerate
Item 19 Includes:
✓ Revenue range
✓ Operating cost summary
Territory ProtectionNone
License to specific venue only
Required Suppliers?Yes
Supplier Markup RiskLow
Renewal Terms5-year renewable

🚩 FDD Red Flags & Green Flags

⚠️ Watch Out For:
Host venue dependenceLimited to licensed format
✅ Positive Signals:
Zero royalty$1.65M AUV3.9% SBA defaultGlobal brand
💡 Due Diligence Verdict
Only 5 litigation cases in the FDD is a positive sign of a healthy franchisor-franchisee relationship. This franchise offers no exclusive territory — the franchisor can open additional locations or grant new franchises near you, potentially cannibalizing your revenue.
🔍

Due Diligence Data

Hidden costs, owner hours, franchisee satisfaction, exit strategy, FDD red flags — the data that matters for Starbucks.

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AI Disruption Risk Assessment

🛡️ AI Disruption Risk: Low

32/100
AI-Proof Disruption Timeline: 7+ years High Risk
Strongly protected; brand moat unmatched
AI Threats:
Automated espresso machinesMobile ordering shift
Defensive Moat:
Brand dominance, venue relationships, scale economies
🤖

AI Risk Analysis

See how AI will impact Starbucks over the next 5-10 years — threats, moats, and disruption timeline.

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Territory Saturation Analysis

4.77
Units per 100K pop.
0.55x
Saturation Index
vs. Coffee & Beverage avg (8.72/100K)
50
States with Presence
Moderate
Starbucks has room for growth compared to category peers.

Geographic Distribution

No units
High density

Most Saturated States

State Units Population Per 100K
Wyoming281581,00048.36
Vermont300645,00046.51
Alaska327733,00044.61
Washington DC281671,00041.88
Delaware3511,031,00034.04

Least Saturated States

State Units Population Per 100K
California42739,029,0001.09
Texas38230,503,0001.25
Pennsylvania20112,961,0001.55
New York40918,777,0002.18
Ohio26111,785,0002.21

Growth Opportunity States

High-population states where Starbucks has minimal or no presence — potential expansion territories.

Virginia
🗺️

Premium Territory Intelligence

Interactive density heatmap, saturation metrics, and growth opportunities for Starbucks.

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Investment Thesis

Starbucks carries a HOLD signal with a FutureScore of 70/100. Starbucks licensed model operates only in specific venues (airports, hotels, stores). $1.65M AUV and zero royalty make economics strong. Not traditional franchise; limited availability.

Ideal Investor Profile: Licensed partner in premium venue (airport, hotel, retail)

Strengths

$1.65M AUV with 12% marginsZero royalty/ad fund modelGlobal brand equity16,000+ units providing scaleIdeal for travel/embedded locations

Risk Factors

Licensed format only (no owned Starbucks)Host venue dependence (airports, hotels)Zero royalty but tight cost controlsLimited to approved locations

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