One road warrior recently posted a TikTok with a very specific geographic warning about attempting to recharge, both body and vehicle. The spot: the California-Nevada border.
The 300k Mile Tesla (@300k.mile.tesla) recently stopped in the small unincorporated town of Primm (formerly known as State Line) to charge up his Tesla Model 3. While he was there, he decided to grab some “go-juice” for himself.
‘The Next Starbucks Is An Hour Away’
In a video that’s gotten 61,300 views, he tells the internet that after he’d charged his vehicle, he went to grab a coffee and got quite the surprise.
“The most expensive coffee at any Starbucks,” he writes in the caption to the short video.
Then, he reveals he paid $11 for his coffee. He explains that the reason the coffee shop can get away with that high price is that it “is a private franchise.” Next, the internet gets to work. The issue? The phrase: “private franchise.”
But first, Carouselambra1 (@carouselambra1) intimates that the reason the coffee shop can get away with borderline extortionate pricing is that “the next Starbucks … is about an hour away if you are going north and a couple hours if you are going south.”
However, in a move that reflects the contrariness of online commenters, fewer users are as appalled at the over-ten-dollar coffee as are affronted by The 300k’s lack of understanding of the Starbucks-specific business model.
“Starbucks has no franchise. You just let them rob you lol,” says Angela Navarro with just a little bit of schadenfreude in her tone.
While Robyn (@robynjhunt) gives a little more context: “It’s a licensed store run by Prim Valley resorts they can set their pricing,” she explains.
Does Starbucks Offer Franchises?
So, The 300k Mile Tesla decides to do a little digging of his own. In a subsequent video, he reveals that his description of the store as a “private franchise” came from information he’d found online.
Since he’d gotten such pointed feedback, though, he’d done a little more looking. He says that a Reddit thread explained that “it’s most likely a licensed store.” That means, though the location can set its own prices, it still has “to abide by Starbucks’ rules.” With no other Starbucks within an hour’s drive, the location has easily got the market cornered.
What Is The Difference Between A Franchise And A Licensed Store?
While both business agreements operate under an established brand identity and corresponding rules, they serve different functions. NerdWallet explains, “A franchising agreement pertains to a business’s entire brand and operations, while a licensing agreement only applies to registered trademarks.”
Roughly, that means that a licensee will have greater control over how the business is run, while a franchisee has to adhere to the franchisor’s rules. But typically, the franchisee will also receive greater support (training and guidance) than someone who’s just purchased a license.
Often, the site notes, franchises work best for service-based businesses, while licenses are more conducive to product-based businesses. Anyone can make Starbucks coffee; you just need the coffee. But not everyone can run a Starbucks. Consider it the difference between making a product and putting a label on it (a la Basquiat imagery on Gap sweaters) versus opening, say, a Burger King and making sure it conforms to the company’s red-and-brown vibe.
On The Road Again
Considering The 300k Mile Tesla is into planning cross-country journeys, the chances are, this won’t be the only time he’s held up for a ransom-like price on something small. So, here’s hoping the rest of his coffees are always under $10.
Motor1 reached out to Starbucks via its press email and to The 300k Mile Tesla via TikTok direct message and a comment. We will update this story if either replies.
We want your opinion!
What would you like to see on Motor1.com?
– The Motor1.com Team
