A Tesla driver's recent TikTok post has sparked an intriguing debate, leaving many curious and confused. The video, titled 'You Oughta Know', showcases an unexpected encounter at a Starbucks station on the California-Nevada border.
Our protagonist, @300k.mile.tesla, found themselves in the small town of Primm, formerly known as State Line, with a need to recharge both their Tesla Model 3 and their energy levels. After successfully charging their vehicle, they decided to grab a coffee, only to be met with a surprising price tag.
"The most expensive coffee at any Starbucks," they captioned the video, revealing they paid a whopping $11 for their beverage. But here's where it gets controversial... The internet community was divided, with some focusing on the high price and others questioning the store's business model.
One user, @carouselambra1, suggested the high price was justified due to the store's remote location, stating, "The next Starbucks is an hour away if you're going north, and a couple of hours if you're heading south." However, the majority of comments centered around the store's status as a "private franchise."
And this is the part most people miss: Starbucks doesn't operate on a traditional franchise model. As user Angela Navarro pointed out, "Starbucks has no franchise. You just let them rob you lol." Robyn (@robynjhunt) added, "It's a licensed store run by Prim Valley resorts, so they can set their pricing."
Intrigued, @300k.mile.tesla decided to investigate further. In a follow-up video, they revealed that their initial understanding of the store as a "private franchise" came from online sources. However, after receiving feedback, they delved deeper and discovered that it's likely a licensed store, meaning it has some autonomy in pricing but must still adhere to Starbucks' rules.
So, what's the difference between a franchise and a licensed store? According to NerdWallet, a franchise agreement covers the entire brand and its operations, while a licensing agreement only applies to registered trademarks. In simpler terms, a franchisee must follow the franchisor's rules but receives more support, while a licensee has greater control over operations.
Franchises are often best suited for service-based businesses, while licenses are more flexible for product-based ventures. Anyone can make Starbucks coffee, but running a Starbucks store is a different ball game altogether.
As @300k.mile.tesla embarks on more cross-country journeys, it's likely they'll encounter similar situations. Here's hoping their future coffee experiences are a little more wallet-friendly!
Motor1 has reached out to Starbucks and @300k.mile.tesla for further clarification, and we'll update this story if we receive a response.
What are your thoughts on this debate? Do you think the store's pricing is justified given its location? Or is it an example of overcharging? Let us know in the comments!
