About PJ's Coffee of New Orleans Franchise
PJ's Coffee of New Orleans is a specialty coffee franchise where franchisees operate retail locations selling gourmet coffees and teas, blended coffee and tea beverages, whole bean and ground coffee, gourmet desserts, sandwiches, salads, and other food products and beverages.
The franchise serves the general public through both Traditional Model locations (650-2,000 sq ft freestanding or in-line retail spaces, often with drive-thrus) and Non-traditional Model locations (250-1,000 sq ft in airports, malls, hospitals, universities, and other institutional settings).
Each unit typically employs 10 to 16 people.
PJ's Coffee of New Orleans Franchise Cost & Fees
Minimum Investment
$192K
Average Investment
$608K
Maximum Investment
$1.0M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $10,000 - $35,000 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Net Sales (Marketing Fund); 1% - 3% of Net Sales (Cooperative Fee, if applicable) | National brand fund |
| Total Investment Range | $191,875 – $1,024,000 | Includes build-out, inventory, working capital |
The investment range of $192K–$1.0M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (2% of Net Sales (Marketing Fund); 1% - 3% of Net Sales (Cooperative Fee, if applicable)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $35,000 |
| Real Estate Lease for Premises | $2,500 | $12,500 |
| Furniture, Fixtures, and Equipment | $130,000 | $165,000 |
| Opening Advertising | $10,000 | $10,000 |
| Training Expenses | $0 | $0 |
| Travel and Living Expenses While Training | $3,500 | $5,000 |
| Insurance | $5,000 | $9,500 |
| Other Prepaid Expenses (deposits, licenses, permits) | $2,000 | $6,500 |
| Opening Inventory | $10,000 | $14,000 |
| Signage | $7,000 | $18,000 |
| Leasehold Improvements | $175,000 | $675,000 |
| Small Wares | $9,000 | $12,000 |
| POS System & Back-office Computer System | $2,500 | $5,500 |
| Legal, Accounting & Organizational Costs | $2,500 | $5,000 |
| Additional Funds (3 months) | $30,000 | $30,000 |
| Construction Drawings | $7,000 | $21,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 |
| Renewal Fee | $0 |
| Technology Fee | POS Software/Loyalty/Gift Card: $215/month; Labor Management: $20/month; Mobile App: $50/month; Inventory Management: $99/month; QuickBooks Essentials: $50/month |
| Audit Fee | $2,500 - $8,000 |
| Initial Advertising Fee | $10,000 |
| Refurbishment Costs | $20,000 - $65,000 (after first 5 years) |
| Renovation/Design Construction Plans | $1,500 - $11,500 |
| Returned Checks | $30 per occurrence |
| Charge for Inspection/Testing of Proposed Suppliers | $0 - $1,000 |
| POS System Hardware Costs | $1,000 - $2,500 |
| Liquidated Damages | Average monthly Royalty and Marketing Fees x lesser of months remaining or 36 months |
| Annual Convention | $500 - $5,000 |
| Annual Convention Penalty | $500 |
| Financial Statement Penalty | $100 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 to 11 days initial management training, plus 5 to 10 days field training at opening |
| Classroom Training | 20 - 30 hours (Management Training); 20 - 30 hours (Field Training); 10 - 20 hours (Additional Training) |
| On-the-Job Training | 30 - 50 hours (Management Training); 30 - 50 hours (Field Training); 10 - 20 hours (Additional Training) |
| Training Location | Greater Metro New Orleans, Louisiana (Management Training); Franchisee's PJ's Unit (Field Training); Franchisee's State or Greater Metro New Orleans (Additional Training) |
| Additional Training | Franchisor may mandate up to 2 additional training sessions per 12-month period, not exceeding 5 days each. Optional advanced and refresher training programs are also available. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Generally will not establish another Traditional PJ's Unit within 2 driving miles of your Traditional PJ's Unit |
| Description | No exclusive territory granted. Franchisor designates a General Area solely to limit the area for site selection. Franchisor retains the right to own, establish, operate, or license others to operate businesses using the Proprietary Marks at any location other than the Franchisee's PJ's Unit. Franchisor may sell or distribute products bearing proprietary marks through any channel. Franchisee may not sell through the Internet or catalogs without prior approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from date the PJ's Unit opens |
| Renewal Term | Three additional terms of 10 years each |
| Renewal Fee | $0 |
| Renewal Conditions | Good compliance record with Manuals; in compliance with Franchise Agreement; all monetary obligations satisfied; written notice 6-24 months before end of term; remodel PJ's Unit; attend training; sign release; sign then-current Franchise Agreement (royalty fees remain the same) |
| Transfer Fee | $15,000 |
| Transfer Conditions | Franchisor right of first refusal within 15 days; Franchisee not in default; all monetary obligations paid; general release signed; transferee meets current franchisee requirements; transferee completes training; transferee executes required documents including new Franchise Agreement |
| Termination for Cause | Non-curable defaults: false books/records, imminent danger to public health, selling unauthorized products after notice, felony conviction, intentional disclosure of trade secrets, repeated defaults (3+ in 12 months or 6+ in 24 months), abandonment. Curable defaults: failure to pay, failure to maintain standards, failure to obtain approvals, misuse of marks, lease default, failure to maintain insurance (10 days to cure). |
| Non-Compete Period | 24 months |
| Non-Compete Details | No involvement in similar business (production or sale of coffee beans, coffee products, specialty coffee beverages, mixes, syrups, and coffee house-type food products) at a site within 50 miles of any former PJ's Unit or within 20 miles of any other PJ's Unit or Distribution Point. During the term, no involvement in similar business anywhere. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Franchisee does not have to personally participate in direct operation, but Franchisor strongly recommends active involvement. Franchisee or designated manager must devote full-time to development. The PJ's Unit must at all times be under direct, full-time, on-location supervision of Franchisee or a trained manager who has completed the initial management training program. |
| Required Suppliers | New Orleans Roast, L.L.C. (affiliate) is the designated supplier for proprietary coffee beans, beverages, mixes, syrups, and food products. Franchisees must purchase all equipment, inventory, supplies, products, and materials from approved suppliers except general office supplies. |
| Supply Restrictions | All equipment, inventory, supplies, and products must be purchased from approved/designated suppliers per the Manuals. Purchasing from unapproved suppliers is a default of the Franchise Agreement. Supplier approval process takes up to 90 days and proposed suppliers must pay Franchisor's inspection costs. |
| Franchisor Revenue from Suppliers | $41,099 (0.9% of Franchisor's total revenue of $4,348,261) from supplier rebates on purchases of coffee beans, teas, coffee products, syrups, paper products, and other products. New Orleans Roast, LLC realized gross sales of approximately $4.5 million from franchisee purchases in 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee any franchisee obligations. Franchisor provides a business plan template and proforma template and may suggest financial institutions including Franchise Capital Solutions, Business Finance Depot, Guidant Financial, and FranFund, Inc. |
PJ's Coffee of New Orleans Franchise Earnings — Item 19
Average Revenue
$454K
Median Revenue
$441K
Revenue Range
$15K – $1.1M
Sample Size
97 units
Past financial performance does not guarantee future results. Individual results will vary.
PJ's Coffee of New Orleans Litigation & Risk Flags
Clean Litigation RecordPJ's Coffee of New Orleans has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
PJ's Coffee of New Orleans System Growth
Total Units
132
Franchised
121
Company-Owned
11
PJ's Coffee of New Orleans currently operates 121 franchised locations and 11 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 12 | 4 | 99 |
| 2020 | 19 | 4 | 114 |
| 2021 | 20 | 3 | 131 |
Transfers: 4 | Closures: 3
State Registrations
Registered in 9 states: CA, IL, IN, MD, MI, MN, NY, VA, WI
Franchisor Financials (Item 21)
Revenue
$4.3M
Net Income
$476K
Total Assets
$4.0M
Audited by Reagan & Reagan CPA, LLC for year ending December 26, 2021.
PJ's Coffee of New Orleans Franchise — FAQ
The total investment to open a PJ's Coffee of New Orleans franchise ranges from $191,875 to $1,024,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $10,000 - $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
PJ's Coffee of New Orleans charges a royalty fee of 5% of Net Sales of gross sales, plus a 2% of Net Sales (Marketing Fund); 1% - 3% of Net Sales (Cooperative Fee, if applicable) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the PJ's Coffee of New Orleans Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from PJ's Coffee of New Orleans to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, PJ's Coffee of New Orleans franchise owners report average revenue of $454K and median revenue of $441K. This is based on a sample of 97 units. Past performance does not guarantee future results.
PJ's Coffee of New Orleans has been franchising since 1989. The FDD shows an investment range of $191,875-$1,024,000, a 5% of Net Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $10,000 - $35,000 and the total investment ranges from $191,875 to $1,024,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from PJ's Coffee of New Orleans and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with PJ's Coffee of New Orleans or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com