PJs Coffee
PJ's Coffee of New Orleans offers gourmet coffee, teas, and food in a retail setting. Known for its New Orleans-inspired atmosphere, this franchise provides a variety of beverages and treats. Operating in the specialty coffee shop industry.
About PJs Coffee
PJ's Coffee of New Orleans is an American chain of retail coffeehouses. PJ's was founded with a single shop in the Carrollton neighborhood of New Orleans in September 1978 by Phyllis Jordan. It was formerly billed as "PJ's Coffee & Tea Co.". PJ's spread throughout the Greater New Orleans Area with company-owned outlets. Its first franchise, in Mandeville, Louisiana, in 1989, was successively followed by franchises in Hammond, Louisiana, and Picayune, Mississippi. PJ's then expanded across the Southeast and to other parts of the United States including California.
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PJs Coffee franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to begin operation of a Traditional Freestanding Model PJ's Unit ranges from $915,000 to $1,698,000. For Non-traditional Model PJ's Units, the range is from $262,500 to $556,000. Additionally, there are further investments in franchise fees ranging from $15,000 to $40,000 for Traditional Freestanding Models and $15,000 to $30,000 for Non-traditional Models [p.1].
What is the initial franchise fee?
The initial franchise fee can range from $15,000 to $40,000 depending on the type of model chosen and whether a Multi-Unit Ownership Agreement (MUOA) is entered into. If you enter into an MUOA, the initial franchise fee for the first unit is $40,000, with option fees of $15,000 per additional unit. This fee is fully earned and not refundable [p.13].
What are the ongoing royalty and advertising fees?
The ongoing royalty fees from franchisees are based on a percentage of their revenues and are recognized in the period related franchisee sales occur. This information is consistent across multiple pages [p.149, p.168, p.187]. The excerpts do not provide specific details about advertising fees, so this isn't specified in the excerpts.
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but the franchisor has the right to refuse such transfers for good cause [p.253]. Good cause includes factors like management's discretion [p.253]. Additionally, there may be a transfer fee involved when transferring your franchise [p.165, p.184].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.263]. Additionally, the franchisor has the right to terminate the franchise agreement if the franchisee fails to comply with lawful provisions of the franchise agreement and does not cure such failure within a reasonable time frame [p.253(c)].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD excerpts discuss cash equivalents, affiliate payments, and initial operating funds but do not detail the net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory according to the FDD. You may face competition from other franchisees and outlets owned by the company within your area [p.239, p.34]. However, the franchisor generally will not establish another Traditional PJ's Unit within two driving miles of your location [p.34].
What training and ongoing support does the franchisor provide?
The franchisor provides initial on-site training for up to five to ten days when a new franchisee opens their PJ's Unit, covering various aspects such as food preparation, personnel hiring and training, purchasing, inventory management, product promotion, bookkeeping, sales analysis, and more [p.33]. Additionally, the franchisor offers optional management and field training programs, with no more than two mandatory sessions per year not extending beyond five days each [p.34].
How many franchised outlets are there, and how many have closed or been terminated?
As of January 1, 2025, there were a total of 178 PJ's Units in the United States, with one unit each in Vietnam and Kuwait. Seven domestic units closed in 2024, and thirty-seven did not operate for a full 12 months in 2024. Additionally, seventeen units were operating under Special Contracts [p.47].
Does the franchisor share any financial performance or earnings information?
The franchisor, New Orleans Brew, LLC, does not make any financial performance representations other than providing actual records of an existing outlet if a prospective franchisee purchases one. [p.51] If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management and relevant regulatory agencies. [p.51]
What am I restricted to selling, and where must I buy supplies?
You are required to offer all products and services designated by the franchisor for PJ's Units, including any new products or services developed in the future. You cannot sell any other products or services without prior written consent from the franchisor [p.38]. Additionally, you must purchase services, products, and supplies that meet certain specifications as set by the franchisor, which may include quality, quantity, delivery, performance, design, appearance, durability, style, and more [p.22]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which could be more expensive than other options [p.4].