PJ’s Coffee of New Orleans Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$192,000 - $1,131,000
Royalty fee
5.00%

PJ's Coffee: Cultivating a Legacy of Coffee Excellence and Southern Charm

PJ’s Coffee of New Orleans is a beloved American coffeehouse chain, known for its inviting atmosphere and exceptional coffee. It offers a delightful array of freshly baked pastries, breakfast items, tasty snacks, and hearty lunch options.

The origins of PJ’s Coffee trace back to the charming Carrollton neighborhood in New Orleans, where it was founded in 1978 by Phyllis Jordan, whose initials the brand proudly carries. The journey to expand this coffeehouse's unique charm began with franchising in 1989.

Today, PJ's Coffee stands as a beacon for coffee enthusiasts, fostering a vibrant coffee culture. Each store is designed to reflect the rich heritage and lively spirit of New Orleans, offering a cozy ambiance that makes customers feel at home. The brand's commitment to quality is evident in its use of 100% Arabica beans, carefully selected and roasted to perfection.

The legacy of PJ’s Coffee is upheld by its franchisor, PJ's Coffee, now a distinguished subsidiary of Ballard Brands, headquartered in Mandeville, Louisiana. The brand continues to grow, sharing its passion for coffee and community with every cup served.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount for Traditional Model Amount for Nontraditional Model
Initial Franchise Fee $10,000 to $35,000 $10,000 to $25,000
Real Estate Lease Deposit for Premises $2,500 to $12,500 $2,000 to $7,500
Furniture, Fixtures, and Equipment $130,000 to $215,000 $50,000 to $215,000
Opening Advertising $12,500 $12,500
Travel and Living Expenses While Training $3,500 to $5,000 $3,500 to $5,000
Insurance $2,500 to $5,000 $2,500 to $5,000
Other Prepaid Expenses, Such as Deposits, Licenses and Various Permits $2,000 to $6,500 $2,000 to $4,500
Opening Inventory $10,000 to $14,000 $10,000 to $14,000
Signage $7,000 to $18,000 $4,000 to $7,000
Free Standing Building or Leasehold Improvements (Not Including the Purchase of Land) $175,000 to $725,000 $50,000 to $175,000
Small Wares $9,000 to $12,000 $9,000 to $12,000
POS System & Backoffice Computer System $2,500 to $5,500 $2,500 to $5,500
Legal, Accounting & Organizational Costs $2,500 to $5,000 $2,500 to $5,000
Construction Drawings $7,000 to $30,000 $1,500 to $11,500
Additional Funds (3 months) $30,000 $30,000
Total $406,000 to $1,131,000 $192,000 to $543,500

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Number of units

2023
Franchised units

116

116

137

Company-owned units

0

0

0

Total units

116

116

137

Franchise Disclosure Document

Training 

PJ’s Coffee of New Orleans mandates an initial management training program for new franchisees. This program is essential for up to three individuals, including the Designated Principal, and if applicable, the district manager or general manager.

Training Content

The program encompasses all crucial elements for operating the store, including operations, customer service, product knowledge, management, marketing, facilities, IT, supply chain, and financial management.

Duration and Location

The initial management training program spans five to eleven days, contingent on class size and material coverage rate. The training includes hands-on experience and classes, averaging eight hours daily, along with additional homework assignments. All sessions are held in Greater Metro New Orleans, Louisiana.

Training Expenses

PJ’s Coffee covers the cost of instructors and instructional materials for up to three managers. However, franchisees are responsible for all other expenses related to attending the training.

Territory Protection

Franchisees with PJ’s Coffee of New Orleans do not receive an exclusive territory. They may encounter competition from other franchisees, outlets owned by the franchisor, or other distribution channels or competitive brands under the franchisor's control.

However, the franchisor typically avoids establishing another Traditional PJ’s Unit, whether franchisee-owned or company-owned, within a two (2) driving mile radius of the franchisee's Traditional PJ’s Unit.

This arrangement means that while franchisees have a specific location for their operations, they do not enjoy a broader exclusive territory. Their operations are limited to the designated location, with the general guideline that no other Traditional PJ’s Unit will be established within two driving miles of an existing one.

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