PJ’s Coffee of New Orleans Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$192,000

-

$1,131,000

LOCATIONS

137

Emily

Updated

April 11, 2024

Is

PJ’s Coffee of New Orleans

a franchise?

Yes,
PJ’s Coffee of New Orleans
currently
accepts
franchise
applications

PJ’s Coffee of New Orleans is a cherished American retail coffeehouse chain, spreading the warmth of its coffee with over 160 stores across the United States. At its heart, it's about delivering premium coffee, freshly baked pastries, delightful breakfast options, tasty snacks, and satisfying lunch items.

The story of PJ’s Coffee of New Orleans began in the charming Carrollton neighborhood of New Orleans in 1978, and its name carries the initials of its founder, Phyllis Jordan. In 1989, the journey to share this coffeehouse's warmth and flavors with even more people began with franchising.

Today, PJ's Coffee is more than just a coffeehouse; it's a culture of coffee lovers. The torchbearer of this legacy, the franchisor, is PJ's Coffee, now a proud subsidiary of Ballard Brands, based in Mandeville, Louisiana.

How many

PJ’s Coffee of New Orleans

franchises

are there?

In 2022, there were
137
outlets in
the United
States, of which
137
are franchises, and
0
are corporate-owned.

What are the

PJ’s Coffee of New Orleans

franchise

fees?

Advertising fee

3.50%

Initial Franchise Fee ($35,000 - $40,000)

  • The initial franchise fee for a PJ’s Coffee of New Orleans franchise ranges from $35,000 to $40,000, depending on the model and location of the franchise.

Royalty (5.0% of net sales)

  • Franchisees are required to pay a royalty fee of 5.0% of their weekly net sales to the franchisor. This payment or withdrawal will be made within five business days of the week’s end.

Marketing Fee (2.0% of net sales)

  • Franchisees must pay a marketing fee equivalent to 2.0% of their net sales every week. This fee is deposited into a segregated system account controlled by the franchisor. The funds are used for advertising and marketing to benefit the franchisee and/or all regional franchisees of PJ’s Units.

Local Advertising ($12,500 for Grand Opening)

  • For the grand opening of the franchisee’s PJ’s Unit, the franchisee must spend a minimum of $12,500 in local advertising, marketing, and brand building. If the PJ’s Unit is located more than 75 miles from an existing PJ’s Unit (termed a "Pioneer Market"), the franchisor will contribute an additional $5,000 to promote the grand opening.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

PJ’s Coffee of New Orleans

franchise?

It costs between
$192,000
and
$1,131,000
to start a
PJ’s Coffee of New Orleans
franchise.

The investment can vary based on the type of unit you're interested in. For those looking into a Traditional Model PJ’s Unit, the estimated initial investment ranges from $406,000 to $1,131,000.

On the other hand, if you're contemplating a Nontraditional Model PJ’s Unit, which is typically suited for locations like airports, shopping malls, and university campuses, the investment is estimated between $192,000 to $543,500.

Below, we've provided a detailed breakdown for a Traditional Model PJ’s Unit model to help you understand where your investment would go.

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

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

PJ’s Coffee of New Orleans

provide

training

to its

franchisees?

Yes,
PJ’s Coffee of New Orleans
provides
training

Considering a franchise opportunity with PJ’s Coffee of New Orleans? Here's a detailed look at their training offerings and associated expenses for franchisees:

Training Program: PJ’s Coffee of New Orleans offers an initial management training program that franchisees must attend and complete. This program is mandatory for up to three individuals, which should include the Designated Principal, and if applicable, the district manager or the general manager.

Training Content: The program covers various aspects essential for running the store, including operations, guest service, product knowledge, management, marketing, facilities, IT, supply chain, and financial aspects.

Duration and Location: The initial management training program lasts between five to eleven days, depending on the size of the class and the rate of material covered. This training consists of hands-on training and classes averaging eight hours per day, plus additional homework assignments. All training sessions are conducted in Greater Metro New Orleans, Louisiana.

Training Expenses: While PJ’s Coffee provides instructors and instructional materials for up to three managers at no extra cost, franchisees are responsible for other expenses related to the training.

Does

PJ’s Coffee of New Orleans

provides

territory

protection?

Franchisees will not receive an exclusive territory. They may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands controlled by the franchisor.

However, generally, the franchisor will not establish another Traditional PJ’s Unit, neither franchisee nor company-owned, within two (2) driving miles of the franchisee's Traditional PJ’s Unit.

This means that while franchisees have a specific location to operate, they do not have a broader exclusive territory. The operations are confined to the designated location, and there is a general guideline that another Traditional PJ’s Unit will not be established within two driving miles of an existing one.

Can a

PJ’s Coffee of New Orleans

franchise

be run as

a passive

investment?

For individuals or entities considering a partnership with PJ’s Coffee of New Orleans, it's essential to be aware of their operational requirements. Franchisees are strongly recommended to be actively involved in the operation of their PJ’s unit.

If a franchisee does not intend to manage the unit full-time, they must have a designated manager who devotes full-time to the development of the unit. This manager must have satisfactorily completed the franchisor's initial management training program.

The unit must always be under the direct, full-time, on-location supervision of either the franchisee or a trained and competent employee acting as a full-time manager.

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