Start a PJ's Coffee of New Orleans Franchise in 2024

2024 Franchise 500 Rank: #135 Ranked #175 last year

Initial investment: $459K - $1.2M

Units as of 2024: 180 47.5% over 3 years

Founded in 1978 by industry innovator Phyllis Jordan, PJ’s Coffee of New Orleans is a national coffee shop franchise known for roasting only the top 1% of Arabica beans. The business tha began franchising in 1989 is particularly popular for its cold brew iced coffee, brewed using a specially developed process known as cold drip, which reduces the coffee’s acidity and preserves its strength and flavor.

Aside from their famous coffee, every PJ’s Coffee franchise is also a market favorite for its organic tea and fresh breakfast pastries to go. On top of being a successful national coffee chain, PJ’s Coffee is known for being part of the culture of the communities they serve, being a place where people share a special bond and connect over a shared passion—coffee.

Why You May Want to Start a PJ's Coffee Franchise

Coffee is one of the world’s most traded commodities and provides most of America’s caffeine demand. The industry is a huge, multi-billion dollar business. Many Americans drink not just one, but multiple cups of coffee per day, making coffee a massive demand for the U.S.

Indeed, there is no better investment formula than a thriving industry and a successful brand. But what makes the PJ’s Coffee franchise system even more successful is the company's support to franchisees. From site evaluation and lease procurement to training and education to marketing and promotions and more, PJ’s franchisees get all the help and resources they need to carry on the brand’s winning tradition.

What Might Make PJ's Coffee a Good Choice?

PJ’s Coffee has ranked in Entrepreneur’s Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.

Additionally, PJ’s has ranked in Entrepreneur’s Top Franchises for Veterans multiple times in recent years. The coffee shop offers veterans a large discount off the franchise fee required when become a franchisee with the business.

How to Open Your Own PJ's Coffee Franchise

To open a PJ's Coffee franchise, you should make sure you're financially ready with enough liquid capital available for the initial investment, including a franchise fee and other startup expenses.

The franchising process starts with the usual getting-to-know-you phone and video calls. You will be evaluated on your financial suitability in owning a PJ’s Coffee franchise. If you pass this initial phase, you may be given paperwork, including a Franchise Disclosure Document. You are given the opportunity to validate what you find in their Franchise Disclosure Document by contacting existing franchisees. You will also get to meet the team and visit some of the PJ's Coffee locations.

When you decide to begin a PJ's Coffee franchise, you will sign a franchise agreement and pay all the initial fees. You will also meet the team that will prep you up for the training and the rest of the process, all the way to your grand opening. After your shop opens, support and marketing continue to be offered to you in order to give your franchise the best possible chance of success.

Company Overview

About PJ's Coffee of New Orleans

Industry	Food
Related Categories	Coffee, Sandwiches, Breakfast/Brunch Restaurants, Beverages
Founded	1978
Parent Company	Ballard Brands
Leadership	David Mesa, CDO
Corporate Address	4480 LA-22, #2 Mandeville, LA 70471
Social	Facebook, Twitter, LinkedIn, Instagram

Business Overview

Franchising Since	1989 (35 years)
# of employees at HQ	125
Where seeking	This company is offering new franchises worldwide. This company is offering new franchises in the following US states: Alabama, Arkansas, District of Columbia, Florida, Georgia, Iowa, Kentucky, Louisiana, Maryland, Missouri, Mississippi, North Carolina, New Jersey, South Carolina, Tennessee, Texas, Virginia
# of Units	180 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a PJ's Coffee of New Orleans franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$35,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$459,000 - $1,152,000
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$150,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	5%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	PJ's Coffee of New Orleans has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	120 hours
Classroom Training	48 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	12-15
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	No