PJ'S COFFEE OF NEW ORLEANS
PJ’s Coffee of New Orleans franchises retail units that sell gourmet coffees and teas, blended coffee and tea beverages, whole bean and ground coffee, gourmet desserts, sandwiches, salads, and other authorized food products and beverages. The franchisor offers Traditional Inline/End cap, Free-standing, and Non-traditional models, supported by a proprietary system including training, operations manuals, recipes, and ongoing assistance. Their business model focuses on franchising these quick-service locations to target the general public seeking high-quality, reasonably priced coffee and food in diverse settings like strip malls, standalone buildings, airports, and campuses.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty + 2% ad fund + $370/mo technology fees
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: 117 franchised PJ's Units open for a full 12 months or greater and reported net sales for the entire one-year period ending December 31, 2024.
* Average Gross Revenue and Median Gross Revenue are based on the 'Average Net Sales' and 'Median Net Sales' for all 117 franchised PJ's Units for the calendar year 2024, as presented in the 'Average Net Sales by Year - All PJ's Units' table on page 6. Net Sales is defined as Gross Sales minus Discounts. Revenue Top Quartile is the weighted average of the 'Average Net Sales' for the 'Top 25%' categories across Traditional Drive-thru, Traditional No Drive-thru, and Non-traditional No Drive-thru units for 2024. Calculated as: (20 units * $1,008,567 + 7 units * $749,207 + 3 units * $935,044) / (20 + 7 + 3) = $940,697.37. Revenue Bottom Quartile is the weighted average of the 'Average Net Sales' for the 'Bot 25%' categories across Traditional Drive-thru, Traditional No Drive-thru, and Non-traditional No Drive-thru units for 2024. Calculated as: (20 units * $331,366 + 7 units * $292,530 + 3 units * $202,286) / (20 + 7 + 3) = $309,396.27. Average Net Income, Average Net Profit, Average EBITDA, and EBITDA Margin PCT are null as specific figures for these metrics were not provided for the 117 franchised units. Data for 7 affiliate-owned units was not used per instructions. Best Guess Profit Low and High are estimated based on: - Average Net Sales: $589,674. - Estimated Average Gross Sales (GS) from Average Net Sales (NS) and Average Discount (4.4% of GS for 117 units, Note 2, page 3): GS = NS / (1 - 0.044) = $616,813.81. - Estimated Average Cost of Goods Sold (COGS) (34.0% of GS for franchisees, Note 4, page 3): COGS = 0.34 * GS = $209,716.70. - Estimated Average Gross Profit = NS - COGS = $379,957.30. - Estimated Operating Expenses (excluding COGS) assumed to be 45-50% of Net Sales, based on the percentage observed for the 7 affiliate-owned units (48.2% of Net Sales, calculated from page 2-3). - Best Guess Profit Low = Gross Profit - (50% of Net Sales) = $379,957.30 - (0.50 * $589,674) = $85,120.31. - Best Guess Profit High = Gross Profit - (45% of Net Sales) = $379,957.30 - (0.45 * $589,674) = $114,604.01.
Extracted Item 19 Section
How PJ'S COFFEE OF NEW ORLEANS Compares to Other Fast Food Franchises
Key Insights
- Higher than average SBA loan default rate in Fast Food
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
PJ'S COFFEE OF NEW ORLEANS Current | $263K - $1.7M | $30K | 5.0% | 166 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| MCDONALD'S | $1.5M - $2.6M | $45K | N/A | 12,772 |
| AFC | $45K - $151K | $6K | 9.5% | 3,572 |
| SONIC DRIVE-IN | $1.7M - $3.1M | $15K | 5.0% | 3,441 |
| JIMMY JOHN'S | $366K - $728K | $35K | 6.0% | 2,647 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+3 more states
SBA Loan History
Historical SBA 7(a) loan data for PJ'S COFFEE OF NEW ORLEANS franchisees (2015 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Arbitration claim by former franchisees alleging inaccuracies in FDD costs and revenues, failure to support operations, and improper termination, including claims of fraud, misrepresentation, and breach of contract.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a PJ'S COFFEE OF NEW ORLEANS franchise?
The total initial investment to open a PJ'S COFFEE OF NEW ORLEANS franchise ranges from $262,500 to $1,698,000. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a PJ'S COFFEE OF NEW ORLEANS franchise make?
According to the 2025 FDD, the average gross revenue for a PJ'S COFFEE OF NEW ORLEANS franchise is $589,674. The median revenue is $533,705.
How much profit can you make with a PJ'S COFFEE OF NEW ORLEANS franchise?
Based on the financial performance data in the FDD, estimated profit for a PJ'S COFFEE OF NEW ORLEANS franchise ranges from $85,120.31 to $114,604.01 per year. Actual results vary based on location, management, and market conditions.
How many PJ'S COFFEE OF NEW ORLEANS franchise locations are there?
As of the 2025 FDD, PJ'S COFFEE OF NEW ORLEANS has 166 franchise locations. The company has been franchising since 1989.
Can you get an SBA loan for a PJ'S COFFEE OF NEW ORLEANS franchise?
Yes, SBA loans are available for PJ'S COFFEE OF NEW ORLEANS franchises. Historical data shows 67 SBA 7(a) loans have been approved for PJ'S COFFEE OF NEW ORLEANS franchisees, with an average loan amount of $448,973. The historical default rate is 0.0%.
Is PJ'S COFFEE OF NEW ORLEANS a good franchise to buy?
PJ'S COFFEE OF NEW ORLEANS shows several positive indicators: established brand with 166+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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