PJ's Coffee Franchise
Cost, fees, owner earnings, closure rate and litigation for a PJ's Coffee franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
PJ's Coffee discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 data for 122 franchised units showing average gross sales $603,785; median $557,620. Seven affiliate-owned units detailed with EBITDA average $140,935. Average gross sales by category provided.
What a PJ's Coffee franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 7% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $280,500 – $1,680,000 | Item 7 — franchisor's own low/high estimate |
Royalty 5%, Marketing 2%, optional coop 1-3%, $141/mo POS, various tech fees, $15K transfer fee
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
PJ's Coffee system size and owner turnover
| Total outlets | 167 |
| Ceased operations | 18 |
| Terminated by franchisor | 18 |
| Transferred to new owners | 8 |
| Closure rate | 10.8% of outlets |
2025: 18 ceased operations, 18 terminations; Alabama lost 2 units
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is PJ's Coffee worth it? — how it compares to 32 similar franchises
| Ongoing fees | 7% of sales | lower than most (median 8%) |
| Startup cost | from $280,500 | cheaper than most (median $350,000) |
| Disclosure honesty | Grade B | more honest than 88% of coffee & donuts franchises |
| Closure rate | 10.8% of outlets | worse than 79% of peers |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a PJ's Coffee
The franchisor's framing: 2025 data for 122 franchised units showing average gross sales $603,785; median $557,620. … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
PJ's Coffee franchise — frequently asked
- How much does a PJ's Coffee franchise cost?
- The FDD lists a total initial investment of about $280,500–$1,680,000, including a $40,000 initial franchise fee.
- How much do PJ's Coffee franchise owners make?
- 2025 data for 122 franchised units showing average gross sales $603,785; median $557,620. Seven affiliate-owned units detailed with EBITDA average $140,935. Average gross sales by category provided. We grade this disclosure B for honesty.
- What are the PJ's Coffee franchise fees?
- PJ's Coffee's FDD discloses a $40,000 initial franchise fee, a 5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 7% of gross sales in recurring fees before rent, labor, or debt service. Royalty 5%, Marketing 2%, optional coop 1-3%, $141/mo POS, various tech fees, $15K transfer fee
- What is the PJ's Coffee franchise profit margin?
- PJ's Coffee does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 data for 122 franchised units showing average gross sales $603,785; median $557,620. Seven affiliate-owned units detailed with EBITDA average $140,935. Average gross sales by category provided. Recurring fees alone take about 7% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the PJ's Coffee franchise failure rate?
- 2025: 18 ceased operations, 18 terminations; Alabama lost 2 units
- How many PJ's Coffee locations are there?
- PJ's Coffee's FDD reports 167 total outlets, with 18 that ceased operations in the most recent reporting year and 8 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does PJ's Coffee have complaints or lawsuits?
- PJ's Coffee discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a PJ's Coffee franchise worth it?
- It depends on the numbers, not the pitch. PJ's Coffee scores B on disclosure honesty, carries about 7% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare PJ's Coffee to similar franchises
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Source: MN CARDS 35972-202604-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with PJ's Coffee or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.