PJ's Coffee of New Orleans Franchise
Cost, fees, owner earnings, closure rate and litigation for a PJ's Coffee of New Orleans franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
PJ's Coffee of New Orleans discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
What their own earnings claim actually says
7 affiliate-owned locations' 2025 financial data. Average gross sales $967,132; average EBITDA $140,935. 122 franchised units reported: average gross sales $603,785. Wide performance range across models.
What a PJ's Coffee of New Orleans 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%, coop 1-3%, transfer $15,000, liquidated damages via formula.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
PJ's Coffee of New Orleans system size and owner turnover
| Total outlets | 180 |
| Ceased operations | 18 |
| Terminated by franchisor | 18 |
| Transferred to new owners | 8 |
| Closure rate | 10.0% of outlets |
18 ceased operations in 2025; inconsistent regional performance; high early churn suggested.
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 of New Orleans 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 C | typical for the category |
| Closure rate | 10.0% of outlets | worse than 76% 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 of New Orleans
The franchisor's framing: 7 affiliate-owned locations' 2025 financial data. Average gross sales $967,132; average EB… 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 of New Orleans franchise — frequently asked
- How much does a PJ's Coffee of New Orleans 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 of New Orleans franchise owners make?
- 7 affiliate-owned locations' 2025 financial data. Average gross sales $967,132; average EBITDA $140,935. 122 franchised units reported: average gross sales $603,785. Wide performance range across models. We grade this disclosure C for honesty.
- What are the PJ's Coffee of New Orleans franchise fees?
- PJ's Coffee of New Orleans' 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%, coop 1-3%, transfer $15,000, liquidated damages via formula.
- What is the PJ's Coffee of New Orleans franchise profit margin?
- PJ's Coffee of New Orleans does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 7 affiliate-owned locations' 2025 financial data. Average gross sales $967,132; average EBITDA $140,935. 122 franchised units reported: average gross sales $603,785. Wide performance range across models. 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 of New Orleans franchise failure rate?
- 18 ceased operations in 2025; inconsistent regional performance; high early churn suggested.
- How many PJ's Coffee of New Orleans locations are there?
- PJ's Coffee of New Orleans' FDD reports 180 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 of New Orleans have complaints or lawsuits?
- PJ's Coffee of New Orleans 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 of New Orleans franchise worth it?
- It depends on the numbers, not the pitch. PJ's Coffee of New Orleans scores C 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 of New Orleans to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with PJ's Coffee of New Orleans or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.