PJ's Coffee of New Orleans Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$262,500 - $1,698,000
Franchise Fee
$15,000
Total US Locations
182
Business Summary
PJ's Coffee of New Orleans operates retail businesses that feature gourmet coffees and teas, blended coffee and tea beverages, whole bean and ground coffee, gourmet desserts, sandwiches, salads, and other food products and beverages authorized by the franchisor. PJ's Coffee of New Orleans offers three types of units: Traditional Inline/End Cap, Traditional Free-standing, and Non-traditional models, all constructed to their specifications.
Corporate History
The PJ's Coffee of New Orleans brand began offering franchises in 1989 through PJ's USA, Inc. In June 2008, New Orleans Brew, L.L.C., the current franchisor, was organized and acquired substantially all the assets of the PJ's franchise system and coffee roasting business from PJ's USA, Inc. New Orleans Brew, LLC officially began offering unit franchises in July 2008. As of April 2025, the franchisor itself does not own or operate any PJ's Coffee locations, but an affiliate owns and operates 13 units. The company also has an affiliate that offers WOW American Eats franchises.
Financial Overview
Investment Range
$262,500 - $1,698,000
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$182,000
Equipment Costs (High)
$1,563,500
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question PJ's Coffee of New Orleans's financial ability to provide services and support to franchisees. PJ's Coffee of New Orleans has negative Members' Equity, reporting $(1,081,052) in 2024 and $(654,204) in 2023. Total Liabilities for PJ's Coffee of New Orleans were $5,359,055 in 2024, exceeding its Total Assets of $4,278,003 in the same year.
Financing Details
PJ's Coffee of New Orleans does not offer any direct or indirect financing options to its franchisees. Additionally, the franchisor does not guarantee any franchisee's notes, leases, or other obligations. Franchisees are responsible for securing their own funding through external sources.
Performance Metrics
Total US Locations
182
Franchised Units
169
Corporate Units
13
Avg Square Footage
1,495
Franchising Since
1989
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
PJ's Coffee of New Orleans is currently involved in two litigation cases. One case, filed in December 2023, is an arbitration proceeding where former franchisees allege that PJ's Coffee of New Orleans misrepresented startup costs and anticipated revenue, failed to support their operations, and improperly terminated their franchise agreements. They are seeking rescission and monetary damages. PJ's Coffee of New Orleans denies these allegations and states the termination was proper, with a final arbitration hearing scheduled for April 2025. The second case, filed in March 2025, involves a plaintiff who alleges discovering mold and foreign objects in food purchased from a PJ's Coffee location at the New Orleans International Airport. While this is a franchised location, PJ's Coffee of New Orleans is not a named defendant; an affiliated entity, Ballard Brands, is. Ballard Brands denies any responsibility for the alleged incident.
Bankruptcy History
PJ's Coffee of New Orleans has no bankruptcy history that is required to be disclosed in this item.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, PJ's Coffee of New Orleans franchisees must have a good record of compliance with the operations manuals and the franchise agreement. They need to satisfy all financial obligations to the franchisor, provide written notice of their intent to renew, remodel their PJ's Coffee unit to current standards, attend any required training, sign a general release of claims, and execute a new franchise agreement. The new agreement may have different terms and conditions from the original, except for royalty fees which will remain the same.
Training & Support Program
Franchisor Assistance
PJ's Coffee of New Orleans provides various forms of assistance to its franchisees. Before opening, PJ's Coffee of New Orleans helps with site identification, evaluation, and approval, reviews lease agreements, provides specifications for location design, equipment, decor, and signs, reviews final site and construction plans, loans operations manuals, and provides initial training for personnel. After opening, PJ's Coffee of New Orleans offers on-site assistance for 5 to 10 days, provides marketing and advertising guidance, offers general operational guidance on a periodic or as-needed basis, and conducts inspections to ensure compliance. Additional training programs are also available. Franchisees must participate in PJ's Coffee of New Orleans's programs for gift cards, customer loyalty, labor management, inventory management, mobile application platforms, financial management, and a career plug employment application program. PJ's Coffee of New Orleans also provides and requires franchisees to use a specific Point of Sale (POS) system.
Initial Training Hours
80
Training Location
Mandeville, Louisiana
Ongoing Support
After opening, PJ's Coffee of New Orleans provides ongoing support that includes on-site assistance (typically 5 to 10 days) upon the unit's launch, and continuous marketing and advertising guidance. Franchisees can contact PJ's Coffee of New Orleans's representatives for operational guidance periodically or as needed. The franchisor also provides information on system changes, conducts inspections of supplies and operations, and offers additional training sessions, which may be mandatory up to two times in a 12-month period, not exceeding five days each. Franchisees must participate in PJ's Coffee of New Orleans's gift card, customer loyalty, labor management, inventory management, mobile application, financial management, and career plug employment application programs, and must maintain and upgrade their POS system as required.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
Limited
Staff Count
13
Territory Size Requirements
PJ's Coffee of New Orleans generally agrees not to establish another Traditional PJ's Coffee unit, whether franchised or company-owned, within two driving miles of an existing Traditional PJ's Coffee unit. The franchisor also designates a general geographic area, such as a city or sector of a city, to limit the area within which a franchisee may seek a site location for their PJ's Coffee unit.
Staffing Notes
PJ's Coffee units typically employ between 10 and 16 people, regardless of whether it's a Traditional Inline/End Cap, Traditional Free-standing, or Non-traditional model. PJ's Coffee requires that the franchisee or a designated manager complete the initial training program in Mandeville, Louisiana, before the unit opens. The designated manager must provide direct, full-time, on-location supervision of the PJ's Coffee unit and must also satisfactorily complete the initial training program. This manager is not required to have an equity interest in the business. While the franchisee is not required to provide on-premises supervision or personally participate in daily operations, PJ's Coffee strongly recommends active involvement in the unit's operation and development.