BAB, Inc. franchises and licenses bagel and muffin retail units, and frozen yogurt retail units under the BAB, MFM, and SD trade names. As of November 30, 2013, the company had 97 franchise units and 5 licensed units in operation in 25 states. The company also sells its trademark bagels, muffins, and coffee through nontraditional channels of distribution, including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, and Sodexo, as well as through direct home delivery of specialty muffin gift baskets and coffee. The BAB franchised brand consists of units operating as ‘Big Apple Bagels’, featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products. Licensed BAB units serve the company's par-baked frozen bagel and related products baked daily. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as ‘My Favorite Muffin’, featuring various freshly baked muffins, coffees, and related products; and units operating as ‘My Favorite Muffin and Bagel Cafe’, featuring these products, as well as various specialty bagel sandwiches and related products. The SweetDuet Frozen Yogurt & Gourmet Muffins brand is a fusion concept, pairing self-serve frozen yogurt with MFM’s line of My Favorite Muffin gourmet muffins, expanding the shop’s offering and therefore differentiating itself from various frozen yogurt outlets already populating the market. Store Operations BIG APPLE BAGELS: BAB franchised stores daily bake various fresh bagels and offer approximately 11 varieties of cream cheese spreads. Stores also offer various breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees, and other beverages. A BAB store is in an area with a mix of both residential and commercial properties and ranges from 1,500 to 2,000 square feet. The company's store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons, and includes approximately 750 square feet devoted to production and baking. A satellite store is smaller than a production store, averaging 800 to 1,200 square feet. MY FAVORITE MUFFIN: MFM franchised stores daily bake 20 to 25 varieties of muffins from approximately 250 recipes, plus various bagels. They also serve gourmet coffees, beverages, and at My Favorite Muffin and Bagel Cafe locations, various bagel sandwiches and related products. The MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons. SWEETDUET FROZEN YOGURT AND GOURMET MUFFINS: SweetDuet franchised stores daily offer 15 different flavors of frozen yogurt and 15 to 20 toppings from which customers prepare their own yogurt creations. They also serve My Favorite Muffin gourmet muffins, Brewster’s Coffee and a breakfast day part consisted of breakfast sandwiches, a fresh oatmeal and yogurt bar. The SweetDuet is approximately 1600 square feet, with seating capacity for 16 to 20 people. BREWSTER'S COFFEE: Brewster's Coffee products are sold in majority of the franchised units. Suppliers The company's major suppliers are Coffee Bean International; Dawn Food Products, Inc.; Schreiber Foods; Coca-Cola; and U.S. Foods. Trademarks and Service Marks The trademarks and service marks ‘Big Apple Bagels’, ‘My Favorite Muffin’, ‘SweetDuet Frozen Yogurt and Gourmet Muffin', and ‘Brewster's Coffee’ are registered under applicable federal trademark law. The company owns the trademark of ‘Jacobs Bros. Bagels’ upon purchasing certain assets of Jacobs Bros. The ‘Jacobs Bros. Bagels’ mark is also registered under applicable federal trademark law. Government Regulation The company is subject to the Trade Regulation Rule of the Federal Trade Commission entitled 'Disclosure Requirements and Prohibitions Concerning Franchising and Business Opportunity Ventures', and state and local laws and regulations that govern the offer, sale, and termination of franchises and the refusal to renew franchises. The company's franchising operations are subject to regulation by the Federal Trade Commission under the Uniform Franchise Act, which requires, among other things, which the company prepares and periodically updates a disclosure document known as a Franchise Disclosure Documents in connection with the sale and operation of its franchises. Competition The company’s primary direct competitors of its bagel units are Panera Bread Company; Bruegger's Bagel Bakery; and Einstein Noah Restaurant Group, which operate Einstein Bros. Bagels. The company’s primary direct competitors for its yogurt concept are Red Mango, Yogurtland, and TCBY. History BAB, Inc. was incorporated under the laws of the state of Delaware in 2000.
(BABB:OTC Markets Group Inc - OTCQB)
500 Lake Cook Road
Deerfield, IL 60015
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