BAB, Inc. franchises and licenses bagel and muffin retail units under the BAB, MFM and SweetDuet (SD) trade names. As of November 30, 2015, the company had 84 franchise units and 3 licensed units in operation in 23 states and 1 international location. There are 7 units under development. The company sells its trademark bagels, muffins and coffee through nontraditional channels of distribution, including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops and Green Beans Coffee. For franchise consistency and convenience, the Sign Shop provides the majority of signage to franchisees, including but not limited to, menu panels, build charts, interior and exterior signage and point of purchase materials. 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 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 Café’, featuring these products, as well as various specialty bagel sandwiches and related products. The SD brand is a fusion concept, pairing self-serve frozen yogurt with MFM’s exclusive line of My Favorite Muffin gourmet muffins. SD frozen yogurt could be added as an additional brand in a BAB or MFM location. Store Operations BIG APPLE BAGELS: BAB franchised stores bake various fresh bagels daily and offer approximately 11 flavors of cream cheese spreads. Stores also offer an assortment of breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees and other beverages. A typical 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 typically smaller than a production store, averaging 800 to 1,200 square feet. MY FAVORITE MUFFIN: MFM franchised stores bake 20 to 25 varieties of muffins daily 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 typical MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons. SD: The company has one SD franchised store, which offers frozen yogurt and various toppings from which customers prepare their own yogurt creations. They also serve My Favorite Muffin gourmet muffins and Brewster’s Coffee. BREWSTER'S COFFEE: Brewster's coffee products are sold in various 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’, 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 prepare and periodically update a disclosure document known as a Franchise Disclosure Documents in connection with the sale and operation of its franchises. Competition The primary direct competitors of the company’s bagel units are Panera Bread Company, Bruegger's Bagel Bakery and Einstein Noah Restaurant Group, which operate Einstein Bros. Bagels. The primary direct competitors for the company’s yogurt concept are Red Mango, Yogurtland, and TCBY. History BAB, Inc. was incorporated under the laws of the state of Delaware in 2000.
bab inc (BABB:OTC US)
500 Lake Cook Road
Deerfield, IL 60015
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