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BIG APPLE BAGELS
BAB Systems, Inc. offers franchises for Big Apple Bagels stores, where franchisees own and operate bagel shops selling fresh bagels, cream cheese spreads, My Favorite Muffin branded muffins, Brewster’s coffee, breakfast and lunch sandwiches, and soft drinks through retail, wholesale, and catering channels. The business model centers on production stores for baking and satellite stores supplied by them, with franchise fees, royalties, and required purchases from approved suppliers. It targets retail consumers in the competitive bagel, bakery cafe, and coffee market.
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Franchise Costs
5% royalty + 3% marketing fund
Financial Performance
Item 19 Financial Performance
Data Based On: 12 fully-reporting franchised MFM Stores located in the United States that were operated for the entire 2024 and 2025 Fiscal Years.
* Calculated weighted average gross revenue for 2025 across all 12 franchised stores. MFM Cafe Stores: (3 units × $1,175,112) + (2 units × $835,262) + (3 units × $735,994) + (3 units × $392,893). MFM Bakery Store: (1 unit × $790,836). Total = (3+2+3+3+1) = 12 units. Average = $781,113.08. Revenue top quartile is the average for the 1st Quartile of MFM Cafe Stores in 2025. Revenue bottom quartile is the average for the 4th Quartile of MFM Cafe Stores in 2025. Median gross revenue cannot be calculated without individual store revenues for all 12 stores, as only quartile medians for Cafe stores and a single value for the Bakery store are provided. No profit or EBITDA data is provided as explicitly stated in the document's 'Material Bases and Assumptions' section.
Extracted Item 19 Section
Avg. Revenue: $781,113
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Unlock financial performance dataBIG APPLE BAGELS Franchise Analysis
In a bagel market crowded with giants, Big Apple Bagels holds a niche with its fresh-baked model and dual-store setup for production and retail. Item 19 financials paint a picture of steady performance in a small system, while SBA lending history uncovers some real-world financing hurdles. Can this veteran brand from 1993 deliver the returns you're chasing in today's fast-casual scene?
Item 7 of the 2026 FDD outlines the initial investment from $424,000 to $670,500, covering the $30,000 franchise fee, equipment, buildout, and initial inventory for either a production bakery or satellite store. Ongoing fees hit 5% royalties plus 3% into the brand/ad fund, with required buys from approved suppliers keeping operations tight. Item 19 discloses average gross revenues of $781,113 per unit, a solid figure for bagel shops selling everything from spreads to Brewster's coffee and sandwiches via retail, wholesale, and catering—though profitability hinges on controlling food costs in a competitive space.
The system's 12 locations showed zero net growth from 2024 to 2025, with just 2 projected new units and 2 transfers, signaling caution in expansion amid market saturation. SBA data reveals 10 loans averaging $98,400 but a concerning 20% default rate, higher than many peers and hinting at cash flow pressures for some owners. For buyers eyeing food franchises under $700K, the established playbook since 1993 offers reliability, but flat growth and loan risks mean scrutinizing local demographics and your ops experience before diving in.
Analysis based on the 2026 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How BIG APPLE BAGELS Compares
Key Insights
- Lower than average SBA loan default rate in Fast Food
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
BIG APPLE BAGELS Current | $424K – $671K | $30K | 5.0% | 12 |
| MCDONALD'S | $1.5M – $2.6M | $45K | N/A | 12,772 |
| LITTLE CAESARS | $377K – $1.8M | $20K | 6.0% | 3,788 |
| AFC | $45K – $151K | $6K | 9.5% | 3,572 |
| KFC (NON-TRADITIONAL) | $1.2M – $4.2M | $45K | N/A | 3,404 |
| SONIC DRIVE-IN | $1.5M – $2.5M | $15K | 5.0% | 3,120 |
Fast Food Average 132 franchises | $602K – $1.6M | $35K | 6.1% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 132 Fast Food franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for BIG APPLE BAGELS franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
10 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
48 franchisee contacts on file from official FDD filings.
48 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a BIG APPLE BAGELS franchise ranges from $424,000 to $670,500. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
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