What is the legal structure of BAB Systems, Inc., the franchisor for Big Apple Bagels?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
BAB Systems, Inc. (the "Company") franchises and licenses Big Apple Bagels® ("BAB"), My Favorite Muffin® ("MFM") and SweetDuet Frozen Yogurt & Gourmet Muffins® ("SD") concepts located in the United States. The franchised units operating as "Big Apple Bagels®," featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. The BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as "My Favorite Muffin Gourmet Muffin Bakery™" ("MFM Bakery"), featuring a large variety of freshly baked muffins and coffees and units operating as "My Favorite Muffin Your All-Day Bakery Café®" ("MFM Cafe") featuring these products as well as a variety of specialty bagel sandwiches and related products. Although the Company doesn't actively market Brewster's stand-alone franchises, Brewster's coffee products are sold in most franchised units.
The Company, an Illinois Corporation, incorporated on December 2, 1992, was capitalized with a cash contribution by BAB, Inc. ("Inc"), a publicly traded Company, and was originally established to franchise "Big Apple Bagels®" stores.
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to the 2025 Big Apple Bagels Franchise Disclosure Document, BAB Systems, Inc., the franchisor, is an Illinois Corporation. The company was incorporated on December 2, 1992. It was initially capitalized through a cash contribution from BAB, Inc., which is identified as a publicly traded company.
This information is relevant for prospective franchisees as it clarifies the legal entity they will be contracting with. Understanding the franchisor's corporate structure can provide insights into its stability, financial obligations, and overall business practices. Knowing that BAB Systems, Inc. is an Illinois corporation allows franchisees to research the corporation's standing and history within the state.
The fact that BAB Systems, Inc. was capitalized by a publicly traded company, BAB, Inc., suggests a degree of financial backing and potential access to resources. However, prospective franchisees should independently verify the current financial status and relationship between the two entities to assess any potential implications for the franchise system. It is important to note that while the FDD identifies BAB, Inc. as the parent company and owner of the trademarks, franchisees should confirm the current ownership and control structure during their due diligence.
Overall, the corporate structure of Big Apple Bagels' franchisor provides a foundation for understanding the legal and financial framework of the franchise system. Prospective franchisees should use this information as a starting point for further investigation and consultation with legal and financial advisors to make informed decisions.