BAB, Inc. operates franchises and licenses bagel and muffin retail units under the BAB and MFM trade names. As of November 30, 2012, the company had 100 franchise units and 6 licensed units in operation in 24 states. The company also sells trademark bagels, muffins and coffee through nontraditional channels of distribution including under licensing agreements with Kohr Bros. Frozen Custard, Kaleidoscoops, Green Beans Coffee, Sodexo and 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 a large variety of 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. In May 2012, the company launched its new franchise concept, SweetDuet Frozen Yogurt & Gourmet Muffins (SweetDuet). SweetDuet is a fusion concept, pairing self-serve frozen yogurt with BAB’s line of My Favorite Muffin gourmet muffins, broadening the shop’s offering and therefore differentiating itself from the various frozen yogurt outlets already populating the market. SweetDuet shops would also include BAB’s Brewster’s Coffee and a streamlined breakfast menu. Suppliers The company's major suppliers are Coffee Bean International, Dawn Food Products, Inc., Schreiber Foods, Coca-Cola and U.S. Foods. Store Operations BIG APPLE BAGELS--BAB franchised stores daily bake various fresh bagels and offer up to 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 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. 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 typical MFM store design is approximately 1,800 square feet, with seating capacity for 20 to 30 persons. BREWSTER'S COFFEE--Brewster's stand-alone franchises, Brewster's coffee products are sold in most of the franchised units. Trademarks and Service Marks The trademarks and service marks ‘Big Apple Bagels,’ ‘My Favorite Muffin’ and ‘Brewster's Coffee’ are registered under applicable federal trademark law. These marks are licensed by the company to its franchisees pursuant to Franchise Agreements. In 1999, the company acquired 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. Regulation The company is subject to the Trade Regulation Rule of the Federal Trade Commission (the FTC) 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. Competition The company’s direct competitors are Einstein Noah Restaurant Group, which operate Einstein Bros. Bagels, Panera Bread Company and Bruegger's Bagel Bakery. The company also competes against various small, independently owned bagel bakeries and national fast food restaurants, such as Dunkin' Donuts, McDonald's and Starbucks that offer bagels, muffins, coffee and related products as part of their product offerings. History BAB, Inc. was incorporated in 2000.
bab inc (BABB:OTC US)
500 Lake Cook Road
Deerfield, IL 60015
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