Big Apple Bagels Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Big Apple Bagels is a quick-service franchise serving fresh-baked bagels, deli sandwiches, muffins, and coffee. Franchisees run the cafes, managing on-site baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A Big Apple Bagels franchise requires a total initial investment of $513K – $745K, including a $25K franchise fee and an ongoing 5.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 34.6% charge-off rate across 83 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $513K – $745K
- 78th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 48
- 65th pct Service Resta…
- SBA charge-off
- 34.6%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $513K – $745K including a $25K franchise fee, 5.0% ongoing royalty.
- RETURNSAudited financial statements of BAB Systems, Inc. (a wholly owned subsidiary of BAB, Inc.). FY ended Nov 30, 2025. Total Revenues $3,270,721 comprised of royalty fees $1,984,438, marketing fund revenue $1,142,281, and franchise fees and other $144,002. franchisor_revenue_yr1/yr2 reflect royalty fees for 2025/2024; other_revenue reflects marketing fund revenue.
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 34.6% across 83 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DATAItem 19 reports gross sales by quartile rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- BAB Systems, Inc.
- Parent company
- BAB, Inc.
- Predecessor
- of BAB
- Prior franchisor entity
- CEO title
- President, Chief Executive Officer and Director
- Michael W. Evans
- Incorporated in
- IL
- HQ
- 500 Lake Cook Road, Suite 475, Deerfield, Illinois 60015
- Auditor
- Sassetti LLC
- Audited financials
- Franchisor revenue
- $3.3M
- vs $3.3M prior year
Affiliated brands
- To simplify the language in this Franchise Disclosure Document
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Michael W. Evans
- Headquarters
- IL
- Founded
- 1992
- FDD year
- 2026
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $25K | $25K | |
| Store Opening Marketing Feenot refundable | $8K | $8K | |
| Professional Feesnot refundable | $5K | $10K | |
| First Month's Rent and Security Depositnot refundable | $4K | $9K | |
| Insurancenot refundable | $5K | $9K | |
| Leasehold Improvementsnot refundable | $200K | $350K | |
| Exterior and Interior Signage and Displaynot refundable | $6K | $12K | |
| Furniture, Fixtures, Equipmentnot refundable | $230K | $275K | |
| Trainingnot refundable | $3K | $5K | |
| Prepaid Expenses, Depositsnot refundable | $500 | $2K | |
| Opening Inventory, Suppliesnot refundable | $15K | $23K | |
| Additional Funds - 3 monthsnot refundable | $12K | $18K | |
| Total initial investment | $513K | $745K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $513K – $745K
- Bottom third — review vs category
- Liquid capital req'd
- $12K – $18K
- Top 40% of category vs category
- Franchise fee
- $25K – $25K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $95 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $15K – $23K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Big Apple Bagels did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Big Apple Bagels unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
16%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Audited financial statements of BAB Systems, Inc. (a wholly owned subsidiary of BAB, Inc.). FY ended Nov 30, 2025. Total Revenues $3,270,721 comprised of royalty fees $1,984,438, marketing fund revenue $1,142,281, and franchise fees and other $144,002. franchisor_revenue_yr1/yr2 reflect royalty fees for 2025/2024; other_revenue reflects marketing fund revenue.
- Item 19 type
- gross sales by quartile
- Sample size
- 47
- vs category median 20 · large
- Range (low → high)
- $174K→$1.4M
- Cohort dispersion (min → max)
- Quartile band
- $365K→$923K
- Bottom 25% → top 25%
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Item 19 reports gross sales by quartile rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
System contracting at -2.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Big Apple Bagels Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 48
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -2.0%
- Net unit change over 3 years
- 3-yr CAGR
- -2.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
12
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 83
- Loan volume
- $11.0M
- Median loan
- $128K
- 50th percentile
- Charge-off rate
- 34.6%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 65.4%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 48
- Defaults
- 27
- Typical loan rate
- 6.8%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand above franchise avg ↑
- Jobs supported
- 420
- 3.8 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Big Apple Bagels charge-off rate by loan vintage
Top lenders financing Big Apple Bagels franchisees
Showing 3 of 48 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Big Apple Bagels's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 21-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
A 34.6% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 34.6% — 116% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Big Apple Bagels presents moderate-to-caution risk due to declining unit growth, absent net income disclosure, unprotected territories, and high capital requirements relative to an unproven ROI model.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Sassetti LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 01MINORDeclining unit count (-2.0% YoY) signals system contraction and potential franchisee dissatisfaction
- 02MEDNet income not disclosed in FDD Item 19 — impossible to validate profitability claims or ROI
- 03MINORNo protected territory creates direct competition risk; new units could cannibalize existing franchise revenue
- 04MINORHigh initial investment ($512.5K–$745K) with unverified return expectations and no income disclosure
- 05MINOR5% royalty on $632K average revenue = $31.6K annual payment with unknown profit margins
- 06MED48-unit system is small and vulnerable; limited economies of scale and supplier negotiating power
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois |
| Jury trial waiver | No |
| Governing law | IL |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 109 hrs
- Training location
- BAB corporate offices, Deerfield, Illinois or via Zoom; operational training at designated franchise store and franchisee's own store
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee locates; BAB must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- MicroSale
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MicroSale
Item 20 · call current owners
Franchisee Contacts
52 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Big Apple Bagels · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Big Apple Bagels franchise?
The total investment to open a Big Apple Bagels franchise ranges from $513K – $745K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Big Apple Bagels franchise owners earn?
Big Apple Bagels does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Big Apple Bagels FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Big Apple Bagels FDD and qualifies whose outlets they describe.
What is Big Apple Bagels's franchise failure rate?
Based on SBA 7(a) loan data, Big Apple Bagels has a charge-off rate of 34.6% across 83 loans, meaning 34.6% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Big Apple Bagels franchise locations are there?
As of their most recent FDD filing, Big Apple Bagels has 48 total units in the United States, including 48 franchised units and 0 company-owned units.
Is Big Apple Bagels a good franchise to buy?
FranchiseVerdict rates Big Apple Bagels as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.