My Favorite Muffin Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
My Favorite Muffin is a quick-service franchise serving fresh-baked muffins, bagels, and coffee. Franchisees run the cafes, managing baking, food prep, and counter service.
FranchiseVerdict summary · 2026
A My Favorite Muffin franchise requires a total initial investment of $424K – $671K, including a $30K 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 30.8% charge-off rate across 31 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
- $424K – $671K
- 69th pct Service Resta…
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 12
- 41st pct Service Resta…
- SBA charge-off
- 30.8%
- % 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 $424K – $671K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSFY ending Nov 30, 2025. Audited financials of BAB Systems, Inc. (a wholly owned subsidiary of BAB, Inc.); franchisor of My Favorite Muffin. Revenues: royalty fees $1,984,438; franchise fees and other $144,002; marketing fund revenue $1,142,281.
- RISKVerdict C (Average), verdict score 39/100 (higher is better). SBA loan charge-off rate of 30.8% across 31 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.
- 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
Overview
About
- CEO
- Michael W. Evans
- Headquarters
- IL
- Founded
- 1992
- FDD year
- 2026
- States available
- 8
Can you afford it, and what does the money buy?
Entry cost runs 17% below the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $12K | $18K |
| Equipment, build-out, other | $382K | $623K |
| Total initial investment | $424K | $671K |
Source: My Favorite Muffin 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $424K – $671K
- Bottom third — review vs category
- Liquid capital req'd
- $12K – $18K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- 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 |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Inventory (initial) | $11K – $16K |
| 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
My Favorite Muffin 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 My Favorite Muffin unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
19%
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
FY ending Nov 30, 2025. Audited financials of BAB Systems, Inc. (a wholly owned subsidiary of BAB, Inc.); franchisor of My Favorite Muffin. Revenues: royalty fees $1,984,438; franchise fees and other $144,002; marketing fund revenue $1,142,281.
Reported for a subset of outlets rather than the whole system
- Median gross sales
- $792K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
No system-wide average is published for this brand. The median and range below are what Item 19 supports; we show an average only where it reconciles against them.
- Item 19 type
- gross sales by quartile
- Sample size
- 11
- vs category median 20
- Range (low → high)
- $250K→$1.4M
- Cohort dispersion (min → max)
- Quartile band
- $393K→$1.2M
- Bottom 25% → top 25%
- 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 -7.7% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 9% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 My Favorite Muffin Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 41.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 9.1%
- Net growth (3-yr)
- -7.7%
- Net unit change over 3 years
- 3-yr CAGR
- -7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 5
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 3
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 8 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.
8
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
- 31
- Loan volume
- $6.1M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 30.8%
- 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)
- 69.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 22
- Defaults
- 8
- Typical loan rate
- 7.0%
- avg rate to borrowers
- Franchised industry avg
- 9.8%
- brand above franchise avg ↑
- Jobs supported
- 122
- 2.0 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in baked goods stores, franchised businesses charge off at 9.8% vs 17.7% for independents — franchising is associated with 45% lower SBA default risk in this category.
Vintage analysis
My Favorite Muffin charge-off rate by loan vintage
Top lenders financing My Favorite Muffin franchisees
Showing 3 of 22 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 My Favorite Muffin'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 14 states
- Startup risk premium and job creation velocity
- 17-year lending trend
Instant access. No subscription.
A 30.8% 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 30.8% — 92% 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
My Favorite Muffin presents CAUTION-to-HIGH RISK due to going concern issues, minimal system size, absent profitability data, and unprotected territories — unsuitable for most franchisees without direct validation from existing operators.
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 39 / 100 verdict
- 01HIGHGoing Concern status is FALSE — suggests financial instability or unresolved operational issues at corporate level
- 02MEDNet Income not disclosed in Item 19 — unable to validate actual profitability; $781k average revenue may not translate to acceptable owner earnings
- 03MINOROnly 12 units with unknown growth trajectory — extremely small system raises questions about scalability, support infrastructure, and corporate viability
- 04MINORTerritory not protected — franchisees face direct competition from other franchisees and corporate-owned locations; market saturation risk
- 05MINOR5% royalty on gross revenue during potential negative cash flow periods — burdensome given lack of profitability disclosure
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 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois |
| Jury trial waiver | No |
| Governing law | IL |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 115 hrs
- Training location
- BAB corporate offices (500 Lake Cook Road, Deerfield, Illinois) or via telecommunication platform (e.g., Zoom); operational training at designated franchise Store
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee (BAB assists and 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
27 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
My Favorite Muffin · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a My Favorite Muffin franchise?
The total investment to open a My Favorite Muffin franchise ranges from $424K – $671K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do My Favorite Muffin franchise owners earn?
My Favorite Muffin 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 My Favorite Muffin 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 My Favorite Muffin FDD and qualifies whose outlets they describe.
What is My Favorite Muffin's franchise failure rate?
Based on SBA 7(a) loan data, My Favorite Muffin has a charge-off rate of 30.8% across 31 loans, meaning 30.8% 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 My Favorite Muffin franchise locations are there?
As of their most recent FDD filing, My Favorite Muffin has 12 total units in the United States, including 12 franchised units and 0 company-owned units.
Is My Favorite Muffin a good franchise to buy?
FranchiseVerdict rates My Favorite Muffin as a C-grade franchise with a verdict score of 39 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.