My Favorite MuffinFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A My Favorite Muffin franchise requires a total initial investment of $298K – $748K, including a $30K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $781K[2]. SBA 7(a) loans show a 30.8% charge-off rate across 31 loans[1]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $298K – $748K
- 59th pct Service Resta…
- Avg gross sales
- $781K
- 24th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 12
- 38th pct Service Resta…
- SBA default
- 30.8%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
30.8% of SBA loans charged off across 31 loans, above the 16% franchise average.
Franchising since 1998. Systems this mature have refined operations and brand recognition.
Franchised units fell from 17 to 12 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $298K – $748K including a $30K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $781K/year.
- Verdict C (Average) with a risk score of 68/100. 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, 2010–2024).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- BAB SYSTEMS, INC.
- Parent company
- BAB, Inc.
- 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
My Favorite Muffin franchisees operate bakery-café retail locations focused on freshly baked muffins and complementary beverages. Day-to-day operations include inventory management, baking/food preparation, direct customer service, staff scheduling, and local marketing. Franchisees manage P&L, rent, labor, and ingredient costs while paying 5% of gross revenues to corporate.
- CEO
- MICHAEL W. EVANS
- Headquarters
- IL
- Founded
- 1992
- FDD year
- 2026
- States available
- 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 | $256K | $700K |
| Total initial investment | $298K | $748K |
Source: My Favorite Muffin 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$109K
14.0% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
4.9 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $748K
- Near category avg vs category
- Liquid capital req'd
- $12K – $18K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenues · 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 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $781K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 12 units
- vs category median 28 · small
- Range (low → high)
- $250K→$1.4M
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How My Favorite Muffin Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 9.1%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
Vintage analysis
My Favorite Muffin charge-off rate by loan vintage
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Sassetti LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 68 / 100 rating
- 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
- 05MEDHigh investment range ($297.5k–$747.5k) relative to system size and undisclosed profitability — unfavorable risk/reward ratio
- 06MINOR5% 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 143 hrs
- POS system
- Emerge i3 Point of Sale System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Emerge i3 Point of Sale System
Item 20 · call current owners
Franchisee Contacts
30 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 $298K – $748K, 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?
According to Item 19 of the My Favorite Muffin FDD, the average gross sales per unit is $781K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 17 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 risk score of 68 out of 100, 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.
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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.