My Favorite Muffin Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$272,500 - $687,500
Franchise Fee
$15,000
Total US Locations
12
Business Summary
My Favorite Muffin offers two distinct muffin store concepts. The My Favorite Muffin Gourmet Muffin Bakery primarily sells muffins and coffee. The My Favorite Muffin Your All Day Bakery Cafe offers a broader menu including muffins, bagels, cream cheese spreads, breakfast and lunch sandwiches, coffee beverages, and soft drinks. Franchisees operate these businesses as retail stores with capacity for baking, production, and on-site consumption of products, and may also engage in wholesale and catering programs.
Corporate History
BAB Systems, Inc., the franchisor of My Favorite Muffin, was formed as an Illinois corporation in December 1992. It is a subsidiary of BAB, Inc. My Favorite Muffin began offering its franchises in 1998. Initially, My Favorite Muffin franchises were offered alongside Big Apple Bagels franchises under a single disclosure document. However, in September 2018, My Favorite Muffin transitioned to its own separate franchise disclosure document, differentiating its "Gourmet Muffin Bakery" concept from its "Your All Day Bakery Cafe" concept, which mirrors the offerings of the former combined brand.
Financial Overview
Investment Range
$272,500 - $687,500
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$30,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$220,000
Equipment Costs (High)
$565,000
Working Capital
$9,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
My Favorite Muffin appears to be in sound financial health, having consistently reported positive net income and increased retained earnings across the fiscal years 2022, 2023, and 2024. The independent auditors issued an unqualified opinion on the financial statements, indicating that they present fairly the financial position of the company. While the financial statements show amounts "Due from BAB, Inc." and "Due from BAB Operations" which are described as contra-equity accounts because funds in those affiliates are limited, management does not believe any goodwill impairment exists, and no substantial doubt about My Favorite Muffin's ability to continue as a going concern was raised by the auditors.
Financing Details
My Favorite Muffin generally does not offer direct or indirect financing. However, on one occasion, the franchisor offered an equipment rental agreement to a franchisee who lacked funds to purchase necessary equipment. The terms of this specific agreement were negotiated individually, requiring weekly payments over seven years, with an option to purchase the equipment for its unamortized value. The franchisee was responsible for insuring the equipment, and non-payment could lead to seizure of equipment and recovery of attorney's fees.
Performance Metrics
Total US Locations
12
Franchised Units
12
Corporate Units
0
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
My Favorite Muffin has no litigation to report, as Item 3 of the FDD states that no litigation is required to be disclosed.
Bankruptcy History
My Favorite Muffin has no bankruptcy history to report, as Item 4 of the FDD states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their My Favorite Muffin franchise agreement, franchisees must give written notice between six and twelve months before the current term ends. They must be in good standing, meaning they have no material breaches of their agreement and have consistently met operating and quality standards. Franchisees must also pay a $2,500 renewal fee, ensure their store location and lease are approved by My Favorite Muffin, agree to upgrade the store to current standards for decor, equipment, and product offerings, comply with current qualification and training requirements, and sign a general release of any claims against My Favorite Muffin.
Training & Support Program
Franchisor Assistance
Before opening, My Favorite Muffin assists franchisees with site selection (though franchisees are responsible for locating the site), provides basic store drawings and specifications (to be adapted by a local architect), lends the MFM Operations Manual, and guides them on purchasing approved equipment, signs, fixtures, initial inventory, and supplies. After the store opens, My Favorite Muffin provides additional on-site training near the opening time, and continues to lend and update the MFM Operations Manual. Ongoing guidance is furnished on operating procedures, purchasing, food preparation, and administrative management through various communication channels like an intranet, bulletins, reports, and consultations. My Favorite Muffin also defends franchisees in legal proceedings concerning the Marks, conducts market research for new products, approves products and suppliers, manages a Marketing Fund for system-wide advertising, and reviews local advertising materials created by franchisees. Franchisees are also required to attend any refresher training programs or regional/national conventions.
Initial Training Hours
190
Training Location
Corporate offices in Deerfield, Illinois or via telecommunication platform (Zoom) for classroom/online instruction; designated operational franchise store or franchisee's own new store for operational training.
Ongoing Support
After opening, My Favorite Muffin provides ongoing support by continuing to lend the MFM Operations Manual and supplying regular updates to reflect changes in standards and procedures. Franchisees receive guidance on operating procedures, purchasing approved items, food preparation methods, and maintaining administrative and management practices through the Operations Manual, an intranet, bulletins, written reports, telephone consultations, or in-person visits. My Favorite Muffin also conducts market research for new products, reviews and approves franchisee-proposed products and suppliers, and administers a Marketing Fund to which all franchisees contribute for system-wide marketing and promotional programs. The franchisor also offers additional refresher and supplemental training programs, and franchisees are required to attend regional or national conventions.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Staffing Notes
My Favorite Muffin requires that each store be directly supervised on-premises by a manager who has successfully completed the franchisor's training program. While the franchisee is required to supervise the store, they are not necessarily required to personally manage it. Franchisees or their managers are solely responsible for all aspects of hiring, retention, firing, scheduling, wages, benefits, and disciplinary actions for their employees. All managers must sign a Confidentiality and Non-Competition Agreement. My Favorite Muffin emphasizes that the franchisee is the sole employer and not a joint employer with the franchisor.