DoorDash
tomer prior to disbursement of the funds by the Third Party Delivery Service to the Franchisee. Examples of Third Party Delivery Services include, but are not limited to Grub Hub, DoorDash, UberEats,
From the filings
HQ-led decisions
BAB Systems
Quick service restaurantSoftware purchasing at BAB Systems is controlled at the headquarters level, with President and CEO Michael W. Evans and COO Brian J. Evans listed as key executives in the 2026 FDD. The brand already mandates its proprietary BAB Gift Card/Loyalty Program software and the MicroSale POS system across all 48 franchised locations. With no company-owned units and a small, concentrated operator base, the addressable market for new software vendors is limited to these 48 franchisee-run sites, primarily in California and Illinois.
For software vendors selling into US franchise brands.
Live signals
Total units
48
48 franchised
Unit growth YoY
-2.041%
vs prior filing
AUV
—
Item 19, 2026
Royalty
7%
of gross sales
Ad fund
3%
national + local
Initial fee
$25K
per unit
Investment range
$513K–$745K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
10%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
ezCater
rsement of the funds by the Third Party Delivery Service to the Franchisee. Examples of Third Party Delivery Services include, but are not limited to Grub Hub, DoorDash, UberEats, ezCater Marketing Fu
Facebook
-mediated technologies that facilitate the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks, such as Facebook, You Tube,
Grubhub
om the customer prior to disbursement of the funds by the Third Party Delivery Service to the Franchisee. Examples of Third Party Delivery Services include, but are not limited to GrubHub, DoorDash, U
Instagram
the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks, such as Facebook, You Tube, LinkedIn, Twitter, Instagram, Pinterest
LinkedIn
es that facilitate the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks, such as Facebook, You Tube, LinkedIn, Twitter, I
MicroSale
tware maintenance. The hardware and software manufacturers have no obligation to provide ongoing maintenance, repairs, upgrades or 33 updates. The cost of the BAB arrangement with MicroSale includes t
Pinterest
n and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks, such as Facebook, You Tube, LinkedIn, Twitter, Instagram, Pinterest, blogs, or
Twitter
cilitate the creation and sharing of information, ideas, career interests and other forms of expression via virtual communities and networks, such as Facebook, You Tube, LinkedIn, Twitter, Instagram,
Uber Eats
r to disbursement of the funds by the Third Party Delivery Service to the Franchisee. Examples of Third Party Delivery Services include, but are not limited to Grub Hub, DoorDash, UberEats, ezCater Ma
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 20
Franchisor may access Franchisee’s POS System by electronic means, including remote access, modem, the cloud, or any other Internet-based technology available to Franchisor, without Franchisee’s knowledge or consent.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
BAB Operations, Inc. is an approved supplier, but not the only approved supplier of exterior and interior signage, menu panels and certain printed promotional tools.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 20
Franchisor may, from time to time, modify the minimum standards and specifications and/or the list of approved brands and/or suppliers.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
BAB may derive revenue or other material consideration from that supplier, either in the form of a partial reimbursement of the cost of the blueprints, or a credit toward future obligations of BAB to that supplier.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 20
Franchisor shall have the right to charge Franchisee a reasonable fee to cover Franchisor's costs incurred in making such determination.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 20
If Franchisee proposes to use or offer any food products or beverages, other products or services, ingredients or supplies (other than those which must be purchased pursuant to Paragraph 9.b.i.) which do not comply with Franchisor's then-current minimum standards or specifications or which are purchased from a…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 20
if requested by Franchisor, transfer to Franchisor or Franchisor's designee the telephone number of the BAGELS Store and all telephone directory listings associated with the Marks
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 20
Franchisee must also at its own expense comply with security standards established by the Payment Card Industry Security Standards Council, in connection with credit card transactions.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 20
Franchisor shall have the right at any time, and without prior notice to Franchisee, to examine or audit or cause to be examined or audited the business records, bookkeeping and accounting records, bank statements, sales and income tax records and returns, POS System tapes or reports, and other books and records of…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 20
Franchisor may make reasonable modifications to the BAGELS Operations Manual from time to time to reflect changes in the specifications, standards and operating procedures of BAGELS Stores.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
BAB must approve the site for your BAGELS Store.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 20
Franchisee is strictly prohibited from establishing or maintaining any websites, social media accounts or domain names which incorporate any of the Marks, name or initials into its web address.
Is a minimum grand opening advertising spend required?
YesItem 11
You must conduct a Grand Opening marketing campaign that meets our approval.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
In addition to the Grand Opening, you must spend at least 2% of your Gross Revenues on ongoing local advertising.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You must offer for sale BAB Gift Cards and the Loyalty Program, which must be in the form and version we designate and approve.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If at the time you sign a Franchise Agreement, a local advertising cooperative is in existence, or if after you sign a Franchise Agreement, a local advertising cooperative is formed in the area where your BAGELS Store is to be located, you must participate.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all your coffee, which is branded in your store as Brewster's, from our designated supplier.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all your coffee, which is branded in your store as Brewster's, from our designated supplier.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 20
Franchisee agrees to use in the operation of the BAGELS Store only those brands and models of equipment, fixtures, furniture, POS (Point-of-Sale) Systems (“POS System”), fax machines, credit card processor, exterior and interior signs, decor items and tableware that Franchisor has approved for use in BAGELS Stores as…
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee shall make payments of the royalty fee, Marketing Fund contributions, and all other payments due Franchisor through an Electronic Bank Draft Plan on a bank account Franchisee is required to establish and maintain for the purpose of making payments to Franchisor.
Must the franchisee participate in a gift card program?
YesItem 11
You must offer for sale BAB Gift Cards and the Loyalty Program, which must be in the form and version we designate and approve.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 20
The BAGELS Store shall at all times be under the direct personal supervision of Franchisee, and shall at all times be under the full-time management of Franchisee or a qualified manager who has successfully completed Franchisor's training program.
Must employees wear uniforms specified by the franchisor?
YesItem 20
Franchisee shall require all employees to maintain a neat and clean appearance and to conform to the employee uniform requirements as specified by Franchisor from time to time.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 20
Franchisee agrees to use in the operation of the BAGELS Store only those brands and models of equipment, fixtures, furniture, POS (Point-of-Sale) Systems (“POS System”), fax machines, credit card processor, exterior and interior signs, decor items and tableware that Franchisor has approved for use in BAGELS Stores as…
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
BAB has the right to independently poll your POS System (via modem, the cloud, or any other Internet-based technology available to BAB) at any time to obtain sales data, in order to gather sales trend data, product mix information, or any other purpose BAB in its sole discretion deems appropriate.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
BAB may also provide refresher and supplemental training programs; however, none is planned at this time.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You must attend such regional or national conventions.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
VP SalesHead of SalesCROSales Director
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
The vendor opportunity at BAB Systems
BAB Systems operates as a quick-service restaurant franchisor with 48 total units, all of which are franchised. The most recent Franchise Disclosure Document, filed for 2026, shows no company-owned locations, meaning every unit represents a potential software sale to an individual franchisee—though purchasing decisions appear centralized at headquarters. Year-over-year unit growth was negative 2.041%, so the addressable market is contracting slightly. The brand’s footprint is small and geographically concentrated: three mapped operators control approximately three located units, with a unit-band split showing only single-unit operators (1:3) and no multi-unit operators with two or more locations. The top states are California with two units and Illinois with one. For software vendors, the total addressable market is 48 locations, and any sales strategy must account for a centralized buying process and a flat or shrinking unit count.
Who controls software purchasing
The FDD lists Michael W. Evans as President, Chief Executive Officer, and Director, and Brian J. Evans as Chief Operating Officer. These are the highest-ranking executives on file and the most likely decision-makers for enterprise software purchases. Geraldine Conn serves as Chief Financial Officer, which may be relevant for financial or back-office software pitches. No chief information officer, chief technology officer, or VP of IT is named, suggesting a lean leadership structure where technology decisions likely flow through the CEO and COO. Vendors should direct initial outreach to Michael W. Evans and Brian J. Evans, framing value propositions around operational efficiency and franchisee support given the brand’s small corporate team.
Mandated and current tech stack
BAB Systems mandates two specific technology systems across its franchise network: the BAB Gift Card/Loyalty Program software and MicroSale as the point-of-sale system. These are the only named systems in the 2026 FDD. The proprietary gift card and loyalty software suggests the brand places value on customer retention and repeat visits, while MicroSale serves as the transactional backbone. No other operational, inventory, HR, or accounting platforms are disclosed as required or recommended. This creates potential white space for vendors offering complementary solutions—such as scheduling, delivery integration, or advanced reporting—provided they can integrate with or sit alongside MicroSale and the loyalty program without conflicting with the mandate.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract, so the procurement model—whether designated supplier, approved supplier, or open—is not publicly known. Vendors will need to clarify directly with HQ whether franchisees have autonomy to purchase non-mandated software or if all technology must pass through corporate approval. Renewal terms offer a potential entry point: franchisees with an initial 10-year term who are in good standing can renew by paying a $2,500 fee, maintaining or securing substitute premises, remodeling, signing a new agreement and release, and upgrading to then-current standards of decor, equipment, and product offerings. The renewal agreement may contain materially different terms, though the royalty fee will not exceed what similarly-situated renewing franchisees pay. These upgrade requirements at renewal time create natural windows when franchisees must invest in new technology or equipment, making renewal cycles a strategic moment for software vendors to engage.
How to read the BAB Systems FDD
The full 2026 Franchise Disclosure Document is embedded below. Key sections for software vendors include Item 1 (executive team), Item 11 (mandated systems and franchisor assistance), Item 8 (procurement restrictions, though not extracted here), and Item 17 (renewal and upgrade conditions). The document reveals a small, centrally-controlled franchise system where the CEO and COO are the primary buying influences, the tech stack is lean but mandated in two areas, and the unit count is modest at 48 locations. For a ranked target list of franchise systems aligned with your software category, FranCloud can help you prioritize opportunities like this one.
Questions vendors ask
BAB Systems, answered from the filing
President and CEO Michael W. Evans and COO Brian J. Evans are the top executives on file. The FDD does not name a CIO or IT lead, so initial outreach should target these two decision-makers.
The 2026 FDD mandates the BAB Gift Card/Loyalty Program software and MicroSale as the point-of-sale system. No other operational or back-office systems are disclosed as required or recommended.
There are 48 total units, all franchised. No company-owned locations are disclosed. The footprint is concentrated in California (2 units) and Illinois (1 unit) based on mapped operator data.
The FDD does not include an Item 8 procurement extract, so the designated-supplier versus approved-supplier model is not publicly disclosed. Vendors should inquire directly about any preferred or required purchasing channels.
Initial franchise terms are 10 years. Renewal requires a $2,500 fee, premises maintenance or substitution, remodeling, and upgrade to then-current standards—creating potential touchpoints for new software when franchisees renew or remodel.
The 2026 FDD was filed with state franchise regulators. You can view the full document in the embedded PDF viewer below to analyze tech mandates, executive contacts, and renewal conditions directly.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment BAB Systems files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
3 operators run 3 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit3
Top states by locations
| CA | 2 |
|---|---|
| IL | 1 |
Ownership
The portfolio behind BAB Systems
unknown of bab holdings.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.