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SUBJECT DOSSIER · FDD 2026

BAM Franchise

Cost, fees, owner earnings, closure rate and litigation for a BAM franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Bakery, Dessert & Ice Cream · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

BAM discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets52
Disclosed lawsuits3
Closure signals13 ceased
Investment
$142,500–$439,500
Total fees
4% of sales
Outlets
52
Closure signals
13 ceased, 0 terminated
Lawsuits
3
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 20
13 outlets ceased operations
2025: 13 ceased operations (21% of 60 start outlets); net decline -8. 2024: 12 ceased (17%); net -9.
ITEM 03
3 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

What their own earnings claim actually says

No financial performance representations disclosed. Franchisor explicitly states it makes no representations about franchisee future or past outlet financial performance.

What a BAM franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$35,000Item 5 — paid up front, before you open
Royalty4% of gross salesItem 6 — charged on revenue, not profit
Total recurring fees4% of gross salesBefore rent, labor, food or debt service
Total initial investment$142,500 – $439,500Item 7 — franchisor's own low/high estimate

Monthly royalty $850 minimum; marketing $575/month; 4% of Net Revenues (whichever higher). Transfer fee $15,000. Non-refundable fees.

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

BAM system size and owner turnover

Total outlets52
Ceased operations13
Terminated by franchisor0
Transferred to new owners4
Closure rate25.0% of outlets

2025: 13 ceased operations (21% of 60 start outlets); net decline -8. 2024: 12 ceased (17%); net -9.

From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.

Is BAM worth it? — how it compares to 59 similar franchises

Ongoing fees4% of saleslower than most (median 7.5%)
Startup costfrom $142,500cheaper than most (median $209,354)
Disclosure honestyGrade Fless honest than most of the category
Closure rate25.0% of outletsworse than 93% of peers
Disclosed lawsuits3more litigious than 77% of peers

Benchmarked against every bakery, dessert & ice cream franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a BAM

The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly states it makes … We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

See a full sample report → · 30-day guarantee

BAM franchise — frequently asked

How much does a BAM franchise cost?
The FDD lists a total initial investment of about $142,500–$439,500, including a $35,000 initial franchise fee.
How much do BAM franchise owners make?
BAM discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
What are the BAM franchise fees?
BAM's FDD discloses a $35,000 initial franchise fee, a 4% royalty on gross sales, for roughly 4% of gross sales in recurring fees before rent, labor, or debt service. Monthly royalty $850 minimum; marketing $575/month; 4% of Net Revenues (whichever higher). Transfer fee $15,000. Non-refundable fees.
What is the BAM franchise profit margin?
BAM discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
What is the BAM franchise failure rate?
2025: 13 ceased operations (21% of 60 start outlets); net decline -8. 2024: 12 ceased (17%); net -9.
How many BAM locations are there?
BAM's FDD reports 52 total outlets, with 13 that ceased operations in the most recent reporting year and 4 transferred to new owners. Item 20 is where system health shows up before the marketing does.
Does BAM have complaints or lawsuits?
BAM discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
Is a BAM franchise worth it?
It depends on the numbers, not the pitch. BAM scores F on disclosure honesty, carries about 4% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.

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Source: MN CARDS 35881-202604-11 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with BAM or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.