Bagelz

Center for Entrepreneurial Studies,
Babson College © 1996

ISBN 0-324-00504-0

Case Teaching Package
A case teaching package, written by Stephen Spineeli, is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 26 pages in length and its case teaching package is 14 pages.

Abstract

Mike Bellobuono and his three partners owned Bagel Boys, a seven store Connecticut-based bagel chain. In 1993, Mike and his team were approached by Subway sandwich co-founder Fred DeLuca. Fred offered to partner with Bagel Boys and turn them into a franchised operation. The Bagel Boys team carefully considered the pros and cons of aligning with the sandwich giant—which had recently received some unfavorable publicity regarding their franchisor/franchisee relations—and eventually agreed to form a partnership.

Aligning with Fred DeLuca and Peter Buck (Fred's Subway partner) offered Bagel Boys a high-growth vehicle—essential to compete against other industry players such as Bruegger's and Manhattan Bagel. But this raised new concerns because as the company expanded, the difficulty of maintaining uniform operating standards and the likelihood of franchisee problems also increased. With the goal of rapid expansion, the team now needed to address a specific growth plan, including the way they selected franchisees, the company's internal management structure, and franchise support system.

• Location of the company: Connecticut
• Years spanned by the case: 1993 through 1996
• Industry segment: Bagels
• Stage of the company: Growth
• Age of the entrepreneurs: 26