HoneyBaked Store Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$581,400 - $876,950
Franchise Fee
$15,000
Min Cash Required
$50,000
Total US Locations
439
Business Summary
The Honey Baked Ham Co. operates retail stores specializing in the sale of hams, turkeys, and other proprietary products. These stores also feature on-site cafés that serve sandwiches, salads, beverages, and other menu items. The business operates under the 'Honey Baked Ham' and 'The Honey Baked Ham Co.' names, utilizing a specific operating system that includes unique standards, recipes, and management systems for food preparation, marketing, and sales.
Corporate History
The HBH Franchise Company, LLC (HBH) was organized in Georgia on July 8, 1998. It began offering franchises for HoneyBaked Stores shortly after, on August 5, 1998. Initially, HBH operated under a license from HBH Limited Partnership, which began in October 1998, allowing HBH to use and license the HoneyBaked System and Marks to its franchisees. In a significant transaction on May 4, 2015, HBH's affiliate, The Honey Baked Ham Company, LLC (HBH Co.), acquired the entire HoneyBaked System and its Marks from the HBH Limited Partnership. HBH Co. also acquired the company-owned stores at that time. Following this acquisition, HBH Co. granted a new license to HBH to continue using and franchising the System and Marks.
Financial Overview
Investment Range
$581,400 - $876,950
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$15,000
Minimum Cash Required
$50,000
Royalty %
6%
Marketing %
4.25%
Equipment Costs (Low)
$186,000
Equipment Costs (High)
$227,500
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Honey Baked Ham Co. has an unqualified audit opinion, indicating that its financial statements present fairly in all material respects. However, its cash balance decreased significantly from $801,000 in 2022 to $30,000 in 2024, and net income also saw a notable decline from $4,639,000 in 2022 to $53,000 in 2024. Despite these trends, the company maintains strong short-term liquidity, with current assets of $44,782,000 significantly exceeding current liabilities of $1,213,000 in 2024. The Honey Baked Ham Co. also guarantees a revolving credit agreement for its parent company, with outstanding and guaranteed amounts reaching $50,540,000 in 2024.
Financing Details
The Honey Baked Ham Co. does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations of the franchisee.
Performance Metrics
Total US Locations
439
Franchised Units
208
Corporate Units
231
Avg Square Footage
2,300
Franchising Since
1998
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
The Honey Baked Ham Co. has disclosed one concluded legal matter involving two former franchisees, Colleen & Gerald Randall Enterprises, LLC and Catering Gardens, LLC. The lawsuit was filed on June 10, 2014, in Georgia. The former franchisees alleged that The Honey Baked Ham Co. made improper claims about start-up costs and revenues, required them to open at a substandard site, provided inadequate training, refused a store transfer, and allowed a new store to open within an existing franchisee's territory. The complaint included twelve counts, such as breach of contract and various forms of fraud. The Honey Baked Ham Co. denied these allegations and filed counterclaims. The dispute was settled through mediation, with The Honey Baked Ham Co. agreeing to pay the plaintiffs $150,000 to avoid the costs of defending the case.
Bankruptcy History
The Honey Baked Ham Co. has no bankruptcy information required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, HoneyBaked Ham Co. franchisees must provide written notice of their intent to renew between six and twelve months before the initial term expires. At the time of notice and through the expiration of the term, the franchisee must not be in default of any agreements with The Honey Baked Ham Co. or its affiliates, and must have substantially complied with all terms. Franchisees must sign the then-current form of Renewal Franchise Agreement, which may include different terms such as higher royalty or advertising fees, and a general release of claims against The Honey Baked Ham Co. They must also confirm their right to occupy the store premises or secure an acceptable alternative site, perform any required remodeling or redecoration to meet current brand standards, and pay a $7,500 renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, The Honey Baked Ham Co. provides franchisees with demographic data for site selection, reviews lease agreements, offers prototypical architectural plans and specifications, and assists with site plan reviews for conformity. It also provides an initial training program for the franchisee and their Store Operator, opening assistance including promotional programs, and electronic access to the Franchise Operations Manual. After opening, The Honey Baked Ham Co. provides ongoing support through merchandising, marketing, and operational advice, periodic consultations (via visits, phone, newsletters, or bulletins), bulletins and reports on company plans, and other resources. The franchisor may revise the Franchise Operations Manual and offer guidance on pricing. They also inspect store operations and facilities, approve and test suppliers for various products, and designate suppliers for specialty hams and turkey breasts. Upon request and availability, on-site training can be provided, and additional training programs and conferences may be offered and required.
Initial Training Hours
212
Training Location
The initial training for The Honey Baked Ham Co. franchisees includes a combination of in-person onboarding at the Customer Support Center in Alpharetta, Georgia, 15 days of hands-on training at a certified HoneyBaked Ham training store located across the country, and a 7-day on-site pre-opening training period at the franchisee's own store location.
Ongoing Support
After opening, The Honey Baked Ham Co. franchisees receive periodic continuing individual or group advice, consultation, and assistance through personal visits, telephone, newsletters, or bulletins. The franchisor also provides bulletins, brochures, and reports regarding its plans and activities, and develops other resources for franchisees. The Honey Baked Ham Co. reserves the right to revise the Franchise Operations Manual and inspect store operations. Upon request and availability, on-site training for the franchisee, Store Operator, and management personnel can be provided (with associated fees). Additionally, The Honey Baked Ham Co. offers continuing education opportunities throughout the year, including webinars on various topics relevant to store operations, and may require attendance at additional training programs and conferences, for which fees and travel expenses apply.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Absentee Allowed
Territory Type
Protected
Territory Size Requirements
The Honey Baked Ham Co. defines its Development Areas through mutual agreement with the developer, taking into account the density of the area and the number of stores to be opened. These areas can be described using specific street boundaries, county lines, state lines, municipal boundaries, or railroad tracks, ranging in size from a portion of a metropolitan area to a city or a county. For individual stores, The Honey Baked Ham Co. negotiates a 'Protected Territory' around the designated store location. The extent of this Protected Territory is determined by considering factors such as traffic patterns, demographics, the location of competitors' units, existing HoneyBaked Stores, and potential future store locations in adjacent territories.
Staffing Notes
The Honey Baked Ham Co. Store locations require a competent, conscientious, and trained staff to promptly service customers, including specific positions and minimum staffing levels established in the Franchise Operations Manual. The Store Operator and staff must maintain good customer relations, provide competent, prompt, courteous, and knowledgeable service, and adhere to dress code, cleanliness, and sanitation standards. Employees are required to wear HBH-approved apparel. The Store Operator is solely responsible for all employment decisions, including hiring, firing, training, supervision, and discipline of employees.