The Honey Baked Ham Co Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$581,400 - $876,950
Franchise Fee
$15,000
Total US Locations
439
Business Summary
The Honey Baked Ham Co. operates retail stores that specialize in selling hams, turkeys, and other products. These stores also feature on-site cafés that serve sandwiches, salads, beverages, and other menu items.
Corporate History
The HBH Franchise Company, LLC (HBH) was organized in Georgia on July 8, 1998, and began offering franchises for HoneyBaked Stores on August 5, 1998. HBH operates under the names "HoneyBaked," "The Honey Baked Ham Co.," and "Honey Baked Ham." As of September 29, 2024, HBH had 208 franchised HoneyBaked Stores. While HBH itself does not own any stores, its affiliate, The Honey Baked Ham Company, LLC (HBH Co.), operates 231 company-owned HoneyBaked Stores. HBH Co. acquired the HoneyBaked System and its trademarks from HBH Limited Partnership in May 2015 and licensed HBH to use and grant licenses for the System and Marks to its franchisees.
Financial Overview
Investment Range
$581,400 - $876,950
Franchise Fee (Low)
$15,000
Franchise Fee (High)
$15,000
Royalty %
6%
Marketing %
3.25%
Equipment Costs (Low)
$182,000
Equipment Costs (High)
$216,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Honey Baked Ham Co. maintains positive working capital, with current assets significantly exceeding current liabilities across the last three fiscal years ($43.5 million in 2024, $41.3 million in 2023, and $36.9 million in 2022). The company reported net income of $53,000 in 2024, $1.9 million in 2023, and $4.6 million in 2022, indicating a decrease in profitability over this period. The company guarantees a revolving credit agreement for its parent company, HBHC, which can allow borrowings of up to $80 million from June through December and $30 million from January through May, with outstanding guaranteed amounts of $50.5 million in 2024. The independent auditors have issued an unqualified opinion on the financial statements, with no concerns about the company's ability to continue as a going concern.
Financing Details
The Honey Baked Ham Co. does not offer any direct or indirect financing to its franchisees. It also does not guarantee any franchisee notes, leases, or obligations. Franchisees are responsible for securing their own financing.
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 litigation case. This lawsuit, filed on June 10, 2014, by two former HoneyBaked franchisees, alleged various issues including improper claims of start-up costs and revenues, a substandard site approval, inadequate training, and wrongful refusal to approve a store transfer. The franchisees also claimed issues with territory overlaps. The lawsuit involved twelve counts, such as breach of contract, fraud, and wrongful termination. 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 and time of defending the case. No other litigation is required to be disclosed.
Bankruptcy History
The Honey Baked Ham Co. has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Honey Baked Ham Co. franchisees must provide written notice of their intent to renew between six and twelve months before the initial term expires. They 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 during the franchise period. Franchisees must sign a new renewal franchise agreement, which may have different terms, including potentially higher royalty fees, increased advertising contributions, or a smaller territory. They must also sign a general release of claims against The Honey Baked Ham Co., show they have the right to occupy the store premises (or a suitable alternative), complete any required remodeling, repairs, replacements, and redecoration to meet current brand standards, and pay a renewal fee of $7,500.
Training & Support Program
Franchisor Assistance
The Honey Baked Ham Co. provides various forms of assistance to its franchisees. Before opening, this includes providing demographic data for site selection and reviewing proposed sites and leases. The franchisor also offers prototypical plans for store construction, interior design, and equipment. Initial training is provided for the franchisee and their store operator, with opening assistance from company personnel. After opening, The Honey Baked Ham Co. offers merchandising, marketing, and other operational advice, periodic consultations, and publishes bulletins and reports. The franchisor also inspects store operations, evaluates and approves suppliers, and designates suppliers for specialty hams and turkey breasts. Additional on-site training can be provided upon request (for a fee), and franchisees may be required to attend additional training programs or conferences (also potentially for a fee).
Initial Training Hours
222
Training Location
Alpharetta, GA
Ongoing Support
After opening, Honey Baked Ham Co. franchisees receive ongoing support including merchandising, marketing, and operational data and advice. The franchisor provides periodic individual or group consultations and assistance through personal visits, telephone calls, newsletters, or bulletins. They also publish reports on plans, policies, research, and developments. The franchisor inspects store operations and facilities, evaluates and approves suppliers, and designates sources for specialty hams and turkey breasts. On-site training at the franchisee's store may be provided if requested and personnel are available, for which a per diem fee and travel expenses may be charged. Franchisees may also be required to attend additional training programs and conferences (such as holiday readiness programs) at the franchisor's headquarters or other locations, with reasonable costs for programs, travel, and living expenses borne by the franchisee.
Franchise Requirements
Ideal Candidate Profile
The Honey Baked Ham Co. seeks individuals with the qualifications and interest to develop and operate one or more stores. While the franchisor does not require personal participation in daily operations, it is strongly encouraged. If the owner chooses not to be the Store Operator, they must designate a non-owner who will have full control and dedicate their best efforts to daily supervision. All Store Operators, whether the owner or a designated employee, must successfully complete an approved food safety and sanitation class (like ServSafe) and complete the initial training program. Owners with a 10% or greater equity interest in the franchisee entity must sign a guarantee for the franchisee's performance.
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
Non-Exclusive
Staffing Notes
Honey Baked Ham Co. locations require a competent, conscientious, and trained staff sufficient to service customers promptly, with specific positions and minimum staffing levels to be established in the Franchise Operations Manual (FOM). Franchisees are solely responsible for all employment decisions, including hiring, firing, training, and supervision, and must ensure employees maintain good customer relations and adhere to dress code, cleanliness, and sanitation standards outlined in the FOM. The Store Operator, who can be the franchisee, an owner, or a designated non-owner, must have full control over and devote their best efforts to supervising daily operations and must complete an approved food safety and sanitation class and the initial training program.