The Honey Baked Ham Co.^®

Food & Beverage • Year: 2024

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What Is The Honey Baked Ham Co.?

The Honey Baked Ham Co. is a specialty food franchise focused on the retail sale of hams, turkeys and related products and operating on-site cafés that serve sandwiches, salads and beverages. Primary revenue streams come from retail sales of specialty hams and turkeys and from on-site café food and beverage sales, with sales notably affected by seasonal holidays such as Thanksgiving, Christmas and Easter. Stores are typically located in shopping centers, though they may also be freestanding locations.

The Honey Baked Ham Co. Franchise: Pros and Cons

The franchisor's standout strength is a 100 training and support score-well above industry norms-promising faster ramp-up and fewer early operating mistakes, but a top concern is five reacquired outlets, well above typical for Food & Beverage, which suggests higher-than-normal franchisee turnover to investigate.

Pros

The 100 training and support score is well above typical across systems, indicating strong training and field support that should shorten your ramp-up and reduce early operating mistakes.

The $15,000 entry fee is well below what's common in Food & Beverage, leaving you with more cash on hand for build-out and early operating expenses.

Zero government penalties or orders (unusually low for the sector) suggests the franchisor maintains regulatory compliance, reducing regulatory risk for your operation.

Cons

Five reacquired outlets is well above typical for Food & Beverage and primarily reflects franchisees exiting the system, signaling higher-than-normal operator turnover to investigate.

One franchisee-initiated settlement is in the top quarter for Food & Beverage; recurring settlements can indicate ongoing disputes that were resolved before judgment, so expect legal friction that merits due diligence.

230 company-owned units is well above typical for Food & Beverage, meaning the franchisor runs a very large corporate fleet - this may imply less emphasis on expanding the franchise base and could affect territory value and resale dynamics.

Lawsuits & Legal Risk

81/100

NORMAL

The Honey Baked Ham Co. - Part 1 (The Facts): A 2014 dispute alleged misstatements of startup costs and revenues, substandard site approval, inadequate training, denied transfer and territory conflicts; HBH resolved the matter via a $150,000 settlement without admission of liability. Part 2 (The Advice): Review Item 12 territory protections, Item 7/19 earnings and cost disclosures, transfer and training provisions, request site-approval documentation, and interview current franchisees.

Territory Protection

43/100

NORMAL

The Honey Baked Ham Co. grants a negotiated, site-specific protected territory around the franchised store reflecting market density and site-specific rights, with territory contingent on meeting performance quotas and compliance. The franchisor may develop nearby units and sell via e-commerce and other alternative distribution channels within the territory.

Training & Support

100

Excellent

The brand provides a comprehensive 202-hour training curriculum designed to prepare two individuals to manage and operate a franchised location. The program includes on-site launch support for operational readiness; travel and lodging are the franchisee’s responsibility, and certain on-site assistance may be subject to additional fees.

How Much Does It Cost to Open a The Honey Baked Ham Co. Franchise?

Opening a The Honey Baked Ham Co. franchise requires a total initial investment of $448,600 to $858,900, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$448,600

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$858,900

Minimum Investment Breakdown

Franchise Fee$30,000

Real Estate$192,700

Equipment & Assets$161,200

Reserves$50,000

Training$2,000

Other$12,700

Maximum Investment Breakdown

Franchise Fee$30,000

Real Estate$498,500

Equipment & Assets$243,300

Reserves$50,000

Training$7,500

Other$29,600

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do The Honey Baked Ham Co. Franchise Owners Make?

The Honey Baked Ham Co. franchise locations reported average gross sales of $951,245 and median gross sales of $880,776 in 2024, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$951,245

Median Gross Sales:

$880,776

High Gross Sales:

$2,764,727

Low Gross Sales:

$280,086

Sample Size:

203

Percent Attaining Average:

41.4%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Only franchised store performance is reported; average franchised net sales were 951,245 in fiscal 2023 and no company-owned/corporate data is provided for direct comparison.

Performance Variability Analysis: Net sales show wide dispersion (range 280,086 to 2,764,727) with the top third averaging 1,431,797 and the bottom third averaging 555,744, indicating substantial variability likely driven by location and operational factors.

Data Scope and Limitations: The figures are unaudited and expense/P&L detail is limited to 138 franchised stores for calendar 2022 (not 2023), and several stores were excluded, so results may not represent all franchised outlets.

Frequently Asked Questions

Is The Honey Baked Ham Co. a good franchise to own?

Whether The Honey Baked Ham Co. is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: The Honey Baked Ham Co. operates 439 locations, received a legal risk score of 81/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is a The Honey Baked Ham Co. franchise worth the investment?

The value of a The Honey Baked Ham Co. franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $448,600 to $858,900. The Honey Baked Ham Co. disclosed average gross sales of $951,245 in 2024. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

How long does it take to break even with a The Honey Baked Ham Co. franchise?

Break-even timelines for The Honey Baked Ham Co. franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is The Honey Baked Ham Co. a franchise or a corporate-owned business?

As of the 2024 FDD, The Honey Baked Ham Co. operates 209 franchised locations and 230 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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