Honey Baked Ham
Honey Baked Ham franchises operate retail stores selling hams, turkeys, sandwiches, and salads under the 'The Honey Baked Ham Co.' name. Known for specialty ham products, this franchise operates in the food service industry.
Honey Baked Ham franchise FAQ
How much does it cost to open one — the total initial investment?
This isn't specified in the excerpts. The provided FDD excerpts cover details such as rent, additional funds needed for operating expenses, training costs, and the cost of computer hardware, software, and CMS Point-of-Sale System. However, they do not provide a comprehensive breakdown or total initial investment figure.
What is the initial franchise fee?
The initial franchise fee is $15,000. This amount is fully earned upon payment, is not refundable, and cannot be credited against other fees [p.10].
What are the ongoing royalty and advertising fees?
The ongoing royalty rates generally range from 5.5% to 6% of monthly net sales of the franchise. Advertising fees range from 2% to 3.25% of the unit's net sales. As of July 2023, locations in California and new contracts require a minimum contribution of 3.25%. [p.214, p.215]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement lasts for an unspecified term, after which you have the option to renew it. Specifically, if you meet the conditions outlined in Section 3.2 [p.95], you can sign a Renewal Franchise Agreement for a five-year First Renewal Term, and potentially another five-year Second Renewal Term [p.95].
Can I sell or transfer my franchise, and what does that require?
Yes, you can sell or transfer your franchise, but it requires notification and approval from HBH. You must provide a Transfer Notice at least 60 days before the proposed sale, assignment, or transfer, pay the applicable transfer fee, and submit all requested information to HBH [p.77, p.125]. HBH will then decide whether to approve the transfer based on various factors deemed relevant by them [p.77, p.125].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failing to cure such failure after being given written notice and a reasonable opportunity (no more than 30 days) to do so. [p.142]
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not get an exclusive or protected territory. According to [p.36] and [p.96], your franchise is non-exclusive, meaning other franchisees can operate within your designated area, and you may face competition from HBH-owned outlets or other channels controlled by the company. [p.96] specifically states that while HBH will not operate another store in your protected territory during the term of the agreement, you have no exclusive territorial rights to exclude, control, or impose conditions on the location or development of future stores.
What training and ongoing support does the franchisor provide?
The franchisor provides a comprehensive initial training program broken into three phases, including in-store hands-on training, pre-opening training, and additional training programs throughout the year on various relevant topics. Ongoing support includes webinars and may involve additional training sessions at headquarters or other locations, with costs potentially borne by the franchisee for travel and living expenses [p.31].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, the number of franchised HoneyBaked Stores is not directly stated. However, it can be inferred that as of September 29, 2024, there were approximately 188 franchised stores during the franchisee's fiscal year, considering Table No. 1 [p.46] includes data from 188 franchised HoneyBaked Stores. Regarding closures and terminations, 7 stores permanently closed, and some were acquired by an affiliate, but specific numbers for terminated or cancelled franchises are not provided in the excerpts. For precise figures, you would need to review Exhibit J attached as of September 29, 2024 [p.57].
Does the franchisor share any financial performance or earnings information?
Yes, the franchisor can provide financial performance information under certain conditions. According to [p.46], the franchisor is permitted to include actual records of existing outlets if requested by a franchisee considering a purchase. Additionally, the franchisor may supplement the information provided in Item 19 with possible performance data at specific locations or under particular circumstances. However, other than these specified instances, no financial performance representations are made [p.48].
What am I restricted to selling, and where must I buy supplies?
You are required to offer and sell all products and services specified by the franchisor, including specialty hams and turkeys [p.40]. You must purchase all inventory, including food and non-food items, from suppliers designated or approved in advance by the franchisor [p.21]. This includes items such as condiments, side items, premium desserts, produce, cleaning materials, packaged goods, and beverage products. If you wish to use a supplier not previously approved, you must submit a written request for approval [p.21].