HoneyBaked Ham Franchise Costs, Fees & FDD

Year Business Began: 1957

Franchising Since: 1998

Headquarters: Alpharetta, Georgia

Estimated Number of Units: 450

Franchise Description: The HBH Franchise Company, LLC is the franchisor. The franchisee will operate a retail store under the name “The Honey Baked Ham Co.” that specializes in the sale of hams, turkeys and other products and serves sandwiches, salads, beverages and other menu items.
Training Overview: A minimum of two individuals, including the franchisee (or one of the owners if the franchisee is a business entity) and the store operator (unless the franchisee or one of the franchise owners will serve as the store operator) must complete the training program to the franchisor’s satisfaction by a date that the franchisor specifies. The first phase of training includes the completion of virtual learning via HoneyBaked Learning, the franchisor’s learning management system, and a 15-day in-store and hands-on training program. The second phase of training includes three days of in-person onboarding and virtual learning. The third phase of training consists of on-site pre-opening training leading up to the store opening where the franchisee and the store operator will train and prepare the store for opening day. Franchisees must complete the ServSafe program, which is the franchisor’s approved food safety and sanitation program, prior to opening their store. In addition to the new owner and pre-opening training program, the franchisor offers continuing education opportunities throughout the year. Franchisees may be required to attend conferences, including the franchisor’s franchise convention.

Territory Granted: Franchisees will receive the right to operate a HoneyBaked store at, and only at, the designated location specified in the Franchise Agreement. Franchisees will receive a designated geographic area around the store (protected territory) that the franchisor and franchisee will negotiate before a Franchise Agreement is signed. With the exception of any HoneyBaked stores conducting business as of the effective date of the Franchise Agreement, if franchisees remain in compliance with the terms of the Franchise Agreement, the franchisor will not operate or grant a franchise for the operation of a HoneyBaked store within the protected territory.

Obligations and Restrictions: The franchisor does not require that franchisees personally participate in the direct operation of their store; however, it strongly encourages them to do so. Franchisees (or if they are an entity, one of the owners) may serve as the store’s operator, managing the day-to-day operations in the store. Or franchisees may designate a non-owner to serve as the store operator. The store operator will have full control over and must devote his or her best efforts to supervising the day-to-day operation of the store. The franchisor requires franchisees to offer and sell all products and services that it specifies, including specialty hams and turkeys. Franchisees may not offer any products or services without first obtaining consent. Franchisees must discontinue selling any products or services that the franchisor advises franchisees are disapproved.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees wish to do so, and they satisfy the required pre-conditions to renewal, the franchisor will offer the right to renew the franchise for two additional renewal terms of five years each.

Financial Assistance: The franchisor does not offer any direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Development Fee	$20,000	$20,000
Franchise Fee	$20,000	$20,000
Travel and Living Expenses while Training	$2,000	$7,500
Real Estate and Improvements	$225,000	$400,000
Architectural	$6,500	$17,500
Equipment, Décor and Fixtures	$141,000	$191,000
Rent	$6,000	$30,000
Security Deposit	$5,000	$13,000
Other Deposits and Licenses	$2,700	$4,600
Signs	$5,000	$10,000
Opening Advertising	$20,000	$25,000
Opening Inventory, Products, Supplies, Smallwares and Training Materials	$15,000	$20,000
CMS/ Point of Sale System	$21,000	$21,000
Additional Funds	$25,000	$50,000
ESTIMATED TOTAL	$514,200	$829,600

 
Other Fees

Type of Fee	Amount
Royalty	6% of net sales.
Monthly Marketing Obligation	Up to 5% of net sales. Currently 4.25% of net sales.
Advertising Deficiencies	Amount of local advertising deficiency.
Additional Training	The franchisor’s reasonable costs of training program.
Advertising Materials	The franchisor’s costs and expenses.
Convention Registration Fees	Currently $300 per attendee.
Appraisal Fee	Approximately $2,500 to $7,500.
Audit Expenses	Reasonable costs.
CMS Point-of-Sale Support and Licensing Fee	Currently, $2,400 per year for basic support and upgrades for up to 4 registers.
Conferences	The franchisor’s reasonable costs and expenses of the conference.
Costs to Cure Defaults	Reasonable costs.
Customer Loyalty Program	Participation costs charged by the franchisor’s service provider, currently $96/store.
Customer Satisfaction Programs	Up to $100 per incident.
Cybersource Fee	Monthly fixed cost: $34/ month. Variable costs: $0.22 - $0.29 / transaction.
Damages for Enforcing Option to Purchase Store	Approximately $5,000 to $20,000.
Gift Card Transaction Fees	Currently, 9% of the gift card face value for certain gift cards sold at third party vendor locations.
Ham Override	Currently $0.25/per pound.
Ham Change Order Fee	$100
Indemnification	Any losses.
Inspection and Testing Fee	Costs of inspecting the supplier’s facilities or testing samples.
Insurance Reimbursement	Any cost and premiums incurred.
Interest and Late Fee	If any payment is more than 30 days late, then it will bear interest at the rate of 1.5% per month or the maximum rate permitted by law, whichever is less, plus a $100 late fee.
Non-Compliance Fee	Up to $1,000 for each default and for each week, or portion thereof, that the default continues.
Online Catering Program	Currently, $0.
On-site Training	Then-current per diem training fee, currently $900, and travel costs and expenses.
QA Audit	Approximately $200 to $275 per inspection.
Reimbursement of Costs and Expenses	The franchisor’s costs and expenses, including attorneys’ fees.
Reimbursement of Costs and Expenses Regarding Modifications or Supplementations to Franchise Agreement	The franchisor’s costs and expenses (including attorneys’ fees).
Relocation Fee	$10,000
Renewal Fee	$10,000
Technology Fee	$152 per month.
Transfer Fee	$10,000

The above information has been compiled from the FDD of HoneyBaked Ham Co. Year of FDD: 2026.
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