FDD Talk Daily: Average Net Sales and Expense Data of Affiliate-Owned HoneyBaked Ham Co. and Cafe Stores

Highlights of HoneyBaked Ham’s Item 19 Financial Performance Representations (2012 FDD) – Part 2

Part II – Net Sales, Labor, and Cost of Goods Sold Data of 92 Stores Operated by HB-Georgia for More Than Five Years for 2011 Fiscal Year

• This section presents net sales, labor, and cost of goods sold data for the period from September 26, 2010 to September 25, 2011 of 92 Retail Stores operated by the franchisor’s affiliate, HB-Georgia, that have been open for at least five years.

• There are no Retail Stores with sales below $500,000.

• This section does not include net sales, labor, and cost of goods sold data related to (1) franchised HoneyBaked Stores; (2) 11 Retail Stores operated by HB-Georgia that have not been open for at least five years; and (3) 147 Retail Stores operated by licensees of Limited Partnership other than HB-Georgia.

• The expense data presented in this section relates only to labor and cost of goods sold for the HB-Georgia Retail Stores. The franchisor has not included operating costs, occupancy costs, or other costs and expenses for the HB-Georgia Retail Stores; nor any expense data related to franchised HoneyBaked Stores.

• Therefore, this financial performance representation does not reflect all costs and expenses that must be deducted from the net sales figures to obtain your net income or profit.

Net Sales Data of 92 Stores Operated by HB-Georgia for More Than Five Years for 2011 Fiscal Year