Highlights of HoneyBaked Ham’s Item 19 Financial Performance Representations (2012 FDD) – Part 3

Cost of Goods Sold includes HB-Georgia’s total costs for all food and beverage sales as well as the cost of paper and packaging supplies.

HB-Georgia purchases many items used in the operation of Retail Stores under arrangements and contracts that the company negotiates with suppliers and distributors, which may have permitted them to purchase and have those items delivered at a volume discount.

To the extent these purchasing and distribution arrangements are changed, are not available to you, or you have additional transportation costs, then you should expect to experience higher costs.

Since HB-Georgia does not pay a ham override charge, the franchisor has included an additional 2% in the Cost of Goods Sold data presented.

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