In this FDD Talk post, you’ll learn the following:
- Section I – Background information on The HoneyBaked Ham Co. franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The HoneyBaked Ham Co. franchise, based on Item 7 of the company’s 2019 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The HoneyBaked Ham Co. franchise, based on Items 5 and 6 of the company’s 2019 FDD
- Section IV – Number of franchised and company-owned The HoneyBaked Ham Co. outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of The HoneyBaked Ham Co.’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average net sales for the 197 franchised HoneyBaked Ham Stores that were in operation for three years through the end of the company’s last fiscal year, which included the period from September 25, 2017 to September 30, 2018
- 2017 average net revenue, cost of goods sold, gross profit, hourly labor costs, and store operating profit after COGS and hourly labor for the 88 franchised HoneyBaked Ham Stores that were open during the entire period from January 1, 2017 to December 31, 2017 and that provided year-end profit and loss statements to the franchisor on its standardized form for this period
Section I – Background Information
19 Things You Need to Know About The HoneyBaked Ham Co. Franchise
Launches Refreshed Branding
1. At the end of August 2018, The HoneyBaked Ham Co. announced that after six decades the brand is entering a new era with a total brand refresh, which includes an updated brand identity and new menu innovations. The HoneyBaked Ham Co. unveiled its new look, with a revamped logo and visual identity that speaks to younger consumers while still honoring the company’s heritage.
2. The new branding continues to implement burgundy, while introducing a warm orange. The brand will implement its new logos and color palette across all of its channels, including its website, advertising, merchandising, packaging, uniforms, and more.
3. JoAnn Herold, chief marketing officer for The HoneyBaked Ham Co., said, “Our new look is fun and contemporary, but it still pays tribute to our brand’s history. It includes a refreshed color palette and a feel of craftsmanship and authenticity that will appeal to our loyal customers and engage a younger generation.”
4. In the same press release, The HoneyBaked Ham Co. said that it also planned to introduce new heat-and-serve side offerings made with premium ingredients in time for the holiday season. Herold added, “It is a very exciting time for the brand. We look forward to continuing to serve our customers as the exclusive provider of the signature spiral sliced Honey Baked Ham® while also providing them with new menu offerings in the coming months.”
5. The new items launched in Fall 2018 included Loaded Smashed Potatoes and Tuscan-Style Broccoli. Additionally, HoneyBaked had also been working with culinary experts to develop new recipes for the company’s already popular side dishes, such as Cheesy Potatoes Au Gratin, Creamy Russet Mashed Potatoes, Maple Sweet Potato Soufflé, Roasted Turkey Gravy, Green Bean Casserole, Country Cornbread Stuffing, Double Cheddar Macaroni & Cheese, and Cinnamon Apples. The HoneyBaked Ham Co. also began testing a new lunch and catering menu in select Atlanta locations in late 2018.
6. In addition to all of the new food items, The HoneyBaked Ham Co. also introduced its new and improved packaging that utilizes more sustainable materials. All of the brand’s new frozen sides will be packaged in a paper board tray that is certified by both the Sustainable Forest Initiative (SFI) as well as the Forest Stewardship Council (FSC).
7. According to Herold, “Our brand has an incredible heritage and, over the years, has provided special traditions for families across the country. We are proud to remain a trusted, cornerstone brand, while also designing a new look and expanded menu for our growing base of customers.”
Makes Donation to TSA Shortly After Government Shutdown Ended
8. At the beginning of February 2019, The HoneyBaked Ham Co. donated 700 boxed lunches to Transportation Security Administration (TSA) workers at the Atlanta airport, who processed a record number of passengers following the Super Bowl. Less than two weeks after the end of the government shutdown, TSA agents at Hartsfield-Jackson International Airport handled over 100,000 passengers going through the airport on the Monday morning following the Super Bowl. This was approximately 40,000 more passengers than the airport normally sees on a weekday.
9. The HoneyBaked Ham Co., which is headquartered in Atlanta, worked with two of their local stores to provide the 700 boxed lunches. Each lunch included either a ham or turkey sandwich, chips, a pickle spear, and a cookie. The large order was delivered to the airport early Monday morning, to be passed out to workers throughout the day.
10. JoAnn Herold, chief marketing officer for The HoneyBaked Ham Co., said, “We are so proud of our hometown Atlanta for hosting an awesome game day this past weekend, and we wanted to do a little something special for the TSA workers at Hartsfield-Jackson who work so hard every day. Even though the government shutdown ended a little over a week ago, we know it may take a while for things to return to normal, so we wanted to show our thanks to these employees who work tirelessly at their jobs, no matter the circumstance.”
Offers Free Kits to Help America’s Worst Cooks During the Holiday Season
11. In mid-December 2018, The HoneyBaked Ham Co. announced that it was giving away Hamergency Tool Kits to those who need a little help in the kitchen. According to the company, the tool kits were designed “to help cover up the worst holiday cooking fails, glaze the house with a sweet aroma, heal burnt hands, and dry tears.”
12. Each Hamergency Kit included a variety of items designed to salvage any cooking catastrophe, including a Honey Baked Ham scented candle to mask the smell of burnt food; a toy water gun shaped like a fire extinguisher; fire resistant oven mitts; a first aid kit that includes burn cream; a pack of tissues; and an insulated wine tumbler.
13. The HoneyBaked Ham Co. had over 100 kits to give away during the holidays. To enter to win a Hamergency Kit, customers only had to visit HoneyBaked’s website and submit their own cooking horror stories. The brand randomly selected winners each day until supplies lasted.
14. JoAnn Herold, chief marketing officer for The HoneyBaked Ham Co., said, “Serving a Honey Baked Ham ensures a perfect meal, but this year we want our customers to have a perfect holiday experience even if they decide to take a chance and cook dinner themselves. We know mistakes happen, and we take Hamergencies very seriously. This kit will ease the pain of even the worst kitchen disaster.”
15. The HoneyBaked Ham Co. was founded in 1957 by Harry J. Hoenselaar in Detroit, Michigan. Hoenselaar had been working as a salesman for William Hubenet at the original HoneyBaked Ham Co. In 1936, Hoenselaar built the prototype for what would become the first meat spiral-slicing machine. After filing for a patent in 1944, Hoenselaar failed to find someone to buy his machine. Instead, the widow of Mr. Hubenet said that she would sell The HoneyBaked Ham Co. to Hoenselaar for $500. Hoenselaar took Mrs. Hubenet up on her offer and opened the first HoneyBaked Ham store in October of 1957.
16. In addition to his spiral-slicing machine, Hoenselaar also created a special curing and cooking procedure for the hams, creating the unique taste of the brand’s signature hams. The Honey Baked Hams also had a sweet, crunchy glaze, which made them the perfect centerpiece for family dinners.
17. Hoenselaar’s HoneyBaked Ham Co. was an immediate success and the brand has continued to grow since then. Franchising started in 1998 and there are now company-owned and franchised locations across the United States. The HoneyBaked Ham Co. is still owned by members of the Hoenselaar family.
18. The HoneyBaked Ham Co. also sells its products in grocery stores throughout the country. Additionally, The HoneyBaked Ham Co. now sells a wide variety of products besides ham, including turkey, beef, pork, and desserts.
Entrepreneur’s Franchise 500
19. The HoneyBaked Ham Co. ranked No. 117 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of The HoneyBaked Ham Co. franchise costs, based on Item 7 of the company’s 2019 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on The HoneyBaked Ham Co.’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 192
- Outlets at the End of the Year: 202
- Net Change: +10
- Outlets at the Start of the Year: 202
- Outlets at the End of the Year: 208
- Net Change: +6
- Outlets at the Start of the Year: 208
- Outlets at the End of the Year: 212
- Net Change: +4
- Outlets at the Start of the Year: 188
- Outlets at the End of the Year: 187
- Net Change: -1
- Outlets at the Start of the Year: 187
- Outlets at the End of the Year: 198
- Net Change: +11
- Outlets at the Start of the Year: 198
- Outlets at the End of the Year: 201
- Net Change: +3
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
Part 1 – Net Sales of 197 Franchised HoneyBaked Stores Open At Least Three Years for 2018 Fiscal Year
- Part 1 displays the average and median net sales of 197 franchised HoneyBaked Stores that were in operation for three years through the end of the company’s last fiscal year, which included the period from September 25, 2017 to September 30, 2018.
- Fifteen franchised HoneyBaked Stores were excluded from this data because they were not open at least three full years.
- The franchised store information is based on sales reports from the company’s Customer Management System or POS system. The franchisor has not audited or verified this information.