In this FDD Talk post, you’ll learn the following:

• Section I – Background information on The Honey Baked Ham Company franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for The Honey Baked Ham Company franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Honey Baked Ham Company franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned The Honey Baked Ham Company outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of The Honey Baked Ham Company’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, high, and low net sales for the 198 franchised Honey Baked Ham Company Stores that were in operation for three years through the end of the company’s last fiscal year, which included the period from October 1, 2018 to September 29, 2019

• 2018 average net sales, cost of goods sold, gross profit, hourly labor costs, and store operating profit after COGS and hourly labor for the 143 franchised Honey Baked Ham Company Stores that were open during the entire period from January 1, 2018 to December 31, 2018 and that provided year-end profit and loss statements to the franchisor on its standardized form for this period

Section I – Background Information

18 Things You Need to Know About The Honey Baked Ham Company Franchise

Introduces New Store Design

1.  After spending the last few years unveiling a new brand identity, which features a revamped logo and new burgundy and warm orange color palette, The Honey Baked Ham Company announced its plans to launch a major remodeling program across its entire network of stores, beginning in late October 2019. In addition to providing an updated look to HoneyBaked’s retail stores, the initiative also aims to provide an enhanced customer experience.

2.  HoneyBaked’s first renovated store to feature the new design opened in Alpharetta, Georgia on October 28, with a second planned soon thereafter in the Perimeter Center area of Atlanta. The Honey Baked Ham Company plans to remodel 10-20 retail stores per year.

3.  JoAnn Herold, chief marketing officer of The Honey Baked Ham Company, said, “After 62 great years, it was time for HoneyBaked to modernize itself to appeal to today’s consumers. This modernization started with an updated brand identity, manifesting itself across our website, advertising creative, merchandising, packaging, uniforms and now, our retail stores. Because consumers have responded really well to our new brand identity, we believe the implementation of this new retail store design could have significant impact on our business, potentially resulting in a 5-7 percent increase in sales for renovated stores.”

4.  The new retail store design is intended to reinforce The Honey Baked Ham Company’s premium offering of ham, turkey, sides, and lunch by aligning the stores with the attention to detail and handcrafted care that consumers often associate with their neighborhood butcher shop and deli. Many of the design attributes of the new stores will reinforce this desired connection.

5.  Incorporated into the new design will be an extensive exterior remodel including new signage, relocated entrance doors, new building color and awnings featuring the new branded color palette, and upgraded lighting, as well as landscaping. Interior enhancements will feature a handcrafted look including wood tones and subway tile, updated signage, enhanced merchandising area, and the ability to increase or decrease seating based on peak traffic times.

6.  Additionally, the store design will leverage technology and layout to improve the customer experience during seasonal times, something the brand made a focal point during planning. These features include a more efficient ordering process, ability to order online and pick-up in store, as well as a separate “pick-up” area for carry-out orders.

7.  According to Dan McAleenan, senior vice president of operations for The Honey Baked Ham Company, “We’re extremely energized by the new retail store design and the positive impact it’ll have on the customer experience. Bringing into our retail stores the evolved brand identity, in addition to our new technological and layout improvements, will further allow us to deliver on the level of service our customers have come to expect from HoneyBaked.”

Releases Holiday-Themed ‘Hamjamas’ Pajamas

8.  At the beginning of December 2019, The Honey Baked Ham Company released “Hamjamas” to celebrate the holiday season. The Hamjamas are onesies featuring a HoneyBaked Ham-inspired holiday theme, including seasonal colors, festive “lights”, and decorative pig tails. Acknowledging the holiday season has become a time for many families to wear matching pajamas, the brand created the ultimate holiday pajamas for the entire family to love and wear.

9.  Hamjamas were available in adult and kids sizes and the festive design was perfect for those who would gather around the table with HoneyBaked’s signature ham, turkey breast, or heat and serve side dishes. The Hamjamas were available to purchase at The Honey Baked Ham Company’s website in adult sizes for $25 and in kids sizes for $20.

10.  JoAnn Herold, chief marketing officer of The Honey Baked Ham Company, said, “HoneyBaked is always looking for fun ways to make the holidays more special for our fans. Whether people are capturing festive photos or enjoying a meal with family and friends, they can now do so in comfort and style by wearing our hamjamas.”

Introduces New Lunch Menu Items

11.  In early October 2019, The Honey Baked Ham Company announced new additions to its lunch menu. Two new sandwiches, The HoneyBaked and the Roasted Tomato & Cheddar, a new salad, and kettle-cooked potato chips are now available at all locations.

12.  Debbie Domer, senior director of brand and integrated marketing for The Honey Baked Ham Company, said, “Menu innovation is a key part of our brand revitalization. We’re excited to introduce these new menu items made with premium ingredients and contemporary flavors, while showcasing the signature meats that made us famous – our delicious ham and turkey breast.”

13.  Both The HoneyBaked and the Roasted Tomato & Cheddar sandwiches are served on toasted ciabatta bread. The HoneyBaked is the new signature ham sandwich featuring HoneyBaked Ham topped with sweet honey glaze, Swiss cheese, house pickles, and crispy onions. “The sweet honey glaze sauce on this sandwich was specially formulated to recreate the taste experience of the sweet glaze topping found on our ham,” said Domer.

14.  The Roasted Tomato & Cheddar sandwich features roasted red tomatoes, shredded cheddar cheese, pickled red onions, and crispy onions topped with BBQ sauce. The Cobb Salad is HoneyBaked’s unique twist on a classic salad. It is prepared on a bed of spring mix and chopped green leaf lettuce, topped with HoneyBaked Ham, shredded cheddar cheese, roasted red tomatoes, pickled onions, cornbread croutons, chopped bacon, and sliced hard boiled egg.

15.  In addition, HoneyBaked’s new partnership with Deep River Snacks will allow customers to enjoy delicious deli-style kettle cooked potato chips. Deep River Snacks’ chips are made with natural ingredients, and are certified gluten-free and free from GMO ingredients.

Company History

16.  The Honey Baked Ham Company was founded in 1957 by Harry J. Hoenselaar in Detroit, Michigan. A few years earlier, Hoenselaar had developed and patented a special spiral-slicing machine and used it on his own hams. Hoenselaar also created a special curing and cooking process that is still used by The Honey Baked Ham Company today. Before starting his own store, Hoenselaar sold his hams to drugstores in Detroit and taught lunch counter clerks the proper procedure for slicing his hams for sandwiches.

17.  Since Hoenselaar’s hams made beautiful centerpieces and were easy to serve, The Honey Baked Ham Company was a success from the very beginning. Over the next few years, The Honey Baked Ham Company grew around the United States. Hoenselaar divided the country into four territories and assigned each region to one of his four daughters. Today, The Honey Baked Ham Company is still run by the Hoenselaar family and there are company-owned and franchised locations all around the U.S.

Entrepreneur’s Franchise 500

18.  The Honey Baked Ham Company ranked No. 173 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of The Honey Baked Ham Company franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on The Honey Baked Ham Company’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  202
• Outlets at the End of the Year:  208
• Net Change:  +6

2018

• Outlets at the Start of the Year:  208
• Outlets at the End of the Year:  212
• Net Change:  +4

2019

• Outlets at the Start of the Year:  212
• Outlets at the End of the Year:  212
• Net Change:  0

Company-Owned

2017

• Outlets at the Start of the Year:  187
• Outlets at the End of the Year:  198
• Net Change:  +11

2018

• Outlets at the Start of the Year:  198
• Outlets at the End of the Year:  201
• Net Change:  +3

2019

• Outlets at the Start of the Year:  201
• Outlets at the End of the Year:  202
• Net Change:  +1

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

Part 1 – Net Sales of 198 Franchised Stores Open At Least Three Years for 2019 Fiscal Year

• Part 1 displays the average and median Net Sales of 198 franchised Stores that were in operation for three years through the end of the company’s last fiscal year, which included the period from October 1, 2018 to September 29, 2019.

• Seventeen franchised Stores were excluded from this data because they were not open at least three full years.

• The franchised Store information in Part 1 is based on sales reports received from the company’s Customer Management System or POS system. The franchisor has not audited or verified this information.

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