The Honey Baked Ham Co.
Bottom line
- Total investment $514K – $830K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.2M). Estimated payback in 6.3 years.
- Rated STRONG with a risk score of 45/100. SBA loan default rate of 0.0% across 28 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one The Honey Baked Ham Co. unit return on the cash you put in?
Unlevered ROIC · per unit
16%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Honey Baked Ham Co. units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$443K
on $2.2M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
Franchisees operate retail locations selling premium honey-baked ham and complementary holiday/specialty meat products, focusing on seasonal peak periods (Thanksgiving, Christmas, Easter) and year-round gourmet offerings. Operations include inventory management, food handling compliance, customer service, and local marketing to drive traffic during high-demand windows.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Mature, slow-growing franchise system with recent litigation history, modest profit margins, and limited financial disclosure—suitable only for operators with deep industry experience and capital reserves.
Score breakdown · what drove the 45 / 100 rating
- 01MINORStagnant unit growth (1.9% YoY) suggests market saturation or system challenges in a mature 448-unit chain
- 02HIGHRecent litigation (settled July 2025) indicates franchisor-franchisee relationship friction and potential operational delays
- 03MINORNet income of $106,752 on $1.27M revenue (8.4% margin) is modest given seasonal business concentration and high initial investment of up to $829,600
- 04HIGHNo Item 19 (going concern = False) limits financial transparency and raises questions about franchisor's willingness to disclose performance data
- 05MINOR6% royalty + seasonal revenue fluctuations create cash flow pressure during off-peak months
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
100 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Honey Baked Ham Co. · FDD (2026) PDF