The Honey Baked Ham Co. Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Honey Baked Ham Co. is a specialty-food franchise selling its signature spiral-sliced, glazed hams, turkey, and heat-and-serve sides. Franchisees run retail stores driven by holiday peaks plus year-round catering and lunch offerings.
FranchiseVerdict summary · 2026
A The Honey Baked Ham Co. franchise requires a total initial investment of $514K – $830K, including a $5K – $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $984K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $514K – $830K
- 78th pct Service Resta…
- Avg gross sales
- $984K
- Net sales18th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 448
- 88th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $514K – $830K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $984K/year (median $923K), with an estimated 9% cash-on-cash return (based on EBITDA $106,752 / 11.1%).
- RISKVerdict A (Strongest tier), verdict score 81/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The HBH Franchise Company, LLC
- Parent company
- The Franchise Holding Company, LLC (FHC)
- Ultimate parent
- HBH Ultimate Holdings, LP (controlled by Garnett Station Partners, LLC)
- Predecessor
- was The Habit Restaurants
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- James Dinkins
- Incorporated in
- Georgia
- HQ
- 3875 Mansell Road, Alpharetta, Georgia 30022-1532
- Auditor
- Windham Brannon, LLC
- Audited financials
- Franchisor revenue
- $21.8M
- vs $22.2M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- The Honey Baked Ham Company
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- James Dinkins
- Headquarters
- GA
- Founded
- 1998
- FDD year
- 2026
- States available
- 35
Can you afford it, and what does the money buy?
Entry cost is about average for a quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $25K | $50K |
| Equipment, build-out, other | $469K | $760K |
| Total initial investment | $514K | $830K |
Source: The Honey Baked Ham Co. 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $514K – $830K
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $50K
- Middle of category vs category
- Franchise fee
- $5K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.3%
- typical 3–5%
- Total fee load
- 9.3%
- vs 9–13% typical
- Payback period
- 11.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% |
| Marketing / ad fund | 3.3% of net sales |
| Technology fee | $152 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $15K – $20K |
| Total fee load | 9.3% of rev |
What do units actually make?
Average unit sales run 15% below the quick-service restaurants norm.
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for The Honey Baked Ham Co. until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$709K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $107K as EBITDA $106,752 / 11.1%. This is a disclosed figure, not our estimate — we publish no modelled profit for The Honey Baked Ham Co..
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one The Honey Baked Ham Co. unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported as net sales, not gross sales
- Avg gross sales
- $984K
- Per unit, per year
- Median gross sales
- $923K
- Avg ebitda $106,752 / 11.1%
- $107K
- Reported as EBITDA $106,752 / 11.1% in FDD Item 19
- Cash-on-cash
- 8.7%
- Based on EBITDA $106,752 / 11.1% / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical - average/median net sales by tercile, plus cost/EBITDA breakdown table, for franchised, company-owned, systemwide, and seasonal stores
- Sample size
- 198 outlets
- vs category median 18 · large
- Range (low → high)
- $309K→$2.8M
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 782 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $984K/year in gross sales. Revenue-to-investment ratio: 1.5x.
Fee burden
Total ongoing fee load of 9.3% — above the Quick-Service Restaurants average of 7.9%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.4% 3-year CAGR) with 448 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How The Honey Baked Ham Co. Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 448
- Opened
- 8
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 236
- Corporate units in the system
- % franchised
- 47%
- vs corporate-owned
- Net growth (3-yr)
- +1.4%
- Net unit change over 3 years
- 3-yr CAGR
- +1.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 8
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 8
- Reacquired (3yr)
- 3
- Franchisor bought back
- Termination rate
- 4.3%
- Franchisor-initiated terminations
- Ceased ops
- 0.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 35 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 17
- Loan volume
- $6.9M
- Median loan
- $364K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 0
- Typical loan rate
- 8.3%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- n=12,827 loans
- Jobs supported
- 116
- 1.9 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing The Honey Baked Ham Co. franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Honey Baked Ham Co.'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
4 case reference(s): 0 pending, 1 settled.
Largest disclosed settlement: $100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Windham Brannon, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor total revenue includes royalties/advertising/technology fees ($18,655,000), product sales to franchisees ($2,862,000), and franchise fees ($296,000) for FY2025.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 81 / 100 verdict
- 01HIGH1 concluded litigation: franchisee post-termination suit
- 02MINORNet worth $50.4M, revenue $21.8M, net income $1.3M
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Geographic area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 175,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 1 |
View Item 3 litigation summary
4 case reference(s): 0 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 33 hrs
- On-the-job training
- 158 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- HoneyBaked Proprietary CMS Point-of-Sale System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: HoneyBaked Proprietary CMS Point-of-Sale System
Item 20 · call current owners
Franchisee Contacts
219 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Honey Baked Ham Co. · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Honey Baked Ham Co. franchise?
The total investment to open a The Honey Baked Ham Co. franchise ranges from $514K – $830K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Honey Baked Ham Co. franchise owners earn?
According to Item 19 of the The Honey Baked Ham Co. FDD, the average gross sales per unit is $984K. The median is $923K. Important context: Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the The Honey Baked Ham Co. FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the The Honey Baked Ham Co. FDD and qualifies whose outlets they describe.
What is The Honey Baked Ham Co.'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Honey Baked Ham Co. (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many The Honey Baked Ham Co. franchise locations are there?
As of their most recent FDD filing, The Honey Baked Ham Co. has 448 total units in the United States, including 212 franchised units and 236 company-owned units. 8 new units were opened in the latest reporting year.
Is The Honey Baked Ham Co. a good franchise to buy?
FranchiseVerdict rates The Honey Baked Ham Co. as a A-grade franchise with a verdict score of 81 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.