The HBH Franchise Company, LLC (HoneyBaked Ham)

The franchise fee of $20,000 is significantly lower than the category average of $30,000-$40,000. What specific items or support are included in this fee, and are there additional startup costs not reflected in this figure?

Your ad fund rate of 3.25% exceeds the typical range of 1.5-3.0%. How is this fund allocated, and can you provide documentation of ad spend and ROI for the past 2-3 years?

Investment Cost score is 62, below the typical range of 75. What is the total initial investment required to open a unit, including real estate, equipment, and working capital?

Gross sales figures are substantially above category norms. What factors drive these higher-than-average sales, and which units achieve these figures (company-owned, franchisee-owned, or both)?

Can you provide the detailed Item 19 financial performance statement showing the number of units reporting, their unit type, and performance breakdowns by location age and size?

One litigation case was initiated against the franchisor in the past 3 years. What was the nature of this case, its current status, and final resolution?

The termination clause includes 12 non-curable defaults. Can you provide examples of actual non-curable defaults that have led to terminations, and what disputes or misunderstandings have arisen?

Personal guarantees are required from all owners with 10% or greater equity interest. Are spouses automatically required to sign guarantees, and what happens to personal assets if the franchise fails?

Renewal requires signing the then-current franchise agreement. How significantly have terms changed for franchisees renewing in recent years, and what percentage of franchisees have renewed versus exited?

What is the actual total cost of ownership over a 10-year initial term, including all fees, royalties, ad fund, and the renewal fee of $10,000?

Four units closed in 2023 and another 4-5 ceased operations (closed or 'other'). Why did these units close, and were any franchisor-related (operational support, territory disputes)?

Transfer rate is 3.8% annually. What approval process and fees apply to transfers, and how many transfer requests have been denied in the past 3 years?

What is included in the Support & Training score of 100? Can you detail the length and content of initial training, ongoing support resources, and technology platform provided?

How is the exclusive territory defined (by geography, demographics, sales radius), and what happens if a new unit opens nearby or if the franchisor opens a company-owned location in the territory?

What happens to accumulated goodwill if a unit is terminated versus transferred? Are there specific conditions for maintaining the business sale value after franchise term expires?

The non-compete clause is 2 years/15 miles. How is this enforced, and have there been disputes with exiting franchisees who wanted to continue in the same business nearby?

Can you provide a 5-year financial projection for a typical new unit including startup costs, annual revenues, operating expenses, and estimated ROI?

What percentage of franchisees achieve the median gross sales figure of $1,235,325, and what is the breakdown by unit age, location type, and franchisee experience?

Are there any class action suits or regulatory complaints filed against the franchisor in the past 5 years that are not reflected in the litigation data?

What marketing and operational support is provided to ensure new units reach the reported average sales levels, and what happens if a unit significantly underperforms?