Ham Franchise Hopes To Land Here; Is There A Taker?

LEBANON PA (Friday, June 06, 2008) - A Michigan-based specialty-food retailer, HoneyBaked Ham, is seeking a local franchisee.

"We've identified Lebanon, Lancaster, Reading and markets around Philadelphia," said Jim Squire, HoneyBaked Ham's director of franchise development.

The closest of HoneyBaked Ham's 12 Pennsylvania stores is in Mechanicsburg.

"The company did not franchise for most of its 50 years," Squire said. "Our founder (Harry Hoenselaar) invented a slicing machine that revolutionized enjoying ham. He bought a small company in Detroit and put his invention to use."

After Hoenselaar died, his heirs split the U.S. into five territories and began expanding the business, which has grown to almost 400 stores in 37 states. In 1998, HoneyBaked Ham purchased Hickory Ham, a Southeastern-based franchiser, and in 2002 HoneyBaked Ham bought its largest competitor, Heavenly Ham.

Nine of the 12 Pennsylvania stores are company-owned. The other three — in Allentown, State College and Willow Grove — are franchised.

"We are looking for areas with 100,000-plus populations," said Squire, noting Lebanon County's approximate 125,000 residents. "Lebanon fits right in beautifully. It's a nice market."

Unlike most food franchises, HoneyBaked Ham is closed Sundays and operates on a limited schedule, from 10 a.m. to 6 p.m., except around the end-of-year holidays. HoneyBaked's cafes offer signature sandwiches, soups, salads, side dishes and desserts.

"The real attractiveness to a franchisee is quality of life," Squire said, noting the eight-hour business days.

"All of our meats come fully smoked and sliced," he said. "There are no ovens, fryers or grills. When 6 o'clock rolls around, you can head out the door, unless you still have customers in the cafe."

Franchisees are required to have about $350,000, of which $250,000 is for hard costs, which include construction and equipment, Squire said. Most HoneyBaked Ham stores are built in strip shopping centers and are between 1,600 and 2,000 square feet.

Soft costs include a $30,000 franchise fee, $10,000 for advertising and $60,000 in working capital.

"We're very conservative," Squire said, pointing out the requirement for working capital.

Anyone interested in opening a Lebanon County store should call Squire at 678-966-3254 or e-mail him at jsquire@hbham.com.

More information is available at the Web site, http://www.honeybaked.com/franchise.

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