Final answer:
The part of the sentence that should be hyphenated is "family owned"
Step-by-step explanation:
The part of the sentence that should be hyphenated is "family owned". When two words work together to describe a noun, they are called compound adjectives and usually need to be hyphenated. In this case, "family owned" describes the shop, so it should be hyphenated as "family-owned". The other phrases in the sentence, such as "next door", "specially made", and "chocolate covered" do not need hyphens.
Learn more about Hyphenation in sentences