ACE HARDWARE
Ace Hardware Corporation is a retailer-owned cooperative wholesaler of hardware products, paint, and other merchandise, offering memberships and the right to operate branded retail hardware stores (3,000-12,000 sq ft) to independent retailers. Franchisees purchase shares in the cooperative, adhere to operational standards, and receive value-added services including advertising, merchandising assistance, promotional support, store design, training, insurance, and technology. The business model emphasizes cooperative wholesale distribution and branding support, targeting homeowners, DIY enthusiasts, contractors, and general consumers seeking hardware and home improvement supplies.
Franchise Costs
2% brand assessment (of prior year purchases, min $6,270 max $13,600 annually) + $315/mo core retail services + $700/mo POS maintenance + Local Lift Max Assessment ($422-$4,008/mo) + insurance ($208-$2,500/mo)
Financial Performance
Item 19 Financial Performance
Data Based On: 689 participating Ace branded stores open for at least one full year as of December 31, 2023.
* Calculated weighted average gross revenue for all Reporting Stores: (13 units × $1,664,867 + 83 units × $2,254,853 + 343 units × $2,997,732 + 194 units × $5,308,506 + 56 units × $9,185,533) / 689 total units = $4,036,659.16. Median gross revenue, top quartile, and bottom quartile values were not explicitly provided for the entire sample.
Extracted Item 19 Section
How ACE HARDWARE Compares
Key Insights
- Higher investment than 79% of General Retail franchises
- #1 largest franchise system in General Retail
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
ACE HARDWARE Current | $604K – $2.0M | $5K | N/A | 4,885 |
| DO IT BEST CORP. | $853K – $1.6M | $9K | N/A | 3,555 |
| WINDOW WORLD, WORLD OF WINDOWS | $123K – $331K | $45K | N/A | 209 |
| FLEET FEET, FLEET FEET TRIATHLETE | $229K – $545K | $45K | 4.0% | 192 |
| PRETZELMAKER | $392K – $573K | $25K | 7.0% | 129 |
| TECHY | $119K – $400K | $15K | 7.0% | 62 |
General Retail Average 14 franchises | $522K – $1.0M | $108K | 5.7% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 14 General Retail franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+36 more states
SBA Loan History
Historical SBA 7(a) loan data for ACE HARDWARE franchisees (2010 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
5,265 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
5,265 Contacts Available
Unlock all ACE HARDWARE franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Class action by former franchisee alleging violations of the Illinois Franchise Disclosure Act, fraudulent inducement, and fraud.
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a ACE HARDWARE franchise ranges from $603,850 to $2,001,550. This includes a franchise fee of $5,000.
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