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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.
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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
Avg. Revenue: $4,036,659
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Unlock financial performance dataACE HARDWARE Franchise Analysis
Ace Hardware's century-old cooperative model stands out in the hardware retail world, where independent owners band together for wholesale power and brand leverage. Item 19 finally pulls back the curtain on franchisee revenues, while a hefty SBA loan history hints at the capital intensity of launching these stores. But with recent legal clouds gathering, does this established giant still deliver reliable returns for newcomers?
Franchising since 1928, Ace has methodically expanded from 4,759 locations in 2023 to 4,885 in 2024—a steady +3% clip that signals resilience in a consolidating retail sector. Projected new units hit 170, outpacing terminations at 112, which keeps system health in positive territory despite some churn. Item 7 lays out the wide initial investment range of $603,850 to $2,001,550 for 3,000-12,000 sq ft stores, reflecting flexibility for urban vs. suburban builds, backed by 606 SBA loans averaging $776,841 and an impressively low 2.5% default rate that underscores franchisee viability.
Item 19 reveals average gross revenues of $4,036,659 per unit, a robust figure fueled by the co-op's merchandising muscle targeting DIYers and contractors. Ongoing fees stack up with a 2% brand assessment (min $6,270, max $13,600 annually on prior purchases), plus $315/month core services, $700/month POS, Local Lift Max ($422-$4,008/month), and insurance ($208-$2,500/month)—potentially 5-10% of sales in total outflows. A class action lawsuit alleging Illinois Franchise Disclosure Act violations, fraud, and inducement flags potential operational or disclosure risks, warranting scrutiny before buying into the co-op share structure.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
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 – $363K | $45K | N/A | 211 |
| FLEET FEET, FLEET FEET TRIATHLETE | $352K – $652K | $45K | 4.0% | 197 |
| PRETZELMAKER | $392K – $573K | $25K | 7.0% | 129 |
| TECHY | $119K – $400K | $15K | 7.0% | 62 |
General Retail Average 14 franchises | $530K – $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
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Unlock location growth dataSBA 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.
606 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
5,265 franchisee contacts on file from official FDD filings.
5,265 Contacts Available
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Unlock contactsDue 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
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Unlock due diligence reportsFrequently 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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