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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
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)
Franchise Stats
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 to Other General Retail Franchises
Key Insights
- Higher investment than 86% of General Retail franchises
- #1 largest franchise system in General Retail
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
ACE HARDWARE Current | $604K - $2.0M | $5K | N/A | 4,885 |
| DO IT BEST CORP. | $565K - $1.3M | $9K | N/A | 3,407 |
| 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 | $502K - $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
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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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)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a ACE HARDWARE franchise?
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.
How much revenue does a ACE HARDWARE franchise make?
According to the 2025 FDD, the average gross revenue for a ACE HARDWARE franchise is $4,036,659.16.
How many ACE HARDWARE franchise locations are there?
As of the 2025 FDD, ACE HARDWARE has 4,885 franchise locations. The company has been franchising since 1928.
Can you get an SBA loan for a ACE HARDWARE franchise?
Yes, SBA loans are available for ACE HARDWARE franchises. Historical data shows 606 SBA 7(a) loans have been approved for ACE HARDWARE franchisees, with an average loan amount of $776,841. The historical default rate is 2.5%.
Is ACE HARDWARE a good franchise to buy?
ACE HARDWARE shows several positive indicators: established brand with 4,885+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in ACE HARDWARE?
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