Ace Hardware Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$5,000
Investment required
$116,000-$1,913,000
Royalty fee
n.a.

Ace Hardware: Leading the Way in Community-Focused Home Improvement

Ace Hardware is a leading hardware retailer, renowned for its wide range of home improvement products and personalized customer service. Founded in 1924 by a group of Chicago hardware store owners, Ace Hardware has grown into the largest retailer-owned hardware cooperative in the world. 

The company’s headquarters is located in Oak Brook, Illinois, and it began franchising in 1976.  Ace Hardware differentiates itself from big box competitors through its unique business model and community-focused approach. 

Unlike typical franchises, Ace operates as a cooperative, meaning that store owners are also shareholders in the company. This model allows Ace Hardware to harness collective buying power while maintaining the feel of a locally owned, neighborhood store. This local ownership fosters a high level of customer service, with knowledgeable associates offering expert advice and personalized service.

Ace Hardware stores offer a variety of high-quality products, including hardware, paint, lawn and garden supplies, tools, and other home improvement items. The company prides itself on carrying top brands like Craftsman, Weber, and STIHL. In addition to retail products, many Ace stores provide rental services under the "Ace Rental Place" brand, further broadening their customer appeal and service offerings.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Ace Hardware offers 2 types of franchises:

Type of Store Initial Investment
Ace Hardware Start-Up Business Leased Premises $579,350 - $1,913,080
Conversion Store $115,600 - $1,094,230

We are summarizing below the main costs associated with opening a Ace Hardware Start-Up Business - Leased Premises franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Ace Hardware Start-Up Business - Leased Premises

Type of Expenditure Amount
Initial Franchise Fee – Affiliation Fee $5,000
Capital Stock Subscription $5,000
Advertising – Initial Brand Assessment $6,000 - $12,000
Exterior Signage $10,000 - $30,000
Leasehold Improvements – Store Planning, Interior Décor, Consolidated fixtures, Furniture and Other Fixtures $102,750 - $200,850
Store Set Up Labor $10 per sq. ft
$30,000 - $120,000
Equipment $91,100 - $138,100
Rent – First 3 months’ rent and security deposit $21,000 - $107,000
Prepaid Expenses – Dues, Permits, Subscriptions, utilities, and other prepaid expenses $3,000 - $15,000
Opening Inventory $210,000 - $1,000,000
Initial Supplies $3,000 - $7,500
Insurance $2,500 - $30,000
New Investor Retail Training $0 - $37,730
Additional Funds – Working capital for the first 90 days $90,000 - $205,000
Total of Estimated Initial Investment $579,350 - $1,913,080

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Number of units

2023
Franchised units

4,441

4,540

4,645

Company-owned units

206

211

222

Total units

4,647

4,751

4,867

Franchise Disclosure Document

Training 

Ace Hardware provides comprehensive training for its franchisees through various programs to ensure the success and smooth operation of each store. The training includes:

  1. New Owner Learning Plan: This program must be completed by new investors before opening their first Ace store. It covers essential aspects of store management and operations.
  2. Ace Learning Place: An online training platform that offers over 1,700 courses for owners, their management teams, and associates. These courses cover a wide range of topics necessary for running a successful Ace Hardware store.
  3. In-Person Training: Conducted at Ace’s headquarters in Oak Brook, Illinois, as well as selected regional locations. These sessions provide hands-on experience and direct interaction with the Ace support team.
  4. Virtual Classroom Training: Provides flexible training options that can be accessed remotely, ensuring that franchisees and their staff can receive training without the need to travel.
  5. Annual Conventions: Training sessions and workshops are held twice a year at Ace’s spring and fall conventions. These events focus on various topics of interest to store owners and managers, offering opportunities to learn about new products, marketing strategies, and operational best practices.
  6. Specialized Workshops and Seminars: Periodically scheduled training sessions tailored to individual retailers and retailer groups, addressing specific needs and challenges faced by the stores.

Territory Protection

Ace Hardware does not offer exclusive territory protection to its franchisees. Franchisees may face competition from other Ace Hardware stores, competitive brands, and various distribution channels within their area. The membership and franchise agreements grant the right to operate a store at a specific location but do not guarantee territorial exclusivity​​.

This policy means that while franchisees benefit from the strong brand recognition and support of Ace Hardware, they must also rely on the quality of their service and local community engagement to succeed in the market. The cooperative model encourages franchisees to focus on delivering exceptional customer experiences and leveraging the collective buying power of the Ace Hardware network​.

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