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Known as “the place with the helpful hardware folks,” Ace Hardware has over 5,600 stores around the world that are mainly independently owned and operated by local entrepreneurs.
By Victoria Campisi Staff Writer Updated 6:18PM • 01/18/23LAST UPDATED: 1/2024
NUMBER OF LOCATIONS: 5,800+
REPORTED COST TO GET IN: $579,000 - $1,900,000+
REPORTED ROI (Item 19): $1,468,805 (median annual sales for convenience store format per 2021 FDD)
Ace Hardware was founded in Chicago in 1924. It is the largest retailer-owned hardware cooperative in the world, with over 5,600 locally owned and operated hardware stores in approximately 65 countries. Since its founding, the brand has become a part of local communities everywhere and is known as “the place with the helpful hardware folks.”
Headquartered in Oak Brook, Illinois, Ace Hardware and its subsidiaries operate an expansive network of distribution centers across the United States and have distribution capabilities in China and Mexico.
Ace Hardware operates more than 5,800 locally owned hardware stores in all 50 states and 60 countries, with global sales topping $22 billion. Stores come in a variety of sizes based on the needs of each individual neighborhood. The brand has small urban stores, large rural stores and everything in between.
In 2023, Ace Hardware opened over 100 new locations . Globally, the franchise has opened more than 1,100 stores in the past five years. The new store growth has been fueled by existing retailers opening additional locations, competitor stores converting to Ace and new investors opening their first Ace Hardware store. The brand says that interest in owning and operating a local Ace Hardware store continues to be at historically high levels.
To keep pace with the growth , the brand continues to invest in expanding its distribution network to house more inventory. Ace Hardware plans to add 4.4 million square feet of capacity to its distribution network by opening three new warehouses in the next five years. That’s in addition to the more than 2.5 million square feet it’s added in the past four years.
After the initial costs to buy in, Ace Hardware franchisees pay ongoing fees for the brand’s central services, but they do not pay an ongoing royalty fee . Everything put in goes toward the company they own.
Ace owners are expected to be actively involved in the running of their stores as shareholders and members of the cooperative. Although there is a lot of independence in this model, franchisees cannot run the business as absentee or semi-absentee owner.
Different formats include:
Below are financial performance representations according to Ace Hardware's 2021 Item 19, as reported by Franchise Chatter . The financial performance representation presented in this Item 19 should not be considered as the actual, potential, or probable results that you will realize from the operation of your store.
Convenience Hardware Format
Core Hardware Format
Super Hardware Format
Home Center Format
Contractor-Oriented Supply Format
In order to open an Ace Hardware store, franchisees must meet the minimum financial requirements of $250,000 of unencumbered cash and $400,000 net worth. Depending on the size of the store, total investment can range from $579,000 to over $1,900,000.
Investment costs for new businesses on a leased premises can include :
New Ace Hardware franchisees can expect to pay a $5,000 franchise fee for the rights to open their own location.
Want to learn more about franchise opportunities on 1851, be sure to visit our Power Rankings to read more on brands making moves.
Check out these three 1851 Franchise brands:
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Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
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