QUICK SUMMARY
Founded in 1924 in Chicago, the ACE Hardware Corporation was established 100 years ago as a cooperative for electrical supplies. In fact, the name originally stood for “Allied Cooperative Electrical,” showcasing its emphasis on electrical tools and other products.
The company has since expanded to a global hardware store chain with over 5,800 independently-owned ACE Hardware franchises across 60 countries.
ACE is known for quality products, expert staff, and personalized service. They are focused on being “the helpful place” for customers to meet their DIY needs. The company’s diverse range of products includes hardware, tools, paint, plumbing, and more.
ACE operates similarly to franchises under a retailer-owned cooperative model, emphasizing local ownership and community connection to customer base, making it a solid investment for entrepreneurs seeking a supportive franchise opportunity.
KEY TAKEAWAYS
- ACE Hardware operates as a retailer-owned cooperative, not a franchise, eliminating ongoing fees for franchisees.
- With over 5,800 locations worldwide, ACE is the largest retailer-owned appliance cooperative globally.
- ACE Hardware franchise owners receive comprehensive training, including 40 hours of classroom and on-the-job instruction.
- Initial investments for ACE franchises vary, ranging from $31,557 to $1,574,230, with financial prerequisites of $250,000 of liquid capital and a minimum net worth of $400,000.
- ACE Hardware franchise owners earn an estimated $72K to $133K annually, with additional benefits and median sales of $1,468,805.
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Is Ace Hardware A Franchise?
No, since 1974 ACE Hardware locations have operated as retailer-owned cooperatives, rather than franchises. A benefit of this distinct business model for the franchisee is that the company requires no ongoing franchise fees or royalty fees.
ACE provides potential franchisees with the option of beginning a new store from scratch or converting an existing hardware retail store under the ACE Hardware brand.
Committed to the cooperative model for over 85 years, ACE offers the opportunity for privately owned hardware stores to become shareholders.
This unique cooperative model fosters community ownership and collaboration among ACE retailers.
How Many Ace Hardware Locations Are There?
As of May 2024, there are 5,813 ACE Hardware units in operation, making ACE the largest retailer-owned appliance cooperative in the world.
Though most ACE stores are located in local communities within the United States, their independently-owned cooperatives span across 60 countries.
The volume and strategic placement of ACE Hardware stores translates to nearly $16 billion in wholesale sales and gross profits for the company annually.
In addition to its local hardware franchise units, ACE operates 17 distributions throughout the United States, as well as in China, Panama, and the United Arab Emirates.
What Training Is Required To Open An Ace Hardware?
ACE Hardware offers comprehensive ongoing support to franchise owners, covering initial training, ongoing assistance, and access to a network of experienced peers.
Training, which includes 40 hours of on-the-job and classroom instruction, covers various operational aspects like site selection, inventory management, and marketing strategies.
Virtual and in-person training sessions are available at ACE Hardware headquarters, with ongoing access to more than 1,600 online courses and virtual classroom training for continuous staff development.
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How Much Does It Cost To Open An Ace Hardware?
For entrepreneurs considering an ACE Hardware franchise, the initial investment costs vary significantly, with a total ACE Hardware franchise cost ranging from $31,557 to $149,398 for new locations and $272,500 to $1,574,230 for conversions of existing stores.
To open an ACE Hardware store, prospective franchisees must meet the minimum financial requirements:
- $250,000 in liquid capital
- Minimum net worth of $400,000
Associated costs of ACE franchise ownership include employee fees, marketing, furnishings and signage, and other administrative costs.
While there are no ongoing franchise fees or royalty fees, new ACE store owners are responsible to pay a $5,000 initial franchise fee.
What Is The ACE Hardware Franchise Fee?
Relative to other similar franchises in the hardware industry, ACE Hardware franchise fees are relatively low.
As stated above, the initial franchise fee to open an ACE Hardware franchise is $5,000, but there are no ongoing royalty fees.
This initial franchise fee is waived in the United States for veterans.
How Much Does An Ace Hardware Franchise Owner Make A Year?
ACE Hardware franchisees can earn an estimated annual salary ranging from $72K to $133K, with an average base salary of $95K annually.
Additional pay may include bonuses, stock, commissions, or profit sharing.
Median annual sales for ACE Hardware franchises were $1,468,805, according to the 2021 FDD.
As of 2024, ACE Hardware ranked #5 on the list of top franchise opportunities in the world, according to Entrepreneur’s Franchise 500.
With ACE’s established brand and potential for earnings, investing in your own business with ACE could provide a solid opportunity for entrepreneurs seeking to enter the hardware retail and home improvement industry.