Quick summary

Ace Hardware Franchise Costs & Profits (2024): Founded in 1924 in Chicago, the ACE Hardware Corporation was established as a cooperative for electrical supplies. Originally named “Allied Cooperative Electrical,” the company emphasized electrical tools and products. Over the past 100 years, ACE has grown into a global hardware store chain with over 5,800 independently owned locations across 60 countries.

ACE Hardware is renowned for quality products, expert staff, and personalized service, earning its reputation as “The Helpful Place” for DIY enthusiasts. Its diverse product range includes hardware, tools, paint, plumbing, and more. Operating under a retailer-owned cooperative model, ACE prioritizes local ownership and community engagement, making it an appealing choice for entrepreneurs.

• 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.

• Franchise owners receive 40 hours of comprehensive training covering operational and marketing strategies.

• Initial investments range from $31,557 to $1,574,230, with a liquid capital requirement of $250,000 and a minimum net worth of $400,000.

• Franchise owners earn an estimated $72,000 to $133,000 annually, with median sales of $1,468,805.

Is Ace Hardware a Franchise?

No, ACE Hardware locations operate as retailer-owned cooperatives rather than traditional franchises. This unique business model eliminates ongoing franchise or royalty fees, allowing owners to retain more profits.

ACE Hardware offers entrepreneurs two options:

• Start a New Store: Build a store from the ground up.

• Convert an Existing Store: Rebrand and align an existing hardware store under the ACE Hardware banner.

As shareholders, ACE store owners benefit from collaborative decision-making, fostering a strong sense of community and shared success among retailers.

How Many Ace Hardware Locations Are There?

As of May 2024, ACE Hardware operates 5,813 units worldwide, making it the largest retailer-owned appliance cooperative. While most stores are based in the U.S., ACE also has a significant presence across 60 countries.

The company’s extensive reach contributes to nearly $16 billion in annual wholesale sales. ACE also operates 17 distribution centers in the U.S. and additional facilities in China, Panama, and the UAE.

What Training Is Required to Open an Ace Hardware?

ACE Hardware provides comprehensive training to ensure franchise success. Owners receive:

• Initial Training: 40 hours of classroom and on-the-job instruction.

• Virtual & In-Person Support: Access to ACE’s headquarters and online resources.

• Ongoing Education: Over 1,600 online courses for continuous staff development.

Training covers critical topics like site selection, inventory management, and marketing strategies. Franchisees also gain access to a supportive network of experienced peers and ACE’s robust operational systems.

How Much Does It Cost to Open an Ace Hardware?

Opening an ACE Hardware store requires varying levels of investment based on the store type:

• New Locations: $31,557 to $149,398

• Conversions: $272,500 to $1,574,230

Additional Costs Include:

• Initial Franchise Fee: $5,000 (waived for veterans in the U.S.)

• Employee fees

• Marketing expenses

• Furnishings and signage

• Administrative costs

Financial Requirements:

• $250,000 in liquid capital

• Minimum net worth of $400,000

What Is the ACE Hardware Franchise Fee?

ACE Hardware’s initial franchise fee is $5,000, significantly lower than competitors. Additionally, there are no ongoing royalty fees, a significant advantage for franchise owners.

This fee is waived for U.S. military veterans, showcasing ACE’s commitment to supporting veterans entering the entrepreneurial space.

How Much Does an Ace Hardware Franchise Owner Make a Year?

ACE Hardware franchise owners earn an estimated $72,000 to $133,000 annually, with an average base salary of $95,000. Additional earnings may include bonuses, stock options, or profit sharing.

Median annual sales per ACE Hardware store reached $1,468,805 in 2021, highlighting the brand’s profitability and growth potential.

Pros and Cons of Owning an Ace Hardware Franchise

Pros:

• No ongoing royalty fees, maximizing owner profits.

• Strong brand reputation and established community trust.

• Comprehensive training and ongoing support.

Cons:

• High upfront investment costs.

• Significant competition within the hardware retail market.

• Strict adherence to ACE’s cooperative guidelines.

Why Choose Ace Hardware?

With 100 years of experience, ACE Hardware offers a trusted brand and proven business model. Its cooperative structure emphasizes community ownership and shared success, making it an ideal choice for entrepreneurs seeking a supportive and profitable venture.

Interested in exploring more franchise opportunities? Check out our guide to 5 Low-Cost Franchises That Make $1,000,000 and discover how to maximize your investment potential!