Ace Hardware

Ace Hardware

Information based on 2023 FDD

Retail · Other Retail Businesses

Investment min
$579K
Total: $579K–$2M
Avg gross revenue
$4M
Unit-level, 2023
Franchise fee
$5K
Per current disclosure
Royalty
N/A
Locations
4,645
Franchising since 1976

Description

What is Ace Hardware?

Ace Hardware stands as America's most trusted neighborhood hardware retailer, with a legacy dating back to 1924. As a cooperative of independently owned stores, Ace Hardware combines the personalized service of a local business with the buying power and resources of a national brand. Each location is uniquely tailored to its community while maintaining the consistent quality and service that has become synonymous with the Ace name.

What sets Ace Hardware apart is their unwavering commitment to customer service, epitomized by their famous slogan 'The Helpful Hardware Folks.' Store owners and employees are known for their deep product knowledge and willingness to provide personalized solutions for every customer's needs. Whether you're a DIY enthusiast or a professional contractor, Ace Hardware stores offer expert advice and guidance for projects of any size.

The stores feature comprehensive departments including hardware, paint, lawn and garden, tools, plumbing, electrical, and seasonal items. Ace Hardware is particularly renowned for their paint department, offering premium brands and expert color matching services. Their convenient locations and well-organized stores make it easy for customers to find exactly what they need without the overwhelming experience of big-box retailers.

As a franchise owner, you'll become part of a trusted brand that emphasizes community involvement and relationship-building. The cooperative structure provides entrepreneurs with the independence to tailor their store to local needs while benefiting from Ace's established supply chain, marketing support, and training programs. This business model has proven successful across diverse markets, from small towns to urban centers, making Ace Hardware a cornerstone of communities nationwide.
  • 100 years established brand (since 1924)
  • 4,867 locations nationwide network
  • Exceptional revenue performance: $4.3M average vs $937K subsector average
  • Revenue 4.6x higher than retail subsector average
  • Cooperative buying power advantages
  • Proven recession-resistant business model with century-long track record

Location Analysis

Where Ace Hardware wins

Ace Hardware demonstrates robust national coverage across numerous states, showcasing particularly strong presence in the Midwest and Eastern regions. The brand maintains notable concentrations in states like Michigan, Virginia, New York, North Carolina, and Tennessee, indicating successful market penetration in diverse geographic areas. The franchise's impressive customer satisfaction ratings across thousands of reviews suggests consistent service quality nationwide.

The brand's strategic positioning typically targets suburban and small-town markets, where it effectively competes against big-box retailers through personalized service and community integration. Successful locations often feature 8,000-12,000 square feet in community-centric retail zones with strong residential density and median household incomes above $50,000.

Expansion opportunities exist particularly in the Western United States, where market coverage is less extensive. Ideal locations demonstrate strong local housing markets, active DIY communities, and limited competition from other hardware retailers within a 3-5 mile radius. The franchise shows particular success in areas with high homeownership rates and active construction markets.

Prospective franchisees should focus on communities with stable population growth, strong retail corridors, and demographics aligned with home improvement spending. The brand's proven success across diverse markets suggests adaptability to various regional contexts while maintaining consistent service quality.
Total US locations
4,867
Franchise units
4,645
Corporate locations
222
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind Ace Hardware

Avg gross revenue$4,297,469
Investment range$579,350 – $1,913,080
Investment midpoint$1,246,215
Brand fundN/A
RoyaltyN/A
Franchise fee$5,000
Min. net worth
Min. liquid capital
Ace Hardware requires a substantial investment of **$579,350 - $1,913,080**, positioning it as a premium franchise opportunity significantly above the retail sub-sector average of $453,266 - $715,998. The maximum investment is nearly 2.7x higher than the subsector average, reflecting the comprehensive nature of a full-service hardware store operation including inventory, fixtures, equipment, and working capital.

The financial performance justifies this premium investment, with **gross revenue of $4,297,469** - an impressive **4.6x higher** than the subsector average of $937,273. This exceptional revenue performance demonstrates the effectiveness of Ace's proven business model and strong market position in the hardware retail sector.

With **4,867 units** and **100 years** of operation since 1924, Ace Hardware represents one of the most established franchise systems in retail. This extensive network provides significant purchasing power, brand recognition, and operational infrastructure through their cooperative business model, allowing franchisees to benefit from collective buying advantages while maintaining local ownership.

The hardware retail sector benefits from consistent consumer demand for home improvement, maintenance, and seasonal products. Despite e-commerce growth, hardware stores maintain competitive advantages through immediate product availability, expert advice, and local community connections, contributing to the strong revenue performance.

Ideal investors should possess substantial liquid capital exceeding the minimum investment, retail or business management experience, and commitment to community engagement. The proven financial track record and comprehensive support systems make this an attractive opportunity for qualified investors seeking a recession-resistant business model.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$579K–$2M
Most common
$579,350
Minimum
$1,246,215
Midpoint
$1,913,080
Maximum

Per FDD Item 7, total initial investment ranges from $579,350 to $1,913,080. The midpoint $1,246,215 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$5M$4M$3M$2M$1MN/A
$3M
$4M
2021
2022
2023
Avg
$3M
YOY change (2022 -> 2023)
+34%

According to Item 19 of the Franchise Disclosure Document, Ace Hardware has an average gross revenue of $4M. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+2% YoY
6,0004,8003,6002,4001,2000
2019
2020
2021
2022
2023
4,867 units open as of 2023 FDD+116 in last 12 mo

2023 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for Ace Hardware's 2023 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2023 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a Ace Hardware franchise typically ranges between $579,350.00 and $1,913,080.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2023. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

Ace Hardware
Ace Hardware
$4M avg revenue · 4645+ US franchises

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