
Ace Hardware
Hardware and home improvement stores- 2022 Franchise 500 Rank
-
#12 Ranked #23 last year
- Initial investment
-
$292K - $2.1M
- Units as of 2021
-
5,554 7.2% over 3 years
Here’s what you need to know if you’re interested in opening a Ace Hardware franchise.
Ace Hardware aims to be one of the best, most helpful hardware stores in town. With local communities in mind, the company typically gives franchisees the power to customize their Ace Hardware location. Ace Hardware seeks to live up to its jingle and truly be "the place with the helpful hardware folks."
The company began in 1924 and started franchising over five decades later, in 1976. It now has a large base in the United States, where it boasts over 4,400 franchised locations. It is also present in bulk internationally, where it has over 800 franchises.
Why You May Want to Start an Ace Hardware Franchise
Ace Hardware stresses teamwork and corporate assistance. The field staff team will likely train franchisees in how to open their store, develop and execute their growth plan, and sustain their momentum. They may also consult with franchisees on how to take advantage of local opportunities.
Ace Hardware is a team-focused company and wants to see its franchises grow. Franchisees will typically have access to a large team of experts who will usually guide franchisees as they navigate the business.
An Ace Hardware franchise is, for the most part, individually owned. Because the stores are locally-owned and operated, customers tend to be friends, neighbors, and community members. This means that the owner has the potential to hone in on a customer's needs and create meaningful customer-owner relationships.
Ace Hardware has been a consistent high-ranker in Entrepreneur's Franchise 500, Fastest-Growing Franchises, and Top Global Franchises for many years. These rankings are based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make an Ace Hardware Franchise a Good Choice
An Ace Hardware franchise may be a good choice for those looking to open a community-based business. Franchisees can possibly customize what they sell based on local market demand. For example, if you live in New Mexico, you may not have to keep snow shovels in stock. But if you live in Minnesota or Michigan, you can provide heavy-duty snow shovels and other snow-ready commodities.
Customization could also mean that a franchisee can expand a specific department to include household appliances. All this depends on your area's needs. The Ace Hardware team will typically offer owners advice on what to carry in their stores, so there are no missed opportunities.
Ace Hardware offers its Ace Rewards program and free store pickup to customers, as well. This may drive customer conversion.
How to Open an Ace Hardware Franchise
Before making any financial commitment or signing an agreement, it is crucial that you perform your due diligence. Speak to existing franchisees and ask questions directed to the Ace Hardware team. Make sure you take time to explore the opportunity. Research the brand and your local area to see if an Ace Hardware franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
If all goes well, an Ace Hardware representative will contact you and discuss how to open a store. If you qualify, the representative will guide you through what you need to do to open.
Soon, you may be opening the doors to your Ace Hardware store and offering hardware to those in your community.
Company Overview
About Ace Hardware
- Industry
- Retail
- Related Categories
- Miscellaneous Retail Businesses, Home Improvement
- Founded
- 1924
- Leadership
- John Venhuizen, CEO
Franchising Overview
- Franchising Since
- 1976 (46 years)
- # of employees at HQ
- 1,288
- Where seeking
-
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 5,554 (as of 2021)
Franchisor Information
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Ace Hardware franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $5,000
- Initial Investment
- $292,000 - $2,119,230
- Net Worth Requirement
- $400,000
- Cash Requirement
- $250,000
- Veteran Incentives
- Franchise fee (affiliation fee) waived
- Term of Agreement
- None
- Is franchise term renewable?
- No
Financing Options
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Ace Hardware has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- Classroom Training
- 40 hours
- Ongoing Support
-
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
-
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- Yes
- Can this franchise be run from home/mobile unit?
- No
- Can this franchise be run part time?
- No
- # of employees required to run
- 15-25
- Are exclusive territories available?
- Yes
Franchise 500 Ranking History
Compare where Ace Hardware landed on this year’s Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Ace Hardware ranked on other franchise lists? Find out below.
Ranked #12 in 2022
Franchise 500 Ranking
Ranked #39 in 2021
Fastest-Growing Franchises
Ranked #12 in 2020
Top Global Franchises
Ranked #132 in 2020
Top Franchises for Veterans
Ranked #1 in Miscellaneous Retail Businesses in 2021
Best of the Best
Ranked #1 in 2022
#1 in Miscellaneous Retail Businesses Category
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