Ace Hardware Franchise FDD, Profits & Costs (2025)
Ace Hardware, founded in 1924, is the largest retailer-owned hardware cooperative in the world. Its headquarters are in Oak Brook, Illinois, with distribution centers across the U.S. and internationally in China, Panama, and the UAE.
The company began franchising in 1976, offering a wide range of products, including lawn care, paint, hardware, and home improvement items.
Ace Hardware sets itself apart with a localized business model. Each franchise is tailored to meet local community needs, providing a personalized shopping experience that aligns with regional preferences.
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Ace Hardware Franchise Initial Investment
It costs on average between $116,000 – $1,913,000 to start a Ace Hardware franchised store.
This includes construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of store you choose, the location, and whether the franchisee chooses to lease or purchase the property. Ace Hardware offers 2 types of franchises:
| Type of Store | Initial Investment Range |
|---|---|
| New Ace Hardware® store (leased premises) | $579,350 to $1,913,080 |
| Conversion to an Ace Hardware® store | $115,600 to $1,094,230 |
We are summarizing below the main costs associated with opening a New Ace Hardware® store (leased premises) franchise. For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount (Start-Up Business – Leased Premises) |
|---|---|
| Initial Franchise Fee – Affiliation Fee | $5,000 |
| Capital Stock Subscription | $5,000 |
| Advertising – Initial Brand Assessment | $6,000 – $12,000 |
| Exterior Signage | $10,000 – $30,000 |
| Leasehold Improvements – Store Planning, Interior Décor, Consolidated fixtures, Furniture and Other Fixtures | $103,000 – $201,000 |
| Store Set Up Labor | $30,000 – $120,000 |
| Equipment | $91,000 – $138,000 |
| Rent – First 3 months’ rent and security deposit | $21,000 – $107,000 |
| Prepaid Expenses – Dues, Permits, Subscriptions, utilities (deposits may be refundable) and other prepaid expenses | $3,000 – $15,000 |
| Opening Inventory | $210,000 – $1,000,000 |
| Initial Supplies | $3,000 – $7,500 |
| Insurance | $2,500 – $30,000 |
| New Investor Retail Training | $0 – $38,000 |
| Additional Funds – Working capital for the first 90 days | $90,000 – $205,000 |
| Total of Estimated Initial Investment | $579,000 – $1,913,000 |
Ace Hardware Franchise Average Revenue (AUV)
A Ace Hardware franchised store makes on average $3,378,000 in revenue (AUV) per year. This is across their 3 formats: Super Hardware, Home Center and Contractor Orientated.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,316,000 yearly revenue for similar hardware franchises. Below are 10 Ace Hardware competitors as a comparison:
The most profitable franchises to own in 2025
We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Ace Hardware Franchise Disclosure Document
Frequently Asked Questions
How many Ace Hardware locations are there?
As of the latest data, Ace Hardware operates more than 5,800 locations globally. Most of these stores are franchise-owned, with around 200 company-owned stores. Specifically, in 2020, there were 206 company-owned stores, and the rest were franchise locations.
This makes Ace Hardware primarily a franchise-based network, with the majority of stores independently owned and operated.
What is the total investment required to open a Ace Hardware franchise?
The total investment required to open a Ace Hardware franchise ranges from $579,000 – $1,913,000 for the New Ace Hardware® store (leased premises).
What are the ongoing fees for a Ace Hardware franchise?
Ace Hardware does not charge a traditional royalty fee. Instead, it operates under a profit-sharing model where store owners share in the cooperative’s profits, receiving distributions at the end of the fiscal year.
Additionally, franchisees are required to pay a national advertising fee, which typically ranges from 1% to 3% of gross sales. This fee supports both national and regional advertising initiatives aimed at promoting the Ace Hardware brand across all markets.
What are the financial requirements to become a Ace Hardware franchisee?
To become an Ace Hardware franchisee, you must meet certain financial requirements. The minimum net worth required is $400,000, along with at least $250,000 in liquid assets.
These financial criteria ensure that prospective franchisees have the capital needed to cover startup costs, inventory, and ongoing expenses associated with running an Ace Hardware store, which can range from $579,000 to over $1.9 million depending on the store type and location.
How much can a Ace Hardware franchise owner expect to earn?
The average gross sales for a Ace Hardware franchise are approximately $3.38 million per location. Assuming a 15% operating profit margin, $3.38 million yearly revenue can result in $507,000 EBITDA annually.
Who owns Ace Hardware?
Ace Hardware is a cooperative owned by its independent store owners. Unlike traditional franchise models, where a corporate entity owns and controls the brand, Ace Hardware operates as a retailer-owned cooperative. This means that the individual store owners are also shareholders of the Ace Hardware Corporation.
Each franchisee has a stake in the company, sharing in the cooperative’s profits, and having a say in certain business decisions. This structure allows the store owners to have more control and involvement in the overall operations of the company.
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