Ace Hardware Franchise FDD, Profits & Costs
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.
Initial Investment
How much does it cost to start a Ace Hardware franchise? It costs on average between $140,000 - $2,019,000 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:
Ace Hardware offers 2 investment options:
| Type of Store | Initial Investment Range |
|---|---|
| Start-Up Business – Leased Premises | $611,928 to $2,018,550 |
| Conversion Store | $139,600 to $1,286,000 |
The table below highlights the estimated startup costs for the Start-Up Business – Leased Premises option.
For more information on the costs required to start an Ace Hardware franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Affiliation Fee | $5,000 |
| Capital Stock Subscription | $5,000 |
| Initial Brand Assessment | $6,000 to $12,000 |
| Local Lift Max Assessment | $6,500 to $48,100 |
| Exterior Signage | $10,000 to $30,000 |
| Store Planning, Interior Décor, Consolidated Fixtures, Furniture and Other Fixtures | $102,750 to $200,850 |
| Store Set Up Labor | $48,000 to $160,000 |
| Equipment | $91,100 to $138,100 |
| Rent – First 3 Months’ Rent and Security Deposit | $21,000 to $107,000 |
| Prepaid Expenses – Dues, Permits, Subscriptions, Utilities and Other Prepaid Expenses | $3,000 to $15,000 |
| Opening Inventory | $210,000 to $1,000,000 |
| Initial Supplies | $3,000 to $7,500 |
| Insurance | $10,000 to $40,000 |
| New Investor Retail Training | $0 to $45,000 |
| Additional Funds – Working Capital for the First 90 Days | $90,578 to $205,000 |
| Total Estimated Initial Investment | $611,928 to $2,018,550 |
Ace Hardware Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Ace Hardware franchise?
Most franchise buyers in Ace Hardwares investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans. Buyers with rollable retirement funds sometimes use a ROBS structure. See SharpSheets financial model hub for guidance.
How long does it take to pay back a Ace Hardware franchise investment?
Payback periods typically run 3-7 years depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: July 2026
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. SharpSheets is an independent educational resource and is not affiliated with, endorsed by, or representing any franchisor mentioned on this website. Where noted, figures are taken from the franchisor’s Franchise Disclosure Document (FDD). In some cases, we may provide independent calculations or estimates based on publicly available information. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
