Hardware Hank Franchise FDD, Profits & Costs (2025)
Hardware Hank traces its roots back to 1945 when it was founded in Plymouth, Minnesota. Today, it operates as a trusted hardware retail franchise under the ownership of United Hardware Distributing Company.
United Hardware, now based in Maple Grove, Minnesota, transitioned into a dealer-owned cooperative in 1957. This structure was designed to give independent hardware store operators the advantages of shared resources and group purchasing while still maintaining their own autonomy.
The Hardware Hank franchise introduced membership agreements in 1954. Through these agreements, retailers gain access to inventory from United Hardware at cost-plus pricing and also benefit from annual rebates.
Hardware Hank locations provide an extensive selection of products, ranging from power and hand tools to electrical, plumbing, home improvement, and lawn and garden supplies. This broad product mix serves the needs of DIY enthusiasts, homeowners, and professional contractors.
Initial Investment
How much does it cost to start a Hardware Hank franchise? It costs on average between $307,000 – $2,177,000 to start a Hardware Hank franchised facility.
This includes costs for store build-out, equipment, initial inventory, and early operating expenses. The exact investment varies depending on several factors, such as the size of the store, its location, and whether the franchisee decides to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Membership Fee | $3,450 |
| Equipment, Fixtures, Signage and Leasehold Improvements | $80,000 – $250,000 |
| Initial Merchandise Inventory | $152,000 – $1,520,000 |
| Purchase of Class A Shares | $3,040 – $30,400 |
| Security Deposits, Business Licenses and Other Prepaid Expenses | $6,300 – $25,200 |
| Computer and Point-of-Sale Systems | $11,000 – $90,000 |
| Insurance (First 3 Months) | $1,000 – $7,500 |
| Additional Funds – Working Capital for First 3 Months of Operation | $50,000 – $250,000 |
| Total (Excluding Real Estate Expenses) | $306,790 – $2,176,550 |
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Frequently Asked Questions
How many Hardware Hank locations are there?
As of the latest data, Hardware Hank operates a total of 577 locations across the United States, all of which are franchise-owned. The brand does not operate any company-owned stores, making it entirely franchise-driven.
What is the total investment required to open a Hardware Hank franchise?
The total investment required to open a Hardware Hank franchise ranges from $307,000 to $2,177,000.
What are the ongoing fees for a Hardware Hank franchise?
The ongoing fees for a Hardware Hank franchise include a royalty fee of 3% of gross sales and a marketing and advertising fee of 1% of gross sales.
What are the financial requirements to become a Hardware Hank franchisee?
To become a Hardware Hank franchisee, the financial requirements include a minimum net worth of $400,000 and liquid capital of at least $100,000.
Who owns Hardware Hank?
The Hardware Hank franchise is owned by United Hardware Distributing Company, a dealer-owned cooperative headquartered in Maple Grove, Minnesota.
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