Are you interested in franchise opportunities but simply hate paying ongoing franchise or royalty fees? You may have a perfect opportunity at Ace Hardware to reap the benefits of! This is due to the fact that Ace Hardware franchisees are not required to pay franchising or royalty fees. When you own a franchise for Ace Hardware, you control your business and gain access to Ace’s resources for brand awareness and business support. As a well-known retailer of home improvement products, the Ace Hardware Corporation proves to be a great franchisor partner for business owners of franchises.
As per statistics, between 2010 and 2021, the U.S. retail annual growth rate climbed from 5.63% to 19.38%. As of 2021, U.S. retail sales have exceeded $4.44 trillion, up 10% from 2020. As of 2022, the value of all retail transactions worldwide is a remarkable $26.7 trillion.
What is Ace Hardware?
Established in 1924 as “Ace Shops,” the Ace Hardware Corporation changed its name to “Ace Hardware Corporation” in 1931.
Ace Hardware stores emphasize a pleasant, individualized shopping experience while selling high-quality home improvement products. The biggest retailer-owned hardware cooperative in the world, Ace’s brand strategy aims to achieve the best of both worlds, leveraging the purchasing power of its thousands of locations while setting itself apart from the massive big-box chains through convenient, locally owned neighborhood locations staffed by friendly, knowledgeable associates.
The franchisees of Ace Hardware have the option to convert from independently held hardware stores to company shareholders.
Is Ace Hardware a Franchise Opportunity?
Yes, Ace Hardware is indeed a Franchising opportunity.
Facts That Nobody Told You About Ace Hardware
- No two stores are the same.
- They fail to always be the best deal around.
- At times, you can try and succeed in talking your way into a more effective price.
- It is a co-op model.
- They offer an Ace Rewards Program.
- The company has a less generous return policy.
- They do not have a knack for online platforms and operations.
|Ace Hardware Franchise Review and Information|
|Industry Type||Retail Franchises|
|Sub Category||Hardware Retail Businesses|
|Company Name||Ace Hardware|
|Founder/Management Head||John Venhuizen|
|Employees at Company H.O||1,288|
|Franchise Expansion Plan||US and worldwide|
|Number of Units||5,555|
|Number of Franchise Units||5,000|
|Social Media Handles|
|Company Office location||Oak Brook, Illionis|
Ace Hardware Franchise Requirements
Franchises requirements to start an Ace Hardware are
- Cash requirement: $250,000
- Net worth: $400,000
Other costs and prices related to the franchise are provided below in the blog.
How much does an Ace Hardware franchise cost
The franchise cost of Ace Hardware is $292,000-$2,119,230 with a franchise fee ranging somewhere between $5,000 and $97,500.
|Ace Hardware Franchise Price and Costs|
|Ace Hardware Franchise Fee||$5,000|
|Ace Hardware Franchise Cost||$292,000-$2,119,230|
|Term of Agreement||None|
|Is franchise term renewable?||No|
|Renewable Franchise Fees||–|
|Veteran Incentive||Franchise fee waived|
How much do Ace Hardware franchise owners make?
No data on the prospective earnings of a franchise owner upon having an Ace Hardware franchise is available. However, it is estimated that a franchise owner can earn
What is Ace Hardware franchise profit?
Ace Hardware is considered to be a great company to buy because a franchise may bring in a profit of over $80,000 annually.
Ace Hardware Training to Franchises
The franchisor’s retail training division creates and provides in-person training at its headquarters in Oak Brook, Illinois, at specific regional locations, in stores, and at its yearly conferences in addition to online training, in-person training, and virtual classroom training. Before launching their store, new owners who are opening their first Ace location must attend the Base Camp New Owner program.
The training courses for owners, their management team, and their employees are available on the franchiser’s Ace Learning Place online training platform. Franchisees get access to more than 1600 courses that they can use to teach their staff. The franchisor frequently plans seminars and training events for both single retailers and groups of retailers.
At its spring and fall conventions each year, the franchisor also offers training seminars and workshops on subjects of interest to store owners and managers.
How is Ace Hardware Territory Granted to Franchises
Franchisees will not be given a territory that is all their own. Franchisees could encounter competition from other affiliate stores, rival brands, and alternative distribution channels. According to the Membership Agreement and Ace Brand Agreement, the membership of the franchisee is provided for a particular store location.
What is the Franchise Term of Agreement and Renewal?
The agreement does not have a set duration. For renewal or extension, there are no set durations as well.
Does Ace Hardware provide Financial Assistance to Franchises?
See the FDD for information on the franchisor’s various financial assistance initiatives. All of the programs mentioned there are financed by the franchisor. Also, Ace Hardware is a registered franchises with the Small Business Administration (SBA). Franchisees will benefit from a shortened loan application review process if they decide to apply for an SBA loan as a result of this listing.
Pros & Cons of owning an Ace Hardware Franchise
Pros of owning a Ace Hardware
- New incentives for stores
- Each year, the retail owners receive a percentage of the firm revenues but no royalty fees.
- Independent ownership with committed support and training
- Adaptable product mix which may be tailored to the needs of your local market
- Solid base and a future free from trends
- acknowledged both nationally and internationally acknowledged
Cons of Owning a Ace Hardware Franchises
- Crowded place
- High overhead expenses
- Financial struggles initially
What are Ace Hardware franchise owner reviews
Many existing Ace Hardware franchisees are happy with the business relationship as of the time of this writing.
Ace Hardware Franchise Rankings
The rankings of Ace Hardware as a franchising can be categorized under the following heads
- 7 in 2023 under Franchise 500 ranking
- 1 in Miscellaneous Retail Businesses Category in 2023
- 20 in 2022 under Fastest-Growing Franchises
- 12 in 2022 under Top Global Franchises
- 13 in 2022 under Fastest-Growing Franchises (U.S. & Canada)
- 1 in Miscellaneous Retail Business in 2021 under Best of the Best
Franchise Deck Analysis and Overview
They are your neighborhood hardware shop, and therefore belong to your community. There are more than 5,000 Ace Hardware locations worldwide, the majority of which are privately owned and run by local business owners. These dedicated men and women are a crucial component of your community.
If you are considering opening an Ace Hardwares franchise, you probably know that there are no franchise fees and no royalty fees, which are the two biggest benefits for business owners and entrepreneurs like you.
That makes any Ace Hardwares store you open potentially more profitable than a different franchise location on its own.
But that is not the only reason you should think about opening an Ace Hardwares franchise and establishing yourself as the neighborhood’s go-to, helpful hardwares specialist. The name Ace Hardware is well-known as a brand. People immediately turn to names they know and love, like Ace Hardware, when they need hardware items.
Ace Hardware Franchise Success and Failure Rate
The below table will highlight the Ace Hardware franchises success and failure rate for the last 3 years. This will supplement your decision-making process.
Competition Analysis of Ace Hardware
|Ace Hardware||Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|Rent-A-Center Franchise||$363,275-$569,525||$35,000||5%+3%||$1.024 billion||3.5-5 years||3.5/5|
|Batteries Plus Franchise||$190,144-$367,358||$37,500||5%+1%||$723,405||–||4/5|
|Wireless Zone Franchise||$160,000-$414,500||$1,000-$25,000||9-22% of gross profit||$563,321||–||3.9/5|
|Crown Trophy Franchise||$168,150-$227,700||$35,000||5%||–||–||3/5|
The rating for the Ace Hardware franchises is 3.9/5.0.
Conclusion: Is Ace Hardware a good choice?
They are devoted neighborhood small business entrepreneurs. exactly like it should be. At Ace, they have continued to be small and quite personal while others have grown big and impersonal. Because of this, people often claim that seeing Ace is similar to visiting a neighbor. Fortunately, Ace Hardware has an unquestioningly positive reputation. Several Franchise 500 rankings have included Ace Hardware as a top franchise and numerous other publications and organizations also give it good ratings.
However, it is not the only reason why you should think about opening an Ace Hardware store in your neighborhood. You are not obligated to start a brand-new business from scratch. As an alternative, you might start a fresh location or turn an existing hardware store into an Ace Hardware franchised business.
Imagine if you tried to create a hardware store with your own branding but found it difficult to attract and keep a loyal customer base; an Ace helps look after this. To conclude, it is quite evident that Ace Hardwares stands out above all others in terms of franchise potential for hardwares stores. Invest in one today!
Entrepreneurs who want to open a franchise in the category franchise opportunities categories can look at
- BEHR Franchise
- Rent-A-Center Franchise
- Batteries Plus Franchise
- Wireless Zone Franchise
- Slumberland Franchise
- Crown Trophy Franchise
- The Home Depot Franchise
- Menards Franchise
- Lowe’s Home Improvement Franchise
- The Value Franchise
Frequently Asked Questions (FAQs)
- Is the Ace Hardware franchises profitable?
Yes, a franchises of Ace Hardware is can prove to be profitable if managed correctly.
- Can you make money owning Ace Hardware?
Yes, a potential franchisee can easily make money awning Ace Hardware.
- Is Ace Hardware a franchises?
Yes, they started franchising in 1976.
- How much is an Ace Hardware franchises?
The initial investment is $292,000-$2,119,239 and the franchises fee is $5,000 when it comes to starting a franchises of Ace Hardware.
- How do Ace Hardware franchises make money?
They make money as a retailer and wholesaler of home improvement products, paints, and hardware. Apart from this, they are also known to offer RV and marine, automotive, plumbing, organization and storage, home and decor products, and tools.