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Ace Hardware Franchise Opportunities - History

Chicago’s Richard Hesse, E. Gunnard Lindquist, Frank Burke and Oscar Fisher founded the Ace Hardware organization in 1924. As the company progressed and built a reputable name for itself, the idea of Ace becoming a retailers' cooperative grew into a realistic opportunity. In 1976, Ace hardware stores were officially on the market for entrepreneurs looking to invest in a promising association. There are currently more than 5,000 independently owned Ace Hardware stores operating across the globe (though most are in the United States), making Ace the largest retailer-owned appliance cooperative in the world. Today the Ace Hardware family of stores generates nearly $16 billion in sales (versus approximately $100 billion in revenue for Home Depot).

Ace Hardware Franchise Cost, Requirements And Franchise Profit

To become an Ace Hardware franchise owner, franchisees must have $250,000 in liquid capital, with a minimum net worth of at least $400,000. New Ace Hardware franchise owners can expect to pay a $5,000 franchise fee for the rights to open their own Ace Hardware franchise location, but it costs anywhere from a total of $272,500 to $1,574,230 to open an Ace Hardware franchise, assuming this is a new location. There is no royalty fee with an Ace Hardware franchise; instead, store owners are distributed a percentage of overall profits.

An alternative approach is to convert an existing hardware retail store into an Ace Hardware franchise location. Ace reports that converted stores typically experience an 11% lift in retail sales, 12% increase in gross margins, and a 24% boost in gross profits post conversion. Ace offers special incentives for conversions, depending on the size, setup, and product mix of the store in question.

A final option is to add an Ace Hardware as an extension to an existing independent grocery business, to take advantage of existing foot traffic. There are over 200 Ace Hardware + Grocery combination franchises across the United States. This option requires no franchise fees and no royalties. In addition, Ace will supply free initial inventory.