How to Start Ace Hardware Franchise in USA ?

Ace Hardware Franchise in USA Overview

Hardware stores have long been seen as an essential retail business. Not only for consumers, but it also offers appreciable returns to owners. In fact, the revenue from hardware business increased from $29.36 billion in 2019 to $35.39 billion in 2020 in the United States, which suggests it’s high time to invest in this emerging business model.  

At the same time, the good news for entrepreneurs looking for a highly profitable business is that franchise opportunities abound in the hardware business, and the Ace Hardware Corporation, the oldest Hardware company in the USA, offers a tremendous opportunity for those looking to build a profitable and lasting business. 

So, do you intend to own an Ace Hardware franchise in USA? But still unclear about the application process, fees & investment. Don’t worry; In this article, we’ll review Ace Hardware’s franchise model, financial requirements, and application process. 

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Brief History & Future Prospects of Ace Hardware Franchise

Richard Hesse, E. Gunnard Lindquist, Frank Burke, and Oscar Fisher started the Ace Hardware company in 1924. As the business grew and established a solid reputation for itself, it started franchising. 

The plan of becoming a cooperative of retailers developed into a viable opportunity. Currently, there are more than 5858 Ace hardware stores open worldwide. Additionally, Ace is the world’s biggest retailer-owned appliance cooperative. 

They provide fantastic prospects for people who wish to create a successful and long-lasting business. The company was started with a name – Ace Stores, which was renamed lately.  

The store’s popularity skyrocketed after World War II, with sales soaring to more than tripled between the late 1940s and 1959. 

Additionally, Ace became a retailer-owned cooperative after Richard Hesse, its longtime president and founder, departed in 1973 and sold the company to its retailers. Its wholesale sales reached their high in 1985 at $1 billion and in 2015 at $5 billion. 

Today, Ace has stores in China, Panama, and the United Arab Emirates, in addition to its 17 US distribution centers. At the same time, the franchisor generates nearly $16 billion in sales. 


Estimated Initial Investment  $292,000- $2,119,230 
Franchise Fee  $5,000 
Royalty-Fee  N\A 
Liquidity Capital $250,000 
Area Requirement  N\A 
Total Outlets  5858 Stores 

Investment Procedure for Ace Hardware Franchise in USA

There are three ways to become a member of the ever-growing Ace Hardware family: Owning An Ace Store, Converting Your Existing Store to Ace, and Adding Ace to your Grocery Store.  

Open A New Ace Store 
The best way to grab a highly profitable business opportunity is to open a New Ace Hardware Corporation Franchise in USA. The initial cost to set up a new Ace Hardware Corporation Franchise in USA is estimated between $292,000- $2,119,230. 

Each Ace Hardware store offers significant revenue, features, and outstanding support. In most cases, Ace stores compete with big boxes by offering exceptional service and a convenient hardware store experience. 


  • No Franchise Fees  
  • No Royalty Fees   
  • You Own the Brand 

Converting Existing Store to Ace 
When you convert your store to Ace Hardware, the company creates a success road map for you. Rewards are based on Discovery-recommended products and amounts and vary by shop type and size. In addition, the company rewards in the form of credit rather than money or a loan.

Additionally, Ace offers a team of professionals who can help you convert and manage a profitable business. Franchisees benefit from the assistance and expertise of a committed and knowledgeable staff that offers in-depth training to assist you in successfully entering the “DIY” consumer market. 


  • Additional product assortment incentive opportunities 
  • Upfront incentives to get you started! 
  • Free labor to bin-tag the entire store! 
  • Free Ace Paint/Clark & Kensington opening stock order 

Add Ace To Your Grocery Store 
If you’re an owner of a successful grocery store, Ace Hardware is giving you a chance to join its network by adding Ace products to your store.  


  • Free Initial Inventory 
  • Attracts new high-margin customers 
  • No Franchise Fees  
  • No Royalty Fees   

Estimated Cost Of Setting Up

As a profitable business opportunity, Ace Hardware Corporation has emerged among the top choices of entrepreneurs. However, the initial cost may have a great impact on your decision.  

The cost of setting up a new franchise or converting an existing store varies depending on various factors. After analyzing the detailed FDD of the company, below is the breakdown of all the costs, fees & charges.

Estimated Initial Investment for Opening

The cost for opening a new Ace hardware franchise varies whether you’re opening a store on leased premises or constructing a new building. Here’s a detailed overview of the initial cost in each situation.  

New Construction

Initial Investment/Cost Maximum Minimum 
Initial Franchise Fee – Affiliation Fee  $5,000  $5,000  
Initial Brand Assessment (advertising)  $6,000  $12,000 
Capital Stock Subscription  $5,000  $5,000  
Interior Decor  $15,000  $32,000
Exterior Signage  $5,000  $35,000 
Real Property Purchase Costs – Building$60,000$240,000 
Real Property Purchase Costs – Land$15,000  $200,000
Fixtures, Decorating, Construction Costs, and Other Improvements  $24,000  $250,000
Telephone and other Equipment  $10,000  $20,000  
Prepaid Expenses – Permits, Subscriptions, Security Deposit, Dues, and other Prepaid Expenses  $3,000  $15,000 
Computer System with Point-of-Sale (Hardware/Software)  $45,000$85,000  
Opening Inventory  $150,000  $1,000,000
Insurance  $2,500  $30,000
Initial Supplies  $500$2,500
Additional Funds – Working capital for the first 3 months$15,000$150,000 
New Investor Retail Training  $0 $37,730 
ESTIMATED TOTAL  $361,000  $2,119,230

Leased Premises

Initial Investment/Cost MinimumMaximum
Initial Franchise Fee – Affiliation Fee  $5,000  $5,000  
Initial Brand Assessment (advertising)  $6,000  $12,000  
Capital Stock Subscription  $5,000 $5,000 
Leasehold Improvements – Decorating, Furniture and Fixtures ($9 per sq. ft.)  $27,000  $135,000 
Signage – Exterior Signage  $5,000  $35,000 
Telephone, In-store Communications and Other Equipment$10,000$20,000  
Signage – Interior Decor $15,000$32,000  
Computer System with Point-of-Sale (Hardware/Software)  $45,000$85,000 
Rent – First 3 months  $3,000$60,000
Prepaid Expenses – Permits, Subscriptions, Security Deposit, Dues, and other Prepaid Expenses  $3,000 $15,000
Opening Inventory $150,000 $1,000,000 
Initial Supplies  $500$2,500  
New Investor Retail Training$0$37,730 
Additional Funds – Working capital for the first 90 days  $15,000 $150,000 
Insurance  $2,500$30,000 
ESTIMATED TOTAL  $292,000$1,624,230 

Estimated Initial Investment for Converting Existing Store To Ace

Initial Cost Maximum Minimum 
Capital Stock Subscription  $5,000  $5,000  
Exterior Signage  $5,000  $35,000 
Initial Brand Assessment (advertising) $6,000 $12,000  
Telephone, In-store Communications and Other Equipment  $0  $10,000
Interior Decor  $15,000  $32,000 
Computer System with Point-of-Sale (Hardware/Software)$8,000  $85,000
Initial Supplies  $0  $2,500
Opening Inventory  $0  $600,000 
Insurance  $0  $30,000 
New Investor Retail Training $0  $37,730
Decorating – Decorating. Furniture and Fixtures ($1 per sq. ft)  $3,000 $15,000  
ESTIMATED TOTAL  $42,000  $864,230

Application Process for Ace Hardware Franchise in USA

The process of applying for a new Ace Hardware Corporation Franchise in USA is not as daunting as it seems. Additionally, the franchisor team’s support makes the process even more convenient. Follow these simple steps to apply for the Ace Hardware franchise:  

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Preview & Qualification

The first step is to determine whether you’re a qualified candidate or not. The company has set stringent eligibility criteria for selecting new applications. Here are some eligibility criteria set by the company: 

  • Hard worker 
  • Management organization skills 
  • Good communication skills and sales skills 
  • Track Record of Success 
  • Leadership Quality 
  • Must know about marketing 

Market Research

This is the most crucial step and may have a more significant impact on your long-term success. It includes market identification, site selection, sale forecast, and proforma.  

Submit Your Application

Firstly, read the company’s Franchise Disclosure Document (FDD) and send a proposal to the company by submitting an application form available on the website.  

Prepare For Store Development

Once our application gets processed and selected by the Franchisor, the concerned team will contact you. Attend a meeting with them and understand all the terms, conditions, and your duties.  Following that, prepare for your store development, which includes Store planning, opening stock order, and store set-up.  

Store Opening & Training

After all the hard work, it’s time to enjoy the success. Get ready for the store opening and the grand opening event.  

Type Of Training Offer To Its Franchisees

The company offers virtual, in-person, and personal training at its headquarters in Oak and a few other regional locations. Before opening the store, the new investor who does not already own an Ace Hardware franchise must complete the Base Camp New Investor program. 

For investors’ training, there are more than 1600 courses accessible. In addition, the investors can schedule training sessions for certain stores. The firm also hosts training sessions and workshops on subjects of interest to store managers and owners twice a year. The training program will help franchises in:  

  • Purchasing and inventory strategies 
  • Implementing helpful customer service 
  • Hiring, training, and managing employees 
  • Effective store marketing techniques 
  • Strategies and management of each revenue center 
  • Financial management and “back office” procedures 

Privileges Of Owning This Franchise

The company’s business model allows franchisees to run Ace stores with confidence by providing the following resources and competitive advantages: 

  • Low cost of goods for increased margins & greater profitability 
  • Stock ownership 
  • Strategic and business management support 
  • Retail Operations and Marketing support 
  • Operational flexibility 
  • Exclusive licensing rights 
  • Globally recognized brand 
  • New store incentives – up to $330,000* 
  • No royalty fees and a portion of the company profits are distributed back to the retail owners each year 
  • Independent ownership with dedicated training & support 

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Conclusion for Ace Hardware Franchise in USA

The Ace Hardware corporation’s business strategy is based entirely on adaptability. As a result, the company offers a basic support system that you can use to manage your business in your particular local market. 

The Ace Hardware franchise Team, which consists of owners, store employees, retail support staff, and corporate staff, numbers more than 80,000 people. Ace International has more than 130 individuals who are entirely responsible for providing services to international retailers.  

Owning and running an Ace Franchise provides a number of distinct benefits, including shared inventions, corporate marketing knowledge, cutting-edge retailing design, a robust global supply chain, etc. 


Who Owns Ace Hardware Corporation?

How Many Ace Hardware Stores Are There In The United States?

What Is The Cost Of Buying An Ace Hardware Corporation Franchise In USA?

Do Ace Hardware Offer A Franchise?

Is It Worth It To Own Ace Hardware Corporation Franchise In USA?

What Affects The Earnings of Ace Hardware Corporation Franchise In USA?

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Is Ace Hardware Corporation Offer Franchise opportunities Internationally?

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