Ace Hardware
Retail & Consumer Goods · Specialty Retail
- Active units
- 4,885
- Royalty
- 0.0%
Franchised, year-end 2024
of weekly Net Sales
About Ace Hardware
Operating as a retailer-owned cooperative, Ace Hardware provides independent business owners with access to a distribution network and supply chain. The brick-and-mortar stores serve local homeowners and professional contractors with a focus on neighborhood-based maintenance and repair needs. Each location is independently operated, allowing owners to customize their product mix to meet the specific requirements of their community. This model functions as a shareholder-based partnership rather than a traditional royalty-driven franchise system.
Key terms
- Franchise fee
$5k
- Conversion from other wholesaler
Affiliation fee waived if you convert a retail hardware store affiliated with another wholesaler to an Ace Hardware store
- Purchase and convert
Affiliation fee waived if you purchase a retail hardware store affiliated with another wholesaler and convert it to Ace
- Family ownership change
Affiliation fee waived for change of ownership among family members of an existing Ace Hardware store
- Brand fund
2.0% of Net Sales
- Veteran discount
100.0% off franchise fee — Affiliation fee waived for veterans/active duty under the Veterans’ Incentive Program
Brand Percentile Rankings
Growth
- Total locations4885
Franchised units open at year-end
- New openings210
Gross new units opened during the calendar year
- 1-year unit growth rate2.6%
Net unit growth versus prior year
- 3-year unit CAGR2.6%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio2.5×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)—
Per FDD Item 19 disclosure
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.3M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open—
Midpoint of average time from agreement to opening
- Royalty rate0.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio—
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Location footprint
Showing 736 of 967 mapped locations
Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.