Ace Hardware franchise research

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Investment sourceFDD p.29 ↗

Franchise fees and ongoing costs

Franchise fee

$5,000 to $10,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

No traditional royalty; Ace is a retailer-owned cooperative wholesaler. Members instead pay various recurring fees (see other_notable_recurring_fees).

Marketing contribution

Not captured

Technology fee

Computer hardware/software for POS: $35,000-$75,000 initial; ongoing maintenance estimated at $700/month, plus $7.50 per payment device/month if using Epicor POS for transactional security.

Other fees

Core Retail Services $315.25/mo (parent store) + $131.50/mo per branch store, +2.5%/yr; Annual Brand Assessment (2% of prior-year purchases after first year, $6,000 flat in first year); Ace Rewards Program $850 initial + $75/mo per store

Working capital (FDD Item 7)

$90,000 - $205,000 working capital for the first 90 days of operation (start-up table; covers inventory, payroll, and market expenses).

Fees sourceFDD p.20 ↗

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Investment sourceFDD p.29 ↗

Franchise fee sourceFDD · page not captured ↗

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median annual gross sales volume, by retail format, from the 2023 Retail Financial Report (RFR)

Reporting period

2023 (data as of December 31, 2023, prepared by Profit Planning Group)

Sample

689 Reporting Stores (14.3% of total domestic Ace-branded member stores as of 12/31/2023), voluntarily reporting single-store data; broken into 5 formats: Express (13 stores), Convenience (83), Core (343), Super (194), Home Center (56)

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Item 19 performance sourceFDD p.72 ↗

Unit growth: Item 20

Reporting year

2024

Scope

franchised outlets

Starting outlets

4759

Year-end outlets

4885

Net change

+126

Derivation

ending minus starting outlets

Openings

210

Terminations

65

Non-renewals

0

Other closures

0

Reacquisitions

19

Transfers

112

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

Unit growth sourceFDD p.74 ↗

SBA loan history

Loan activity

273 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$685,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

111 loans

Historical charge-off share

6.10%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

18 / 295

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Median SBA loan sourceSBA data · Jun 30, 2026 ↗

Questions before you invest

How much does Ace Hardware franchise cost?

start-up business, leased premises: $603,850 to $2,001,550; conversion store: $134,600 to $1,229,000 These are format-specific estimates, not a guaranteed cash requirement. Franchise fee: $5,000 to $10,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review..

Investment sourceFDD p.29 ↗

Franchise fee sourceFDD · page not captured ↗

How much do Ace Hardware owners make?

Owner income is not captured. Gross sales and EBITDA are not owner pay. Item 19 metric: Average and median annual gross sales volume, by retail format, from the 2023 Retail Financial Report (RFR). Sample: 689 Reporting Stores (14.3% of total domestic Ace-branded member stores as of 12/31/2023), voluntarily reporting single-store data; broken into 5 formats: Express (13 stores), Convenience (83), Core (343), Super (194), Home Center (56). Period: 2023 (data as of December 31, 2023, prepared by Profit Planning Group).

Item 19 performance sourceFDD p.72 ↗

What's the SBA charge-off rate for Ace Hardware?

6.10%; numerator / denominator: 18 / 295. Historical 7(a) FY2010-2019 approvals; CHGOFF / (PIF + CHGOFF + EXEMPT) × 100, snapshot 2026-06-30. This is not a franchise failure probability. Median SBA loan: $685,000; window: FY2023-FY2026 YTD through 2026-06-30; sample: 111 loans. Median financing is not total investment.

SBA loans sourceSBA data · Jun 30, 2026 ↗

Median SBA loan sourceSBA data · Jun 30, 2026 ↗