Ace Hardware franchise
Ace Hardware is a hardware retailer owned by its store owners as a cooperative: owners become members and buy shares instead of paying a royalty. Stores sell tools, paint, hardware and garden goods, and can add rental services under the Ace Rental Place name. At the end of 2024 there were 5,144 Ace Hardware locations in the US, 4,885 franchised and 259 company-owned.
- Cost to open
- $604K–$2M
- Franchise fee
- $5,000
- Royalty
- None
- Locations, 2024
- 5,144+345 in 3 yrs
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Company snapshot
- Franchisor based in
- Oak Brook, Illinois
- Agreement length
- No fixed term
- Territory
- No exclusive territory
- Financing
- Some financing offered
From Ace Hardware Corporation’s 2025 filing.
How much a Ace Hardware franchise costs
Opening a new 3,000 to 12,000 sq. ft. Ace Hardware store costs an estimated $603,850 to $2,001,550. That covers the franchise fee and everything else needed to open, through the first months of working capital.
Source: Ace Hardware Corporation, 2025 filing, page 29
Ace Hardware franchise fee
The franchise fee is $5,000, charged as an affiliation fee (waived for conversions and qualifying veterans), plus a $5,000 stock subscription. You pay it when you sign the franchise agreement.
Source: Ace Hardware Corporation, 2025 filing, page 16
Royalty and ongoing fees
| Royalty | No royalty is listed. Members pay bi-weekly statements for merchandise, freight and program fees. |
|---|---|
| Brand or marketing fund | 77% of gross sales |
Source: Ace Hardware Corporation, 2025 filing, page 20
Sales and earnings
Shares figures Ace Hardware publishes sales or earnings figures for its locations: it reports 2023 store results voluntarily supplied by 689 reporting stores. The full tables, with notes on which locations are counted, are in its filing.
Source: Ace Hardware Corporation, 2025 filing, page 72
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2022 | 4,645 (+105) | 222 | 53 |
| 2023 | 4,759 (+114) | 235 | 76 |
| 2024 | 4,885 (+126) | 259 | 84 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
Source: Ace Hardware Corporation, 2025 filing, page 74
How Ace Hardware compares
Of the 16 retail franchises on this site, Ace Hardware is the 15th cheapest to open and the 3rd largest by number of locations.
| Measure | Ace Hardware | Typical retail |
|---|---|---|
| Cost to open, low end | $604K | $231K |
| Closed or left per year | 1.5% | 3.4% |
| Change in franchised locations, 3 yrs | +7.6% | +7.2% |
| Shares earnings figures | Yes | 15 of 16 |
Typical is the median across the 16 brands in retail franchises.
Other retail franchises
Ace Hardware franchise questions
Does Ace Hardware help with financing?
Yes, in some cases. Ace Hardware may finance part of the cost, such as the franchise fee, for qualified buyers; terms are in its filing.
Do Ace Hardware franchisees get a protected territory?
No. Ace Hardware grants the right to run one location but no exclusive area, so another Ace Hardware can open nearby.
How long is a Ace Hardware franchise agreement?
The initial term is no fixed term. Renewal is usually possible if you're in good standing, often for a fee and a remodel.
Is Ace Hardware growing or shrinking?
Over the last 3 years 558 franchised locations opened and 213 closed or left, a net change of +7.6%. About 1.5% of locations closed or left each year. That is below the 3.4% typical for retail franchises.
How does Ace Hardware compare with other retail franchises?
Of the 16 retail franchises here, Ace Hardware is the 15th cheapest to open (low end $604K against a $231K median) and the 3rd largest by number of locations.
Does Ace Hardware say how much franchisees make?
Yes: it reports 2023 store results voluntarily supplied by 689 reporting stores. Your results can differ; the filing explains which locations are counted.
Where is Ace Hardware based?
Ace Hardware Corporation is based in Oak Brook, Illinois.