Visit our franchise video section.
America's #1 Franchise Directory, Trusted for Over 15 Years
Request More Information

Ace Hardware Franchise Cost & Fees

Date of Incorporation: 1928

Franchising Since: 1928

Headquarters: Oak Brook, Illinois


Business Description: : Ace Hardware Corporation is a wholesaler of hardware and related products. Ace has been engaged in the wholesale hardware business and has offered dealerships to retailers of hardware and related items since the organization in Illinois of the former Ace Hardware Corporation in 1928.


Franchise Offer: The franchise offered is for the operation of a retail hardware store under the name “Ace Hardware.” In the United States Ace operates as a retailer-owned cooperative. If the franchisee’s application for membership is approved, Ace will grant the franchisee membership in the cooperative upon the franchisee’s purchase of shares of stock. This membership entitles the franchisee to purchase merchandise and services from Ace.


Financial Assistance: The franchisor offers several financing assistance programs, see FDD for details. The franchisor is the lender for all these programs. In limited circumstances, the franchisor has formed joint ventures. Each venture is formed on a case-by-case basis. Ace is also listed on the Small Business Administration (SBA) Franchise Registry.


Training and Assistance: Ace's New Owner's Institute is a required training program offered at corporate headquarters in Oak Brook, Illinois. Subjects covered during this program typically include ACENET, Store Staffing, Recruiting/ Interviewing, Financial Management, Inventory Management, and Consumer Marketing. One of the major voluntary training programs is known as Essential Management Skills, and enrollment is open to both new and established Members. It consists of approximately three consecutive days of training operations on various leadership topics including time management, delegation skills and more. The franchisor also conducts Retail Training Seminars on various aspects of retail operations on an occasional basis at locations convenient to the various marketing areas in which members are located.


Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other member stores, competitive brands, and/or from other channels of distribution.


Term of Agreement and Renewal: There is no fixed term for the franchise agreement and therefore there are no fixed terms for renewal or extension.


Obligations and Restrictions: It is the franchisor’s general policy not to grant a Membership unless the owner or one of the principal owners of the business participates personally and directly in its operation. The franchisor does not currently place any restrictions or limitations on whom the franchisee may hire as managers, supervisors or other personnel to run the business. The franchisor does not restrict the types of goods and services that you may offer with some exceptions.

 

Estimated Number of Units: 4,755

 

Investment Tables:

Initial Investment:

Start-Up Business - Leased Premises

Name of Fee Low High
Initial Franchise Fee-Processing Charge $5,000 $5,000
Capital Stock Subscription $5,000 $5,000
Signage - Exterior Signage $2,500 $25,000
Signage - Interior Decor $7,000 $14,000
Leasehold Improvements - Decorating, Furniture and Fixtures ($8 per sq. ft.) $40,000 $120,000
Telephone and Other Equipment $10,000 $20,000
Computer $0 $80,000
Electronic Ordering System $0 $50,000
Rent - First 3 months’ rent $3,000 $45,000
Prepaid Expenses - Security Deposit, Dues, Permits, Subscriptions and other prepaid expenses $3,000 $15,000
Opening Inventory $150,000 $600,000
Initial Supplies $500 $2,500
Insurance $2,500 $20,000
New Investor Retail Training $0 $30,000
Additional Funds - Working capital for the first 90 days $15,000 $50,000
Total Estimated Initial Investment $243,500 $1,081,250

 

Start-Up Business – New Construction

Name of Fee Low High
Initial Franchise Fee-Processing Charge $5,000 $5,000
Capital Stock Subscription $5,000 $5,000
Signage - Exterior Signage $2,500 $25,000
Signage - Interior Decor $7,000 $14,000
Real Property Purchase Costs – Land $4,000 $200,000
Real Property Purchase Costs – Building $29,000 $240,000
Construction Costs, Fixtures, Decorating and other improvements $5,000 $250,000
Telephone and other equipment $10,000 $20,000
Computer $0 $80,000
Electronic Ordering System $0 $50,000
Prepaid Expenses - Security Deposit, Dues, Permits, Subscriptions and other prepaid expenses $3,000 $15,000
Opening Inventory $150,000 $600,000
Initial Supplies $500 $2,500
Insurance $2,500 $20,000
New Investor Retail Training $0 $30,000
Additional Funds - Working capital for the first 90 days $15,000 $50,000
Total Estimated Initial Investment $238,500 $1,596,250

 

Conversion

Name of Fee Low High
Initial Franchise Fee-Processing Charge $5,000 $5,000
Capital Stock Subscription $5,000 $5,000
Signage - Exterior Signage $2,500 $25,000
Signage - Interior Decor $7,000 $14,000
Decorating ($1 per sq. ft) $5,000 $15,000
Other Equipment $0 $10,000
Computer $0 $80,000
Electronic Ordering System $0 $50,000
Opening Inventory $0 $600,000
Initial Supplies $500 $2,500
Insurance $2,500 $20,000
New Investor Retail Training $0 $30,000
Total Estimated Initial Investment $24,500 $856,500

 

Other Fees:

Type of Fee Amount
Late Payment 0.77% of the past due bi-weekly billing statement balance.
Low Volume $100 per bi-weekly billing period if annual volume purchased is less than $200,000.
Minimum Freight Charge $115
Fuel Surcharge When the U.S. National Average price for diesel fuel exceeds $2.05 per gallon, a 0.50% fuel charge applies. The surcharge is adjusted (i.e., increased or decreased) weekly, 0.50% for every five-cent change (increase or decrease) in fuel price.
Core Retail Services $168 per month for all parent stores and $38 per month for each branch store.
Business Insurance Will vary depending upon coverage purchased. Estimated annual cost of required coverage: $2,500 - $20,000.
Ace Bank Card Program $35.00 annual fee per store. Additional point-of-service processing fees apply per credit card transaction; such fees vary by card processor (VISA, MasterCard, etc.) and by number of transactions processed.
Customer Check Verification Service (Telecheck) 1% of face value of the customer's check.
Annual Brand Assessment Store's first year: $5,000 flat fee per store. Subsequent years: 2% of prior year purchases subject to: Annual minimum: $3,000 per store Annual maximum: $10,000 per store
Ace Rewards Program $850 initial fee; $75 per month, per store thereafter. $0.28 per direct mail piece. Each store is required to participate in three Ace Rewards specific direct mail promotions.
Ace Gift Card Program $40 initial sign kit fee plus $0.50 per blank (unactivated) card stock. Additional point-of-service processing fees apply per credit card transaction; such fees vary by card processor (VISA, MasterCard, etc.) and by number of transactions processed. Cost will also vary depending upon card, displays and accessories purchased.
Regional Advertising Will vary depending on regional advertising programs.
Broadcast Media Services Free downloads from ACENET for copies of Ace radio and non-sale event TV ads that the franchisee may download or request from Ace and then customize for the store. The franchisee pays for all air-time fees charged by radio/TV stations he/she contracts with; these fees range from $1,000 to over $10,000 depending upon the media services chosen.
Group Preprint Program Price varies by page count and group participation. For example, group pricing for an eight tab is $42.00 per thousand, while individual store orders are $68.00 per thousand. See order form for specific pricing.
New Movers Program $0.201 per piece.
Monthly Sign Kit Program $125 per month for full kit; $40 for mini-kit.
Mystery Shopper Program For the enrollment/change, $46 per shop (in-store shops); $15 per shop (phone shops); $46 per shop (competitor shops). For the monthly bundle. $59 per month billed as $46 Mystery Shop and $13 survey fee each month after the shops or surveys are returned.
Customer Comment Cards $36 per pack of 100 stock (blank) cards. $3 per holder.
Customer Engagement Program $55 per month per participating store.
Visual Merchandising Services Price varies depending on the size of the store.
Store Planning Services Will vary depending on the nature of the project. $0.45 per square foot up to 15,000 square feet and $0.25 per square foot in excess of 15,000 square feet; $2,000 minimum charge.
Ace Rental Place Will vary depending upon the rental equipment offered and any optional signage selected.
Ace Business to Business (B2B)
Will vary depending upon the marketing material and signage purchased to promote business to business. The initial implementation fee is $99.
All-Pro Rewards $750 annual fee for parent store and $100 per branch store. Store pays Ace for the cost of redemption of points by the store's participating contractor-customers, in an amount equal to the value of 1% of the points redeemed.
Retail Loss Prevention Services Will vary depending upon equipment or services utilized. Estimated cost range per service: $30 - $3,500. Costs do not include expenses for meeting rooms, travel, lodging, meals or tax where applicable.
National Catalogues $29 per month for one set of catalogs per year (18 total). Additional sets are billed at a rate of $16 per month, per set.
Ace Catalogue on DVD One DVD is included with the $125 ACENET monthly service fee. Additional DVDs cost $15 per DVD.
Retail Financial Report $50 per copy to stores that do not participate in the survey.
Matching Funds Member contributes up to $2,400 annually for group advertising.
Costs and Attorney’s Fees Will vary under circumstances.
Indemnification Will vary under circumstances.
Additional Training The cost will vary depending upon the type of training, duration, and location of sessions. Price does not include expenses for meeting rooms, travel, lodging, meals, or tax where applicable.
Charitable Donations Will vary depending upon donations the franchisee may decide to make, if any, subject to a minimum total contribution of $20 if the franchisee chooses to make a contribution.

Year of FDD: 2013. The above information has been compiled from the FDD of Ace Hardware.

Franchise Direct's Disclaimer


 

Yes! Please Send Me Free, No-Obligation Information about Ace Hardware Corporation:

Contact Information

Full Name*

Email Address*

Phone Number*

Mailing Information

Street*

City*

State/Province*

Zip/Postal Code*

Country*

Investment Interest

Desired Investment*

Desired Location*

Additional Information (Optional)

Timeframe to Invest

Preferred Method of Contact

Best Time to Call

Alternate Phone Number

Comments? Questions?

The following items are in your Request List:

We can also forward your request to the companies you have added to your Request List. Please review the list below and confirm the companies you would like to contact.

The form is being processed. Please be patient. * required field.

Yes, send me updates on new franchise opportunities!

TRUSTe online privacy certification

Franchise Direct’s reputation for integrity in the franchise industry has been established over its 15 years in business. We NEVER sell your information or share it with anyone other than the companies from which you have requested information.

This advertisement does not constitute a franchise offering. Please read our terms and conditions for full details.

You may be interested in the following franchises...

Ace Hardware Corporation Ace is your ultimate power tool for successful business ownership! Check out the 7 reasons why this is the right bu... Minimum Cash Required:
$250,000.
Ace Hardware Corporation Business Opportunity.

Pinch A Penny Join the nation’s largest retail pool, patio and spa franchise and make a positive lifestyle change for a better fu... Minimum Cash Required:
$50,000.
Pinch A Penny Franchise.


Your Request List

You can add items by clicking the "Add to Request List" button or checkbox when you find something you're interested in.

You may add up to 15 items to your Request List

Your request list will follow you around the site.

When you are ready to complete your request for free information, click "Submit" in your Request List.

Why not get started by browsing our New Franchise Opportunities or Low Cost Franchise Directory?

You may only enter 15 items in your Request List.

To request information from your selected companies, just fill in the form and click "Submit".

OK, got it

Request Info From:

  •  

Your List is Empty

You can add items by checking the "Request FREE Info" boxes.

* indicates required field

Optional Information

The form is being processed. Please be patient.

 Join our mailing list!

Terms and conditions apply.

TRUSTe online privacy certification