New owners can expect to pay a $5,000 franchise fee for the rights to open their own location, but it costs anywhere from a total of $272,500 to $1,574,230 to open an Ace Hardware franchise, assuming this is a new location. There is no royalty fee with an Ace Hardware franchise; instead, store owners are distributed a percentage of overall profits.
How much does it cost to open Ace Hardware franchise?
New owners can expect to pay a $5,000 franchise fee for the rights to open their own location, but it costs anywhere from a total of $272,500 to $1,574,230 to open an Ace Hardware franchise, assuming this is a new location.
How much money does Ace Hardware make a year?
Today the Ace Hardware family of stores generates nearly $16 billion in sales (versus approximately $100 billion in revenue for Home Depot). Ace Hardware Franchise Cost / Initial Investment / Ace Hardware Franchise Income
How much does it cost to start a franchise business?
Estimated Initial Investment for a Start-Up Business – New Construction Name of Fee Low High Initial Franchise Fee – Affiliation Fee $5,000 $5,000 Capital Stock Subscription $5,000 $5,000 Initial Brand Assessment (advertising) $6,000 $12,000 Exterior Signage $5,000 $35,000 13 more rows ...
How much does it cost to add an ACE store?
Grocery stores that add an Ace store as a store within a store (non-Epicor POS) must use AppCard. There is a one-time set-up fee of $1,000 and a weekly AppCard fee of $75. $50 initial sign kit fee plus $0.25 per blank (inactivated) card stock.
Is Ace Hardware franchise profitable?
Additionally, the sum of revenue from Ace Hardware's cooperative member stores and company-owned retail stores increased at an annualized rate of 6.5% to $8.5 billion over the past five years. By 2018, due to this continuous success, the company's operating income.
How much profit does an Ace Hardware make?
Retail gross profit for fiscal 2020 was $334.4 million, an increase of $107.7 million from fiscal 2019. The retail gross margin percentage was 44.5 percent of retail revenues in fiscal 2020, down slightly from 44.7 percent in fiscal 2019.
Are Ace stores franchises?
Ace Hardware is a retailer-owned cooperative where independent owners operate the majority of locations, even though it is sometimes considered a franchise system, Ace “franchisees” or retailers not only own their individual stores, but also serve as shareholders in the organization.
Who owns the most Ace Hardware franchises?
The Melnicks -- Jeremy, 43, and dad Les, 67 -- own six of the 4,794 Ace Hardware stores that make up the country's largest retail cooperative outside the grocery sector.
Is Ace Hardware in financial trouble?
On a worldwide basis, Ace added 206 stores in fiscal 2021 and cancelled 86, bringing the worldwide store count to 5,583 at the end of fiscal 2021. Wholesale gross profit for the three months ended January 1, 2022 was $187.7 million, a decrease of $15.8 million from the fourth quarter of 2020.
Is owning a hardware store profitable?
Owning a hardware store can be a profitable business venture. This is because hardware shops typically have high margins. This means that the store can sell products at a higher price than it paid for them, and thus make a profit.
What is the franchise cost for Ace Hardware?
New owners can expect to pay a $5,000 franchise fee for the rights to open their own location, but it costs anywhere from a total of $272,500 to $1,574,230 to open an Ace Hardware franchise, assuming this is a new location.
Does China own Ace Hardware?
Ace Hardware Corporation is an American hardware retailers' cooperative based in Oak Brook, Illinois, United States.
Who is the CEO of Ace Hardware?
John Venhuizen (Mar 31, 2013–)Ace Hardware / CEO
Is Ace Hardware owned by Lowes?
One of North America's most complicated retail relationships is coming to an end. Lowe's and Ace, two fierce home improvement competitors in the United States, are parting ways in Canada, where they have played on the same team since the Lowe's acquisition of RONA in 2016. Peavey Mart operates in Western Canada.
Did Ace Hardware get bought out?
Frattallone's Ace Hardware, a retail fixture in the Twin Cities for decades, has been acquired by a Tennessee retail group. Trade journal Hardware Retailing has a report on the deal, under which Central Network Retail Group, a unit of Orgill Inc. will take over the 22 locations of Frattallone's.
How many Ace stores are there in the US?
Ace Hardware Corporation is a dealer-owned cooperative that serves more than 5,000 retail outlets across the United States and more than 400 stores in 62 other countries around the world.
How to become an Ace Hardware franchise owner?
Also you should choose required concept - or open a new store, or convert your store to Ace, or add Ace to your grocery store. Assess market availability. You will want to look at the market availability for Ace Hardware ...
How many locations does Ace have?
It first reached $1 billion in wholesale sales in 1985 and $5 billion in 2015. As of 2016, it has over 4,800 locations in 60 countries.
How many Ace distribution centers are there?
Ace operates 17 distribution centers in the United States, and additional distribution facilities in China, Panama, and United Arab Emirates.
When did Ace Hardware change its name?
Founded in 1924 as "Ace Stores", the company changed its name to "Ace Hardware Corporation" in 1931. It grew dramatically following World War II, more than tripling its sales between the late 1940s and 1959.
How much does it cost to open an Ace Hardware store?
New owners can expect to pay a $5,000 franchise fee for the rights to open their own location, but it costs anywhere from a total of $272,500 to $1,574,230 to open an Ace Hardware franchise, assuming this is a new location.
How many Ace Hardware stores are there?
There are currently more than 5,000 independently owned Ace Hardware stores operating across the globe (though most are in the United States), making Ace the largest retailer-owned appliance cooperative in the world.
When did Ace become a cooperative?
As the company progressed and built a reputable name for itself, the idea of Ace becoming a retailers' cooperative grew into a realistic opportunity. In 1976, Ace hardware stores were officially on the market for entrepreneurs looking to invest in a promising association.
Does Ace Hardware have incentives?
Ace offers special incentives for conversions, depending on the size, setup, and product mix of the store in question. A final option is to add an Ace Hardware as an extension to an existing independent grocery business, to take advantage of existing foot traffic.
Is there a royalty fee for Ace Hardware?
There is no royalty fee with an Ace Hardware franchise ; instead, store owners are distributed a percentage of overall profits. An alternative approach is to convert an existing hardware retail store into an Ace Hardware location.
What is Ace Rental Place?
Franchisees may offer rental services from their Ace store under the name “Ace Rental Place.”. Franchisees may also own and operate an existing separate business, such as a grocery store, and add an Ace Hardware store to or within the existing business. The franchisor refers to this as its “grocery format.”.
What is franchising training?
The franchisor periodically schedules training sessions and seminars for individual retailers and retailer groups. The franchisor also provides training sessions and workshops on topics of interest to store owners and managers twice a year, at its spring and autumn fall conventions.
What is Ace Hardware?
Franchise Description: The franchisor, Ace Hardware Corporation, is a wholesaler of hardware products, paint and other merchandise. 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, the franchisor will grant franchisees membership in the cooperative under the terms of the membership agreement and upon their purchase of shares of the franchisor’s stock. This membership entitles the franchisee to purchase merchandise and services from the franchisor. Franchisees may offer rental services from their Ace store under the name “Ace Rental Place.” Franchisees may also own and operate an existing separate business, such as a grocery store, and add an Ace Hardware store to or within the existing business. The franchisor refers to this as its “grocery format.” Ace Hardware franchisees may not offer handyman services or other in-home services under any Ace trademark unless they have purchased a separate franchise from Ace Handyman Franchising, Inc. (the franchise is called Ace Handyman Services).
Is Ace a franchise?
In the United States Ace operates as a retailer-owned cooperative. If the franchisee’s application for membership is approved, the franchisor will grant franchisees membership in the cooperative under the terms of the membership agreement and upon their purchase of shares of the franchisor’s stock.
Where is franchisor training located?
Training Overview: The franchisor’s retail training department develops and delivers online training, virtual classroom training, and in person training conducted at its headquarters in Oak Brook, Illinois, as well as at selected regional locations, in stores and at its annual conventions.
Does a franchisor have to hire a manager?
The franchisor does not currently place any restrictions or limitations on whom franchisees may hire as managers, supervisors or other personnel to run the business. The franchisor generally does not restrict the types of goods and services that franchisees may offer. There are a few exceptions detailed in the FDD.
Can franchisees compete with other franchisees?
Franchisees may face competition from other member stores, competitive brands, and/or from other channels of distribution. The franchisee’s membership is granted for the specific location of the store as stated in the Membership Agreement (non-branded) and Ace Brand Agreement.
