Ace Hardware Franchise Cost, Revenue & Review 2026
- Investment
- $612K – $2.0M
- Disclosed sales
- partial, no system average
- SBA charge-off
- 13.4%
- on 863 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Ace Hardware franchise requires a total initial investment of $612K – $2.0M, including a $5K franchise fee. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 13.4% charge-off rate across 863 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored3 of 3 headline figures on this page cite a page of the filing.
Overview
- Investment
- $612K – $2.0M
- 44th pct Retail
- Avg gross sales
- N/A
- Outlet subset
- Royalty
- Set by a formula
- Units
- 5,250
- 44th pct Retail
- SBA charge-off
- 13.4%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $612K – $2.0M including a $5K franchise fee.
- RETURNSSales-weighted mean across all five printed retail formats of the 478 stores in the PPG Retail Financial Report: Express $2,117,668 (n=7), Convenience $2,935,511 (n=50), Core $3,061,641 (n=231), Super $5,521,303 (n=150), Home Center $10,756,255 (n=33), printed p.70. Ace publishes no system average, and the Core Hardware format alone — one of the five, about 30% below the all-format figure — is not one. The sample is voluntary: the 478 participants are 9.78% of domestic Ace branded stores.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). SBA loan charge-off rate of 13.4% across 863 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +97 franchised outlets in the latest year (173 opened, 76 closed); 65 signed but not yet open (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Ace Hardware Corporation
- Predecessor
- Ace Hardware Corporation (Illinois corporation organized in 1928)
- Prior franchisor entity
- Incorporated in
- Delaware
- HQ
- 2915 Jorie Boulevard, Oak Brook, Illinois 60523-2100
- Franchisor revenue
- $10.0B
- vs $9.5B prior year
Overview
About
Retailer-owned hardware cooperative; wholesaler of hardware products, paint, and related merchandise to member-owned retail hardware stores operating under the Ace or Ace Hardware name
- Headquarters
- Illinois
- Founded
- 1928
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 292% above the typical retail franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $5K | $5K |
| Working capital (3–6 mo) | $91K | $205K |
| Equipment, build-out, other | $516K | $1.8M |
| Total initial investment | $612K | $2.0M |
Source: Ace Hardware 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $612K – $2.0M
- Middle of category vs category
- Liquid capital req'd
- $91K – $205K
- Middle of category vs category
- Franchise fee
- $5K
- Top 40% of category vs category
- Royalty
- No traditional royalty; cooperative model. Annual Brand A…
- Ad fund
- Store’s first calendar year: $6,000 flat fee per store. S…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Initial Annual Brand Assessment: flat $6,000 (Q1-Q3 activation) or $12,000 (Q4 activation) |
| Inventory (initial) | $210K – $1.0M |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Ace Hardware is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Ace Hardware unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Sales-weighted mean across all five printed retail formats of the 478 stores in the PPG Retail Financial Report: Express $2,117,668 (n=7), Convenience $2,935,511 (n=50), Core $3,061,641 (n=231), Super $5,521,303 (n=150), Home Center $10,756,255 (n=33), printed p.70. Ace publishes no system average, and the Core Hardware format alone — one of the five, about 30% below the all-format figure — is not one. The sample is voluntary: the 478 participants are 9.78% of domestic Ace branded stores.
Reported for a subset of outlets rather than the whole system
- Item 19 type
- historical single-store sales data by retail-format segment (PPG Retail Financial Report), gross sales only, no net income
- Sample size
- 478 outlets
- vs category median 46 · large
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2024
Compared against 278 Retail brands
Item 19 · by group
What the filing does disclose
Item 19 of this FDD reports performance in more than one group. We publish no single average for this brand; the groups the filing does disclose are listed below, quoted from its own Item 19 table.
Each row below is quoted from the FDD's own Item 19 table. Gross sales are not profit.
Outlet subsetItem 19 detail
Sales-weighted mean across all five printed retail formats of the 478 stores in the PPG Retail Financial Report: Express $2,117,668 (n=7), Convenience $2,935,511 (n=50), Core $3,061,641 (n=231), Super $5,521,303 (n=150), Home Center $10,756,255 (n=33), printed p.70. Ace publishes no system average, and the Core Hardware format alone — one of the five, about 30% below the all-format figure — is not one. The sample is voluntary: the 478 participants are 9.78% of domestic Ace branded stores.
store format
| Segment | Sample (outlets) | Avg |
|---|---|---|
| Express Hardware Format (up to 3,500 sq ft) | 7 outlets | $2.1M |
| Convenience Hardware Format (up to 6,000 sq ft) | 50 outlets | $2.9M |
| Core Hardware Format (6,001-12,000 sq ft) | 231 outlets | $3.1M |
| Super Hardware Format (12,001+ sq ft) | 150 outlets | $5.5M |
| Home Center Format | 33 outlets | $10.8M |
vs Retail medians
How Ace Hardware Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5,250
- Opened
- 173
- Last reporting year
- Closed
- 76
- Terminated
- 71
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 1.4%
- Company-owned
- 268
- Corporate units in the system
- % franchised
- 95%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 71
- Reacquired
- 5
- Franchisor bought back
- Signed, not yet open
- 65
- 0.01 per open outlet · Item 20 Table 5
- Projected new
- 154
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 863
- Loan volume
- $578.7M
- Median loan
- $450K
- 50th percentile
- Charge-off rate
- 13.4%
- on 863 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 86.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 238
- Defaults
- 77
- Typical loan rate
- 6.2%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 4441
- Jobs supported
- 12,974
- 2.2 per loan
- Lender concentration
- 16%
- top lender's share
Borrower mix: 43% went to startups / new businesses, 57% to established operators
Vintage analysis
Ace Hardware charge-off rate by loan vintage
Top lenders financing Ace Hardware franchisees
Showing 3 of 238 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Ace Hardware from SBA 7(a) FOIA data.
- Principal loss rate
- 3.6%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.19%
- Avg chargeoff amount
- $267K
- Lender concentration
- 16.4%
- Job velocity
- 2.2 per $100K
- Startup risk premium
- +4.4pp
- Jobs supported
- 12,974
Top SBA lendersTop lender holds 16% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 142 | N/A | N/A | |
| 2 | 65 | N/A | N/A | |
| 3 | 57 | N/A | N/A | |
| 4 | 44 | N/A | N/A | |
| 5 | 22 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 86 | 9 | 15.5% |
| TXTexas | 78 | 8 | 19.0% |
| MIMichigan | 57 | 6 | 16.2% |
| GAGeorgia | 55 | 7 | 20.6% |
| OHOhio | 55 | 7 | 16.3% |
| WAWashington | 36 | 3 | 10.7% |
| AZArizona | 35 | 2 | 10.5% |
| COColorado | 35 | 0 | 0.0% |
| MNMinnesota | 29 | 1 | 5.3% |
| INIndiana | 27 | 4 | 22.2% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 13.4% — 16% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One pending consumer/franchise-fraud-adjacent suit against Ace and Ace Handyman-related defendants (Hessler); three concluded matters (Cathay Bank successor-liability settlement $1.1M total/$650K by Ace, Advanced Caregivers class-type fraud claims settled $25,000 per plaintiff, trademark dispute with unrelated Ace Handyman Services Inc settled $150,000); plus one collection action against a former member for unpaid amounts
Largest disclosed settlement: $1,100,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Litigation case detail5 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Elizabeth Hessler v. Ace Hardware Corporation, et al.
pendingThird-party plaintiff · filed 2025-09-10 · Circuit Court of Illinois, Cook County · 2025L011064
“Elizabeth Hessler v. Ace Hardware Corporation, et al. (Case No. 2025L011064, Circuit Court of Illinois, Cook County). On September 10, 2025, Elizabeth Hessler (“Hessler”) filed a consumer action against Ace, Ace Handyman Franchising, Inc.(“AHS Franchising”), Sidney W. Canchester d/b/a Ace Handyman Services Oak Park River Forest (“AHS Oak Park”), Anchor Court Ace Handyman Services a/k/a Anchor”Page 15 of the 2026 FDD, Item 3
Concluded (3)
Ace Handyman Services, Inc. v. Ace Hardware Corporation et al.
settledThird-party plaintiff · filed 2020-02-25 · 468th Judicial District Bexar County, Texas · 2020-CI-03722
“Ace Handyman Services, Inc. v. Ace Hardware Corporation et al., (Cause No. 2020-CI-03722, 468th Judicial District Bexar County, Texas). On February 25, 2020, Ace Handyman Services, Inc., a Texas corporation unrelated to Ace (“Ace Handyman Services”) filed a complaint and obtained a temporary restraining order against Ace Hardware Corporation, Ace Handyman Franchising, Inc., Ace Handyman”Page 16 of the 2026 FDD, Item 3
Outcome:“On April 16, 2020, the parties settled this matter for $150,000 allowing the immediate use of the ACE HANDYMAN SERVICES mark by Ace and the discontinuance of Ace and Ace Handyman Services by the Plaintiff.” (page 17)
Cathay Bank v. Ace Hardware Corporation, et al.
settledThird-party plaintiff · filed 2017 · Superior Court of the State California, County of Los Angeles, Eastern District · KC069647
“Cathay Bank v. Ace Hardware Corporation, et al. (Case No. KC069647, Superior Court of the State California, County of Los Angeles, Eastern District.) In February 2017, Cathay Bank (“Bank”) obtained several money judgments against Sentron International, Inc. (“Sentron”), a former Ace vendor, in the aggregate amount of $10,642,452, and had a receiver, Robb Evans & Associates LLC (“Receiver”)”Page 15 of the 2026 FDD, Item 3
Outcome:“On May 13, 2022, the parties settled this matter in consideration for the payment of $1.1 million to the plaintiffs, $450,000 of which was paid by co-defendant JMI, Inc. and $650,000 of which was paid by Ace Hardware.” (page 16)
Advanced Caregivers, LLC d/b/a Hialeah Ace Hardware and William Bloodworth v. Ace Hardware Corporation
settledBrought by a franchisee · filed 2012 · U.S District Court, Southern District of Florida (transferred to the Northern District of Illinois) · 12-20082-CIV-Williams
“Advanced Caregivers, LLC d/b/a Hialeah Ace Hardware and William Bloodworth v. Ace Hardware Corporation (Case No. 12-20082-CIV-Williams, U.S District Court, Southern District of Florida). In January 2012, this former member and its owner brought a civil action against Ace on behalf of themselves and a putative nationwide class alleging that Ace defrauded them in connection with their decision to”Page 16 of the 2026 FDD, Item 3
Outcome:“On July 26, 2016, all of the plaintiffs settled for $25,000 each and the case was dismissed with prejudice on July 27, 2017.”
Status not stated in the filing (1)
Ace Hardware Corporation v. Pickerel Development Corp.
Brought against a franchisee · filed 2025-07-14 · Hamilton County, OH · A 2503438
“Collection Cases Filed Against Former Members/Guarantors For Unpaid Merchandise, Services, Loans or Other Benefits: Name of Case Court Docket Number Date Filed Ace Hardware Corporation v. Pickerel Development Corp. Hamilton County, OH A 2503438 07/14/2025”Page 17 of the 2026 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Territory type | No territory protection |
|---|---|
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 5 |
| Mandatory arbitration | Yes |
| Governing law | Illinois |
| Litigation count | 5 |
View Item 3 litigation summary
One pending consumer/franchise-fraud-adjacent suit against Ace and Ace Handyman-related defendants (Hessler); three concluded matters (Cathay Bank successor-liability settlement $1.1M total/$650K by Ace, Advanced Caregivers class-type fraud claims settled $25,000 per plaintiff, trademark dispute with unrelated Ace Handyman Services Inc settled $150,000); plus one collection action against a former member for unpaid amounts
Items 10, 11
Training & Operations
- Ongoing training
- Optional
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Epicor Software Corporation (or other designated vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Epicor Software Corporation (or other designated vendor)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ace Hardware franchise?
The total investment to open a Ace Hardware franchise ranges from $612K – $2.0M, with an initial franchise fee of $5K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ace Hardware franchise owners earn?
Item 19 of the Ace Hardware FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Ace Hardware?
Ace Hardware is franchised by Ace Hardware Corporation. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Ace Hardware FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Ace Hardware FDD and qualifies whose outlets they describe.
What is Ace Hardware's franchise failure rate?
Based on SBA 7(a) loan data, Ace Hardware has a charge-off rate of 13.4% across 863 loans, meaning 13.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Ace Hardware franchise locations are there?
As of their most recent FDD filing, Ace Hardware has 5,250 total units in the United States, including 4,982 franchised units and 268 company-owned units. 173 new units were opened in the latest reporting year.
Is Ace Hardware a good franchise to buy?
FranchiseVerdict rates Ace Hardware as a A-grade franchise with a verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.