Ace Hardware Painting Services
Bottom line
- Total investment $89K – $153K including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 1259 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Ace Hardware Painting Services unit return on the cash you put in?
Unlevered ROIC · per unit
59%
In Yale's "attractive" band (30–60%)
Overview
About
Ace Hardware Painting Services franchisees operate residential and commercial painting operations under the Ace Hardware brand umbrella, leveraging the parent company's retail distribution network and brand recognition. Day-to-day activities include managing painting crews, scheduling jobs, sourcing materials through Ace locations, customer acquisition, and quality control. Franchisees assume full operational responsibility while paying 6% royalties on gross revenues to corporate.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 20 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Micro-system with undisclosed financials, parent company litigation involving fraud allegations, unclear growth potential, and going concern questions makes this a high-risk investment unsuitable for most franchisees.
Score breakdown · what drove the 64 / 100 rating
- 01MINOROnly 3 operating units with unknown growth trajectory suggests minimal system traction and high failure risk
- 02HIGHParent company litigation history includes fraud and disclosure violation allegations, creating reputational and legal exposure
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ability to validate ROI on $89k-$153k investment
- 04MINORHigh royalty burden at 6% with no performance benchmarks or profitability thresholds for franchisees
- 05HIGHGoing Concern status as 'False' indicates potential financial instability at corporate level
- 06MEDExtremely small franchise base (3 units) with 10-year commitment creates concentration risk and limited peer support
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
24 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Ace Hardware Painting Services · FDD (2024) PDF