Do it Best Franchise Cost, Revenue & Review 2026
- Investment
- $853K – $1.6M
- Disclosed sales
- not disclosed
- SBA charge-off
- 17.4%
- on 95 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Do it Best is a hardware and home-improvement retail franchise operating within a member-owned cooperative. Franchisees run independent hardware stores, tapping the co-op's bulk purchasing and supplier network while serving local DIY and contractor customers.
FranchiseVerdict summary · 2026
A Do it Best franchise requires a total initial investment of $853K – $1.6M, including a $9K franchise fee. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 17.4% charge-off rate across 95 loans[1]. FranchiseVerdict grade: B (Above average), 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 scored2 of 3 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $853K – $1.6M
- 45th pct Retail
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 4,053
- 44th pct Retail
- SBA charge-off
- 17.4%
- % 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 $853K – $1.6M including a $9K franchise fee.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 66/100 (higher is better). SBA loan charge-off rate of 17.4% across 95 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +134 franchised outlets in the latest year (295 opened, 161 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Do it Best Corp.
- Incorporated in
- IN
- HQ
- 1626 Broadway Suite 100, Fort Wayne, IN 46802-4377
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $4.9B
- vs $4.6B prior year
Affiliated brands
- TV Hardware Distribution
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Daniel B. Starr
- Headquarters
- IN
- Founded
- 1945
- FDD year
- 2025
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 262% above the typical retail franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown6 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial membership fee (including purchase of class of shares) | $9K | $9K | |
| Equipment, fixtures, signage and leasehold improvements | $168K | $294K | |
| Initial merchandise inventory | $576K | $1.0M | |
| Security deposits, business licenses and other prepaid expenses | $8K | $12K | |
| Computer and POS Systems | $20K | $90K | |
| Additional funds - working capital for first 3 months of operation | $72K | $168K | |
| Total initial investment | $853K | $1.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $853K – $1.6M
- Middle of category vs category
- Liquid capital req'd
- $72K – $168K
- Middle of category vs category
- Franchise fee
- $9K – $9K
- Top 40% of category vs category
- Royalty
- $90/month (basic); $140/month (enhanced); $195/month (adv…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $90/month Member Services Fee (basic); $75/month per additional location; optional enhanced $140/month or advanced $195/month tiers |
| Technology fee | $90 |
| Inventory (initial) | $576K – $1.0M |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Do it Best makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. 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 Do it Best 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: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (+2.6% 3-year CAGR) with 4,053 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Do it Best 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 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4,053
- Opened
- 295
- Last reporting year
- Closed
- 161
- Turnover rate
- 4.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +2.6%
- Net unit change over 3 years
- 3-yr CAGR
- +2.6%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Termination rate
- 58.5%
- Franchisor-initiated terminations
- Ceased ops
- 67.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 50 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
50
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
244 current owners across 1 state.
- MN 244
Counts only, from the list the franchisor prints in Item 20; 195 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 95
- Loan volume
- $58.1M
- Median loan
- $612K
- average
- Charge-off rate
- 17.4%
- on 95 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)
- 82.6%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 55
- Defaults
- 8
- Typical loan rate
- 6.1%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 6%
- top lender's share
Vintage analysis
Do it Best charge-off rate by loan vintage
Top lenders financing Do it Best franchisees
Showing 3 of 55 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 Do it Best from SBA 7(a) FOIA data.
- Avg interest rate
- 6.08%
- Lender concentration
- 6.3%
Top SBA lendersTop lender holds 6% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 6 | $3.6M | 33.3% |
| 2 | Customers Bank | 5 | $1.6M | 0.0% |
| 3 | Nicolet National Bank | 5 | $4.2M | N/A |
| 4 | BMO Bank National Association | 4 | $758K | 0.0% |
| 5 | Stock Yards Bank & Trust Company | 4 | $3.5M | N/A |
| 6 | National Consumer Cooperative Bank | 3 | $1.7M | 100.0% |
| 7 | Sutton Bank | 3 | $635K | 0.0% |
| 8 | Old National Bank | 3 | $2.3M | 50.0% |
| 9 | Washington Trust Bank | 3 | $588K | N/A |
| 10 | PNC Bank, National Association | 2 | $363K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MIMichigan | 11 | 1 | 16.7% |
| CACalifornia | 10 | 0 | 0.0% |
| MNMinnesota | 9 | 2 | 33.3% |
| OHOhio | 9 | 0 | 0.0% |
| INIndiana | 6 | 1 | 25.0% |
| KYKentucky | 5 | 0 | 0.0% |
| WAWashington | 5 | 0 | -- |
| NYNew York | 4 | 0 | 0.0% |
| ILIllinois | 3 | 2 | 100.0% |
| KSKansas | 3 | 1 | 50.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
A mature, slow-growing hardware cooperative with escalating franchisee financial distress, opaque economics, and unprotected territories presents significant capital-at-risk for a $1M+ investment without clear profitability metrics.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
4 collection suits filed by Do it Best Corp. against members/guarantors for failure to pay for goods/services. No material civil actions involving the franchise relationship.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated gross sales for fiscal year ended June 28, 2025 ($4,878,875 thousand); net sales after returns/allowances were $4,731,359 thousand. Figures from audited consolidated statements of income (in thousands).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 66 / 100 verdict
- 01MEDHigh investment range ($852.5K-$1.58M) with no disclosed average revenue or net income prevents ROI validation
- 02MINORDeclining unit growth (3.4% YoY) suggests market saturation or franchisee struggles in mature 4,053-unit system
- 03HIGHActive collection litigation indicates cash flow problems among franchisees and potential systemic profitability issues
- 04MINORUnprotected territory creates direct competition risk and cannibalization within franchise network
- 05MEDCritical data omissions: royalty rate unknown, franchise term unknown, no Item 19 financial performance data
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail4 matters · Item 3
Litigation cases
The franchisor
Status not stated in the filing (4)
Do It Best Corp. v. Zootown Hardware, LLC and Nathaniel Tollefson
Brought against a franchisee · Allen County, Indiana Superior Court · 02D03-2501-PL-000040
“Do It Best Corp. v. Zootown Hardware, LLC and Nathaniel Tollefson, Allen County, Indiana Superior Court, Cause No. 02D03-2501-PL-000040”Page 16 of the 2025 FDD, Item 3
Do it Best Corp. v. H & H Hometown Hardware, Inc.
Brought against a franchisee · Allen County, Indiana Superior Court · 02D02-2508-PL-000343
“Do it Best Corp. v. H & H Hometown Hardware, Inc. Allen County, Indiana Superior Court, Cause No. 02D02-2508-PL-000343”Page 15 of the 2025 FDD, Item 3
Do it Best Corp. v. Highland Building Center, LLC and James West
Brought against a franchisee · Allen County, Indiana Superior Court · 02D01-2411-PL-000532
“Do it Best Corp. v. Highland Building Center, LLC and James West, Allen County, Indiana Superior Court, Cause No. 02D01-2411-PL-000532”Page 15 of the 2025 FDD, Item 3
Do it Best Corp. v. Thomas Hometown Sales & Service, LLC, and Martin David
Brought against a franchisee · Allen County, Indiana Superior Court · 02D03-2505-PL-000210
“Do it Best Corp. v. Thomas Hometown Sales & Service, LLC, and Martin David, Allen County, Indiana Superior Court, Cause No. 02D03-2505-PL-000210”Page 16 of the 2025 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 2025 · 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 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | IN |
| Litigation count | 4 |
View Item 3 litigation summary
4 collection suits filed by Do it Best Corp. against members/guarantors for failure to pay for goods/services. No material civil actions involving the franchise relationship.
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 0 hrs
- Training location
- Fort Wayne, Indiana
- Ongoing training
- Optional
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- Epicor Software Corporation (preferred)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Epicor Software Corporation (preferred)
Item 20 · call current owners
Franchisee Contacts
439 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Do it Best franchise?
The total investment to open a Do it Best franchise ranges from $853K – $1.6M, with an initial franchise fee of $9K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Do it Best franchise owners earn?
Do it Best makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Do it Best?
Do it Best is franchised by Do it Best Corp.. The FDD names no parent company. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Do it Best 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 Do it Best FDD and qualifies whose outlets they describe.
What is Do it Best's franchise failure rate?
Based on SBA 7(a) loan data, Do it Best has a charge-off rate of 17.4% across 95 loans, meaning 17.4% 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 Do it Best franchise locations are there?
As of their most recent FDD filing, Do it Best has 4,053 total units in the United States, including 4,053 franchised units and 0 company-owned units. 295 new units were opened in the latest reporting year.
Is Do it Best a good franchise to buy?
FranchiseVerdict rates Do it Best as a B-grade franchise with a verdict score of 66 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.