How much does it cost to buy an Ace Hardware franchise?
Today the Ace Hardware family of stores generates nearly $16 billion in sales (versus approximately $100 billion in revenue for Home Depot). To become an Ace Hardware owner, franchisees must have $250,000 in liquid capital, with a minimum net worth of at least $400,000.
How many Ace Hardware stores are there?
In 1976, Ace hardware stores were officially on the market for entrepreneurs looking to invest in a promising association. 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.
What is the history of Ace Hardware?
The company began in 1924 and started franchising over five decades later, in 1976. It now has a large base in the United States, where it boasts over 4,400 franchised locations. It is also present in bulk internationally, where it has over 800 franchises. Ace Hardware stresses teamwork and corporate assistance.
Does Ace Hardware have free pickup?
All this depends on your area's needs. The Ace Hardware team will typically offer owners advice on what to carry in their stores, so there are no missed opportunities. Ace Hardware offers its Ace Rewards program and free store pickup to customers, as well. This may drive customer conversion.
How much is a 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.
Who owns the Ace Hardware franchise?
the SM Group of CompaniesACE Hardware is an affiliate of the SM Group of Companies.
Is Ace Hardware a good franchise?
Ace Hardware ranked No. 12 on Entrepreneur's 2022 Franchise 500 list.
How much does an Ace store owner make?
How much does a Business Owner make at Ace Hardware in the United States? Average Ace Hardware Business Owner yearly pay in the United States is approximately $75,111, which is 17% above the national average.
What is the most profitable franchise?
Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...
Are Ace Hardware stores independently owned?
As a cooperative, Ace Hardware stores are primarily individually owned and operated. Being locally owned means their customers are their friends, their neighbors and their fellow citizens.
Is owning a hardware store profitable?
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 profit margin at Ace Hardware?
Retail gross profit for the three months ended April 2, 2022 was $73.0 million, a decrease of $3.1 million from the first quarter of 2021. The retail gross margin percentage was 46.6 percent of retail revenues in the first quarter of 2022, down slightly from 46.8 percent in the first quarter of 2021.
How much money do I need to start a hardware store?
An independent hardware store can control startup costs. An independent store might need between $50,000 to $75,000 to get started where a franchise might require anywhere from $275,000 to $1.6 million.
What is the royalty fee for Ace Hardware?
No royalty fees and a portion of the company profits are distributed back to the retail owners each year. Independent ownership with dedicated training & support. Flexible product mix that can be customized to your local market. Recommended core Ace product mix based on 25 years of Point-of-Sale data.
Does Ace Hardware have a stock?
The price change percentage of Ace Hardware Corp over the last month is N/A%. The Stock Performance of Ace Hardware Corp is significantly lower than the stock performance of its index....International Peers - Ace Hardware Corp.Company NameAce Hardware CorpCtryUSAMarket Cap. last (mUSD)N/ABeta 1-YearN/A6 more columns
What is the cost of McDonald's franchise?
The Franchise fee of McDonald's goes for around 30 lakhs INR; however, this fee is also attached with a 4 % monthly royalty fee as service fees to the brand. The actual investment amount differs, a business owner needs to keep a rough estimate of around 6 to 14 Crores.
What is the royalty fee for Ace Hardware?
No royalty fees and a portion of the company profits are distributed back to the retail owners each year. Independent ownership with dedicated training & support. Flexible product mix that can be customized to your local market. Recommended core Ace product mix based on 25 years of Point-of-Sale data.
What is profit margin at Ace Hardware?
Retail gross profit for the three months ended April 2, 2022 was $73.0 million, a decrease of $3.1 million from the first quarter of 2021. The retail gross margin percentage was 46.6 percent of retail revenues in the first quarter of 2022, down slightly from 46.8 percent in the first quarter of 2021.
Who is the CEO of Ace Hardware?
John Venhuizen (Mar 31, 2013–)Ace Hardware / CEOJohn Venhuizen is President and Chief Executive Officer of Ace Hardware Corporation. Venhuizen, 51, is a 29-year veteran of Ace. Prior to becoming CEO in 2013, Venhuizen served as President and Chief Operating Officer.
When did Ace Hardware start franchising?
1976Ace Hardware seeks to live up to its jingle and truly be "the place with the helpful hardware folks." The company began in 1924 and started franchising over five decades later, in 1976. It now has a large base in the United States, where it boasts over 4,400 franchised locations.
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 Ace stores are there?
After the retirement of longtime president and founder Richard Hesse in 1973, Ace was sold to its retailers, becoming a retailer-owned cooperative. 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. Ace operates 17 distribution centers in the United States, and additional distribution facilities in China, Panama, and United Arab Emirates.
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.
What Does an Ace Hardware Franchise Cost?
To buy a franchise with Ace Hardware, you'll need to have at least $250,000 in liquid capital and a minimum net worth of $400,000. Franchisees can expect to make a total investment of $650,000 - $1,000,000. They also offer financing as well as a discount for veterans (10%). *
How long has Ace Hardware been around?
For more than 96 years, Ace Hardware has been America's neighborhood hardware retailer. Recognized as leader in the booming $358 billion home improvement industry, Ace Hardware is offering a tremendous opportunity for those wanting to build a profitable and lasting business.
Is Ace Hardware a neighborhood store?
For more than 96 years, Ace Hardware has been America's neighborhood hardware retailer. Ace Hardware is offering a tremendous opportunity for those wanting to build a profitable and lasting business. With financial backing and support from a globally trusted and locally embraced brand, the ultimate success can be yours with Ace. Request information today to learn more!
Ace Hardware
Ace Hardware began its story in 1924 when four hardware store owners joined together to buy merchandise in bulk to maximize their profits and consequently be able to compete effectively with larger stores. After years of initial success and a considerable expansion across the country, Ace Hardware began franchising in 1976.
Ace Hardware Franchise Cost
When investing in an Ace Hardware Franchise, the first factor to consider is the financial requirements that accompany this endeavor. The total investment amount required to open an Ace Hardware franchise ranges from $286,000 to $2,110,230 including the company’s franchise fee of $5,000.
What does Ace Hardware look in a franchisee?
Additionally, Ace is particularly looking for candidates who are passionate about local customers. Also, the applicants must possess leadership and decision-making skills, as they will run the store’s daily operations.
Ace Hardware Stores Are Growing in Numbers
When evaluating an Ace Hardware franchise ’s potential for growth one does need to go beyond their internal numbers to better understand the prospect for success of the investment opportunity at hand. Ace Hardware currently operates $4,700 U.S. -based stores and more than 540 international stores.
A strong franchise system that continues to attract new applicants
From 2015 to 2017 Ace had a yearly increase of 50+ franchises to its system. This indicates a strong franchise system that continues to attract new applicants. Moving forward, Ace is looking for candidates. They must be willing to open Ace Hardware franchises in the territory of their choice.
Summary
Investing in an Ace Hardware franchise is an interesting opportunity. Especially for individuals looking to make their way into the retail industry. The prospects for growth and success within the industry and the Ace Hardware brand itself are extensive.
Want to know more?
Vetted Biz is the leading platform for accessible and analytical data on franchises and businesses available in the U.S. Our research team has reviewed over 2,600 franchises. And knows the key facts and data that signal a successful franchise system.
Who owns Ace Hardware?
Ace Hardware's history begins in 1924, when four hardware store owners, Richard Hesse, E. Gunnard Lindquist, Franke Burke and Oscar Fisher, joined together to buy merchandise in bulk in order to maximize their profits and compete effectively with larger stores. Today the cooperative has grown to include thousands of stores in seven countries, each offering a variety of home improvement merchandise, including Ace's own exclusive line of products.
What is franchise fee?
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor.
How long does a franchise last?
Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease.
Do franchisors have in-house financing?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
When Did Ace Hardware Become A Cooperative?
After Hesse’s retirement as president, the brand continued expanding and growing but it had to become cooperative in order to grow and have a profitable future.
How Does The Ace Hardware Cooperative Work?
A cooperative is a business where all the members own the business and work together to make it more successful.
How Many Ace Hardware Stores Are There?
There are currently approximately 5,000 Ace Hardware stores operating in 60 countries across the globe.
How Much Does It Cost To Own An Ace Hardware?
As Ace Hardware is a cooperative, business owners set their stores and use the branding they want to encourage customers to visit to there.
How Much Do Ace Hardware Franchise Owners Make?
It is reported that franchise owners get a monthly average of $742.00.
Is Ace Hardware A Good Store To Own?
Ace Hardware is a great business to own because the profits offered by operating a franchise can be over $80,000 a year.
Conclusion
Ace Hardware is a chain of stores (around 14,000 in the U.S.) that carry home improvement supplies.
Who is the franchisor of Ace Hardware?
The franchisor of the brand is Ace Hardware Corporation. In the US, Ace operates as a retailer-owned cooperative. To explain, franchisees with approved applications get a membership in the coop upon purchase of stock shares. This membership also gives a person the right to buy products and services from the franchisor.
Where is Ace Hardware located?
The brand is a game-changer in retail because it allowed individual stores to buy products in bulk and get them at the lowest possible rates. The company, with its main office in Oak Brook, Illinois, now has over 5,000 stores around the globe.
What is The Real Cost of A Lemonshark Poke Franchise?
However, other fast-casual restaurants may also have a place and opportunity to become an investment in the long run. One of them is LemonShark Poke, self-dubbed as a “fine casual” offering healthier food options for consumers needing a quick bite.
How long is franchising phase 1 training?
The franchisor may conduct the Phase I training at a chosen location or via video call or webinar. This training will last five days. However, the duration may vary depending on the participants’ experience, knowledge, or qualifications. After they complete Phase I training, they will proceed to Phase II training which will last another five days.
How much money has Ace raised?
Ace has raised over $100 million for both organizations through monetary and product donations.
How many owners and managers are required to complete the Phase I and II training?
A minimum of one owner or manager must attend the Phase I and Phase II training programs and complete both satisfactorily. Moreover, the owner and manager must attend the Phase II training program and complete it according to the franchisor’s satisfaction. The requirements for the training may vary according to the participant’s experience.
What is Oak Brook's new owners institute?
There’s a required training program in the Oak Brook main office called New Owners Institute. Under this course, new owners learn the tools and resources, and best practices in the trade. Included in the program are lessons about managing finance, inventory, marketing, human resources, and other facets.
In 2022, is Ace Hardware a franchise?
As of 2022, Ace Hardware is a retailer-owned cooperative, with the bulk of its stores operated by individual operators.
When did Ace Hardware convert to a cooperative?
After founder and longstanding president Richard Hesse retired in 1973 and 1974, Ace Hardware, which had opened in 1924, became a cooperative, allowing the company to develop and prosper.
How does the Ace Hardware cooperative function?
Independent company entrepreneurs can create their own businesses while still benefiting from the bigger Ace Hardware. With Ace Hardware, for example, a private investor buys $5,000 worth of stock for the firm.
What Is the Number of Ace Hardware Stores?
Over 5,000 locations in 60 countries are presently open for business, according to the Ace Hardware website. As a result, independent operators own the vast majority of Ace Hardware locations.
How expensive is it to own Ace Hardware?
In the Ace Hardware cooperative, business owners can open their own stores and utilize the company’s logo to entice people into their establishment.
How much do owners of Ace Hardware franchises earn?
Ace Hardware franchise owners reportedly make an average of $83,500 each year. However, some Ace Hardware stores may earn as much as $95,000 per year, making the firm a viable acquisition.
Is It a Good Idea to Own Ace Hardware?
Ace Hardware may be a great business to operate because the annual revenues can reach over $80,000.
What is the beauty of Ace Hardware?
The Beauty of Ace. The beauty of Ace is that each store is helpful, unique and always striving to meet the changing needs of the community. It is the local differentiation, on top of the service, convenience and quality our customers have come to expect, that have poised Ace Hardware to stand the test of time.
Where are Ace stores located?
Ace stores can be found around the world, from Indonesia to Nicaragua and Anchorage, Alaska to Miami, Florida. Ace stores deliver helpful service in more than 70+ countries and in all 50 states and are Globally Trusted and Locally Embraced.
What is the largest hardware cooperative?
Ace Hardware, the world's largest hardware cooperative, selects only a handful of Ace stores annually to receive this coveted...
What is ace women in retail?
Ace Women in Retail is an opportunity for retailers to participate in an affinity group that shares ideas, hosts speakers relevant to the industry and business as well as network and connect with fellow retailers. The group continues to be highly recognized by participating retailers as beneficial.
Is Ace a franchise?
Ace is unlike any other business or franchise opportunity in the world.
Does Ace Hardware compete with big box stores?
Each Ace Hardware store competes differently depending on their situation. In most cases, Ace stores are able to compete with big boxes by offering a convenient hardware store experience with exceptional service.
