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Franchise Business Plan – ACE Hardware

Updated 27.03.24 4 minutes read
Industry Insights

Ace Hardware Corporation is a cooperative that generates revenue through wholesaling hardware and related products to member retail stores. The company operates through an estimated 4,700 U.S.-based stores and more than 540 international stores. 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. The company’s operating income reached $272.2 million in 2018.


Franchisees do not receive an exclusive territory and may face competition from other member stores and competitive brands. Their membership is granted for the specific location of the store as stated in the membership agreement and the Ace brand agreement. Joorney Business Plan Writers develop in-depth, location-based, and competition analyses helping franchisees estimate their growth potential in a specific territory.

Financial Incentives

The initial investment for establishing an Ace Hardware franchise business ranges from $272,500 to $1,064,230. The investment includes a wide range of expenses such as the franchise fee, equipment, computer system, insurance, and opening inventory expenses. Ace Hardware provides incentive packages that can reduce the cost of the initial investment by 20% – or up to $255,000. In addition, the franchise holders do not pay a royalty fee. Joorney Business Plans has experience in developing long-term financial projections for Ace Hardware franchises and understands the specifics pertaining to the investment requirements.


Ace Hardware continually seeks to enhance and develop training offerings for both online and instructor-led sessions. The franchisor may, but is not required to organize a three-day training program entitled NSN University, held in Oak Brook, Illinois, Pittsburgh, Pennsylvania, or other locations designated by the company. Attendance by at least one person representing a franchisee is highly recommended but not mandatory. The fee for the training program shall be at the company’s then-current fee schedule.

The franchisee is responsible for the attendees’ own travel, lodging, meals, salary, and other expenses incurred during the training program. The training topics include management and leadership, retail operations, selling skills, and customer service, as well as select product and project training. Joorney Business Plans Writers have extensive experience in developing detailed personnel plans and organizational charts for Ace Hardware franchise businesses.


Ace Hardware’s marketing campaigns employ strategic, integrated marketing initiatives, including national television and print advertising, targeted online and radio spots, rich media, social media, in-store signage, emails to members of the Ace Rewards customer loyalty program, and public relations initiatives. Joorney Business Plans helps franchisees in writing effective marketing strategies for traditional and digital marketing channels in line with the franchise agreement.

Ace Hardware is a unique franchise opportunity because the company is a retailer-owned cooperative, meaning Ace franchisees are the owners of the corporation. Being part-owners, franchisees pay no royalty fees and a portion of the profit gets distributed back to them each year. Being part of a cooperative also increases the collective buying power of all the franchisees.