Ace Hardware SBA Loans

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Ace Hardware: A Franchise Opportunity with Local Roots and Global Reach

Ace Hardware, the world’s largest retailer-owned hardware cooperative, offers a unique franchise opportunity that combines the advantages of a globally recognized brand with the flexibility and community focus of locally owned businesses. With its recent ranking as the No. 5 franchise opportunity worldwide by Entrepreneur Magazine’s Franchise 500®, Ace Hardware continues to solidify its position as a leading franchise choice for aspiring entrepreneurs.

A Proven Business Model

Established in 1924, Ace Hardware has a long-standing history of success, with over 5,800 locally owned and operated hardware stores across approximately 60 countries. The cooperative model allows franchisees to leverage the buying power of a large organization while maintaining the autonomy to tailor their stores to the specific needs of their local communities. One of the key advantages of becoming an Ace Hardware franchisee is the absence of royalty fees. Instead, store owners receive a percentage of the overall profits, aligning their interests with the cooperative’s success. This profit-sharing model incentivizes franchisees to drive sales and growth, fostering a collaborative and supportive environment within the Ace Hardware network.

Comprehensive Support and Resources

Ace Hardware provides comprehensive support to its franchisees, including training, marketing assistance, and access to a vast inventory of high-quality products. The cooperative’s substantial investment in digital marketing, with plans to increase spending by $25 million in 2024, demonstrates its commitment to driving brand awareness and customer engagement. Moreover, Ace Hardware encourages franchisees to operate with a degree of uniqueness, catering to the specific needs of their local communities. This flexibility allows franchisees to differentiate their stores, create a distinct identity, and build strong connections with their customers.

Attractive Financial Requirements

To become an Ace Hardware franchisee, prospective owners must have $250,000 in liquid capital and a minimum net worth of $400,000. The initial franchise fee is $5,000, and the total investment ranges from $292,000 to $2,119,230, depending on factors such as store size and location. Ace Hardware also offers incentives for converting existing hardware stores into Ace Hardware franchises, with reported increases in sales, margins, and profits post-conversion. Additionally, the cooperative provides opportunities for existing independent grocery businesses to add an Ace Hardware franchise, leveraging existing foot traffic without franchise fees or royalties.

Ace Hardware SBA Loans by Quarter

Franchise# of Loans Avg LoanAvg RateYearQtr
Ace Hardware2 $958,70011.4%20234
Ace Hardware4 $1,111,15010.1%20233
Ace Hardware7 $855,2719.3%20232
Ace Hardware14 $925,2938.2%20231
Ace Hardware7 $1,004,7718.3%20224
Ace Hardware12 $1,361,0427.0%20223
Ace Hardware11 $750,2365.9%20222
Ace Hardware14 $549,5295.3%20221

Age of Ace Hardware at time of SBA financing

Franchise# of Loans Avg LoanAvg RateBusiness Age
Ace Hardware24 $1,094,5717.4%Change of Ownership
Ace Hardware19 $752,8267.7%Existing or more than 2 years old
Ace Hardware10 $567,7007.0%New Business or 2 years or less
Ace Hardware18 $1,020,2507.4%Startup, Loan Funds will Open Business

 A Commitment to Community and Customer Service

At the core of Ace Hardware’s success is its commitment to providing exceptional customer service and fostering a strong sense of community. The cooperative encourages franchisees to become active members of their local communities, building relationships with customers and establishing a reputation for helpfulness and expertise. By prioritizing customer satisfaction and leveraging the trust and familiarity of local ownership, Ace Hardware franchisees can differentiate themselves from larger, impersonal competitors and create a loyal customer base. With its proven business model, comprehensive support, attractive financial requirements, and commitment to community and customer service, Ace Hardware presents a compelling franchise opportunity for entrepreneurs seeking to build a successful and locally-focused hardware business backed by a globally recognized brand.

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