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How Much Does it Cost to Start an Ace Hardware Franchise?

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Ace Hardware is a brand known throughout the United States, with a reputation for reliability and value. One of the things shoppers appreciate in the brand is the fact that most of its locations are locally owned and operated. This is especially important to shoppers looking to avoid the big box stores and keep their dollars local.

One of the reasons investing in a franchise is so popular is that it offers immediate brand recognition. You benefit from the franchise's national marketing efforts, the public already knows your name, and you inherit a proven business method. Win, win, win.

Top Reasons to Invest in an Ace Hardware Franchise

Ace Hardware offers a wide range of tools to franchisees to enable them to succeed in business. These tools include training and support, a world-class brand, and engaging ownership incentives. With over 90 years in business, Ace Hardware is a leader in the hardware industry and has a robust franchise program. In addition, the hardware business doesn't have slow and busy seasons; people always need these supplies. In other words, if you're looking for an investment with long-term potential, an Ace Hardware franchise makes a solid choice.

Ace Hardware is a retailer-owned cooperative, meaning that all Ace Hardware franchisees are owners of the corporation. As the number one distributor in the hardware industry, franchisees have the opportunity to reap the benefits of a global brand and its collective buying power, while maintaining independent brand ownership. Ace Hardware franchises also offer owners the flexibility to customize their offerings based on customer needs.

Points to Consider Before Investing in an Ace Hardware Franchise

Benefits: It is important to determine the benefits of the franchise. In this case, consider such things as the premier brand, training and support, financial support, and ownership incentives. In addition, there is the benefit of an initial investment and long-term revenue return, making this business tempting for any franchise investor.

Future prospects: Owning an Ace Hardware franchise means joining the hardware industry. Before investing, determine the projections of the hardware industry and related services in coming years. Also, you need to forecast the progress that the Ace hardware franchises are making. Having a realistic goal is key; get to know the trends and earnings to determine what you can expect in future years.

Profitability: The profitability of Ace Hardware demonstrates that more people love the brand and the services or products it offers. Developing a basic understanding of this helps set realistic expectations for your franchise.

Sample Investment Fees for an Ace Hardware Franchise

Like any other franchise, an Ace Hardware franchise requires a significant financial investment. There are many requirements to meet, as well as fees you must pay. Ace Hardware recommends liquid assets between $250,000 and $1.5 million, depending on the package you choose.

If you opt to construct a new building, you're looking at that top figure, $1.5 million. Leased premises start you off at the low end of $250,000.

The breakdown of your franchise costs includes:

  • You'll pay between $4,000 and $5,000 as a franchise fee
  • Capital subscription costs between $4,000 and $5,000
  • Signage costs vary widely, between $2,500 and $25,000
  • Interior d├ęcor ranges between $7,000 and $14,000
  • Property improvements, including fixtures and furniture, average around $8 per square foot
  • Telecom equipment costs between $10,000 and $20,000
  • Your computer system, including inventory and payment systems, run between $50,000 and $80,000
  • Opening inventory costs between $150,000 and $600,000
  • Insurance premium vary widely, between $3,000 and $30,000

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