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Ace Hardware costs and fees

The average cost to open one of the 200 biggest franchises in the US is $1,202,874 — see how Ace Hardware compares.


Fact checked
Overall costs for Ace Hardware run anywhere from $86,000 to $1,197,230. See how the costs break down and what funding options might be right for your new venture into the franchise foray.

How COVID-19 affects franchising costs

Strict sanitation and employee protection measures during the coronavirus outbreak add to the typical costs you face when opening a new franchise. Paired with the unusually heavy amount of promotions that may be required by the franchise, you may not see as much in the way of profits starting out. For more information on what support is out there, read our guide to loans for businesses affected by the coronavirus.

Estimated initial costs

Our cost estimates are accurate as of 2019 from and include opening fees and expenses only. Your location may result in higher or lower fees.

Franchise fees

Ace Hardware franchise fees total around $5,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
Franchise Cost
Initial franchise fee $5,000 to $5,000
Estimated total $5,000 to $5,000

Equipment fees

Equipment fees total $92,500 for Ace Hardware. This is less than the $180,023 average for the top 200 franchises.
Equipment Cost
Exterior signage $5,000 to $35,000
Interior signage $15,000 to $32,000
Telephone, in-store communications and other equipment $0 to $10,000
Computer system with point-of-sale hardware and software $8,000 to $80,000
Estimated total $28,000 to $157,000

Real estate fees

Real estate will set you back $112,500 for Ace Hardware, thought it's less than the average of $788,376 for the top 200 franchises.
Real estate Cost
Leasehold improvements, including decorating, furniture and fixtures $27,000 to $135,000
First three months' rent $3,000 to $60,000
Estimated total $30,000 to $195,000

Training fees

Ace Hardware initial training costs total $18,865 — more than the nationwide average of $9,788.
Training Cost
New investor retail training $0 to $37,730
Estimated total $0 to $37,730

Inventory costs

Initial inventory for Ace Hardware shakes out to $301,250. This is more expensive than the nationwide average of $53,119.
Inventory Cost
Opening inventory $0 to $600,000
Initial supplies $0 to $2,500
Estimated total $0 to $602,500

Insurance costs

Initial insurance costs for Ace Hardware run $15,000. This means you'll be paying more than the overall nationwide average of $6,311.
Insurance Cost
Insurance $0 to $30,000
Business insurance Will vary depending upon coverage purchased. Estimated annual cost of required coverage: $2,500 - $30,000.
Estimated total $0 to $30,000

Administrative fees

Ace Hardware administrative fees total up to $9,000 — which comes in over the overall nationwide average of $6,761.
Admin Cost
Prepaid expenses and deposits $3,000 to $15,000
Estimated total $3,000 to $15,000

Other expenses

Miscellaneous expenses for Ace Hardware total $87,500 — more than the nationwide average of $69,970.
Other Cost
Capital stock subscription $5,000 to $5,000
First 90 days' additional funds $15,000 to $150,000
Estimated total $20,000 to $155,000
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2019.

How to finance

The best way to finance Ace Hardware comes down to your personal financial situation. What assets you have available will largely determine how much you need to borrow, and which option suits you best. Potential solutions include:
  • Bank loan. Your personal credit plays a large role in getting a business term loan from a bank. Typically this type of funding is for larger amounts.
  • Online loan. Credit requirements may be more flexible for an online loan than a bank loan, but amounts may max out at a lower amount — typically around $1 million.
  • SBA loan. The good part about SBA loans is that they top out at $5 million, but your business has to meet a number of requirements.
  • Credit card. Small costs that aren't fixed, such as stray inventory and supply purchases, may be better off on a business credit card. Just make sure you can pay it off quickly to avoid high APRs.
Also check if Ace Hardware franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.

Compare small business lenders

Data indicated here is updated regularly
Name Product Filter Values Min. Amount Max. Amount Requirements
Lendio business loans
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
Fora Financial business loans
1+ year in business, $250,000+ annual revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Great for SBA loan applicants.
First Down Funding business loans
At least 2 years in business, an annual revenue of $300,000+, and a minimum credit score of 400
Alternative financing up to $300K with highly competitive rates.
ROK Financial business loans
Eligibility criteria 3+ months in business, $15,000+ in monthly gross sales or $180,000+ in annual sales
A connection service for all types of businesses — even startups.
OnDeck small business loans
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.

Compare up to 4 providers

How Ace Hardware stacks up

Compare how Ace Hardware holds up against two similarly sized franchises.
Papa John's Ace Hardware Tim Hortons
Average Franchise fees $12,500 $5,000 $32,500
Average Equipment fees $86,500 $92,500 $255,000
Average Real estate fees $258,750 $112,500 $817,750
Average Training fees $8,500 $18,865 $11,000
Average Inventory fees $6,000 $301,250 $15,500
Average Marketing fees $5,000 NA $2,750
Average Licenses and permits fees NA NA $5,750
Average Insurance fees $4,750 $15,000 $10,825
Average Admin fees $210 $9,000 NA
Average Personnel fees NA NA NA
Average Other fees $17,750 $87,500 $32,500

Bottom line

Ace Hardware franchise costs run a total of $641,615. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.

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