Are you excited to know details about Ace Hardware Franchise to start bussiness with this franchise, In this post, you will get information about the Ace Hardware Franchise How to sale, Cost, Opportunity, and Fee etc.
The franchisor, Ace Hardware Corporation, is a distributor of equipment and related items. The franchise offered is for the activity of a retail home improvement shop under the name “Pro Hardware.” In the United States Ace works as a retailer-possessed helpful.
On the off chance that the franchisee’s application for participation is endorsed, the franchisor will allow the franchisee enrollment in the helpful upon the franchisee’s acquisition of portions of its stock. This enrollment qualifies the franchisee for buy product and service from the franchisor.
Ace Hardware stores sell high-quality home improvement items while stressing an accommodating, customized shopping experience. As the biggest retailer-possessed equipment helpful on the world, Ace’s brand technique is to appreciate the best of the two universes:
Saddling the purchasing intensity of its a great many stores while separating from the monster huge box chains through advantageous, privately claimed neighbourhood areas staffed by charming, master partners. Ace franchisees have the opportunity to change over from exclusive home improvement shops to investors inside the organization.
#1. Ace Hardware Franchise Opportunities
What are the ace hardware franchise opportunities Franchisees may offer rental service from their Ace store under the name “Pro Rental Place.” Franchisees may also own and work a current separate business, for example, a market, and add an Ace Hardware store to or inside the current business. The franchisor refers to this as its “staple organization.”
Successful people like you pick Ace Hardware for business possession ordinary these 7 reasons:
- New store incentives – up to $330,000*
- No royalty fees and a segment of the organization benefits are appropriated back to the retail proprietors every year
- Independent possession with devoted training & support
- Flexible product mix that can be altered to your nearby market
- Recommended centre Ace product mix dependent on 16 years of Point-of-Sale information
- Solid establishment and prevailing fashion evidence future
- Globally perceived and privately grasped
#2. Ace Hardware Franchise Cost
Ace hardware franchise cost
| Estimated Initial Investment for a Start-Up Business – Leased Premises | ||
| Name of Fee | Low | High |
| Initial Franchise Fee – Affiliation Fee | $5,000 | $5,000 |
| Capital Stock Subscription | $5,000 | $5,000 |
| Signage – Exterior Signage | $5,000 | $35,000 |
| Signage – Interior Decor | $15,000 | $32,000 |
| Leasehold Improvements – Decorating, Furniture and Fixtures ($9 per sq. ft.) | $27,000 | $135,000 |
| Telephone and Other Equipment | $10,000 | $20,000 |
| Computer System with Point-of-Sale (Hardware/Software) | $45,000 | $80,000 |
| Rent – First 3 months | $3,000 | $60,000 |
| Prepaid Costs- Security Deposit, Dues, Permits, Subscriptions and other Prepaid Costs | $3,000 | $15,000 |
| Opening Inventory | $150,000 | $1,000,000 |
| Initial Supplies | $500 | $2,500 |
| Insurance | $2,500 | $30,000 |
| New Investor Retail Training | $0 | $37,730 |
| Extra Funds – Working capital for the initial 90 days | $15,000 | $150,000 |
| ESTIMATED TOTAL | $286,000 | $1,067,230 |
2. Estimated Initial Investment for a Start-Up Business – New Construction
| Estimated Initial Investment for a Start-Up Business – New Construction | ||
| Name of Fee | Low | High |
| Initial Franchise Fee – Affiliation Fee | $5,000 | $5,000 |
| Capital Stock Subscription | $5,000 | $5,000 |
| Signage – Exterior Signage | $5,000 | $35,000 |
| Signage – Interior Decor | $15,000 | $32,000 |
| Real Property Purchase Costs – Land | $15,000 | $200,000 |
| Real Property Purchase Costs – Building | $60,000 | $240,000 |
| Construction Costs, Fixtures, Decorating and other Improvements | $24,000 | $250,000 |
| Prepaid Costs- Security Deposit, Dues, Permits, Subscriptions and other Prepaid Costs | $3,000 | $15,000 |
| Telephone and other Equipment | $10,000 | $20,000 |
| Computer System with Point-of-Sale (Hardware/Software) | $45,000 | $80,000 |
| Opening Inventory | $150,000 | $1,000,000 |
| Initial Supplies | $500 | $2,500 |
| Insurance | $2,500 | $30,000 |
| New Investor Retail Training | $0 | $37,730 |
| Extra Funds – Working capital for the initial 90 days | $15,000 | $150,000 |
| ESTIMATED TOTAL | $355,000 | $2,110,230 |
3. Estimated Initial Investment for Conversion
| Estimated Initial Investment for Conversion | ||
| Name of Fee | Low | High |
| Initial Franchise Fee – Affiliation Fee | $5,000 | $5,000 |
| Capital Stock Subscription | $5,000 | $5,000 |
| Signage – Exterior Signage | $5,000 | $35,000 |
| Signage – Interior Décor | $15,000 | $32,000 |
| Decorating – Decorating. Furniture and Fixtures ($1 per sq. ft) | $3,000 | $15,000 |
| Other Equipment | $0 | $10,000 |
| Computer System with Point-of-Sale (Hardware/Software) | $8,000 | $80,000 |
| Opening Inventory | $0 | $600,000 |
| Initial Supplies | $500 | $2,500 |
| Insurance | $2,500 | $30,000 |
| New Investor Retail Training | $0 | $37,730 |
| ESTIMATED TOTAL | $41,000 | $852,230 |
4. Other Fee:
| Type of Fee | Amount |
| Late Payment | 0.77% of the past due bi-weekly billing statement balance. |
| Low Volume | $100 per bi-weekly billing period if annual volume purchased is less than $200,000 |
| Freight Charge | The freight rate is billed as a fixed percentage of the franchisee’s warehouse purchases, adjusted annually. |
| Fuel Surcharge | When the U.S. National Average price for diesel fuel exceeds $2.05 per gallon, a 0.50% fuel charge applies. The surcharge is adjusted (i.e., increased or decreased) weekly, 0.50% for every five-cent change (increase or decrease) in fuel price. |
| Core Retail Services | $168 per month for all parent stores and $37 per month for each branch store. |
| Regulatory | Varies by state and product (i.e. paint recycling fee). |
| Business Insurance | Will vary depending upon coverage purchased. Estimated annual cost of required coverage: $2,500 – $30,000 |
| Annual Brand Assessment | Store’s first calendar year: $6,000 flat fee per store. Subsequent years: 2% of prior year purchases subject to minimum and maximum assessments. |
| Computer Hardware and Software for Point of Sale System | $45,000 – $80,000 |
| Computer Hardware and Software Maintenance | Franchisees will also incur charges for ongoing computer hardware and software maintenance services. Costs for these services will vary depending on the services selected by franchisees but are estimated to be $500 per month. If franchisees use a point of sale system from Epicor Software Corporation, they will also pay an additional $7.50 per payment device, per month, for transactional security (i.e. point to point encryption). If franchisees use a different point of sale vendor, the fee for point to point encryption will vary. |
| Store Planning Services | Minimum $6,000 flat fee for basic services package. Additional fees will vary depending on project scope. |
| Ace BankCard Program | $35 annual fee per store. A monthly non-qualified fee will be assessed to the franchisee’s statement based on card type and volume. |
| Customer Check Verification Service (Telecheck) | 1% of the face value of the customer’s check. |
| Ace Rewards Program | $850 beginning charge; $75 every month, per store from that point. $0.31 per direct mail piece. Each participating store is required to send in three Ace Rewards specific direct mail promotions per year. |
| Grocery Format Add-on to Ace Rewards Program | If franchisees are a grocery format, there is a one-time set-up fee of $1,000 if franchisees do not already use products provided by Ace’s chosen vendor, ProLogic. There is an additional program tee of $300 per Cycle. There are 13 non-overlapping Cycles per calendar year. |
| Ace Gift Card Program | $50 initial sign kit fee plus $0.50 per blank (unactivated) card stock. Additional point-of-service processing fees apply per credit card transaction; such fees vary by card processor (VISA, MasterCard, etc.) and by number of transactions processed. Cost will also vary depending upon card, displays and accessories purchased. |
| Regional Advertising | Will vary depending on regional advertising programs. |
| Ace Marketing Muscle | Will vary based on the services utilized. |
| Group Preprint Program | Price varies by page count and group participation. For example, group pricing for an eight tab is $48 per thousand, while individual store orders are $76 per thousand. See order form for specific pricing. |
| New Movers Program | $0.23 per piece. |
| Monthly Sign Kit Program | $175 per month for full kit; $75 for mini-kit. |
| Customer Insights Program (Mystery Shop, Customer Engagement, Employee Engagement) | For each in-store riddle shop, the charge is $46. For each telephone puzzle shop, the expense is $15. For every contender riddle shop, the charge is $46. Franchisees can also purchase customer engagement and employee engagement services, in addition to the mystery shop services, for a monthly bundle fee of $67 per month (which is billed as a $46 mystery shop fee and a $21 customer and employee engagement survey fee). |
| Visual Merchandising Services | Price varies depending on the size of the store. |
| Ace Rental Place | Will shift contingent on the rental gear offered, apparatuses required, support/auto shop needs and any discretionary outside signs chose. Least cost of usage starts at around $15,000. |
| Retail Loss Prevention | Will vary depending upon equipment or services utilized. Estimated cost range per service: $30 – $3,500. Costs do not include expenses for meeting rooms, travel, lodging, meals or tax where applicable. |
| National Catalogues | $29 per month for one set of catalogues per year (18 total). Additional sets are billed at a rate of $16 per month, per set. |
| Ace Catalogue on DVD | One DVD is included with the Core Retail Services fee. Additional DVDs cost $ 15 per DVD. |
| Matching Funds | Member contributes up to $2,400 annually for group advertising. |
| Additional Training | The cost will vary depending upon the type of training, duration, and location of sessions. Price does not include expenses for meeting rooms, travel, lodging, meals, or tax where applicable. |
| SAVINGSource | Will vary depending on services utilized. |
| Liquidated Damages | $10,000 per month. |
| Costs and Attorney’s Fees | Will vary under circumstances. |
| Indemnification | Will vary under circumstances. |
#3. Ace Hardware Franchise For Sale
To get ultimate success Ace Hardware Franchise for sale is a great opportunity comes into your success door. Request information today on the Ace hardware home website, Ace representative will contact you and will give an answer of doubt and question.
To become Ace Hardware Franchise, you want to thinking the given below qualities for franchise criteria:
- you should a hard worker
- you should passionate about great customer service
- you should have good communication and sales skills
- you should have a track record for success
- you should Have leadership skills
- you should have great organizational skills.