What Are Alternative Franchise Chains to Ace Hardware Franchise
Considering alternatives to the Ace Hardware franchise? If you're looking for established brands in the home improvement sector, exploring other hardware or home goods franchises can offer similar benefits with different operational models and market positioning. Discovering the right fit for your entrepreneurial journey is key, and we can help you navigate these choices with our detailed Ace Hardware Franchise Business Plan Template.
| # | Alternative Franchise Chain Name | Description |
|---|---|---|
| 1 | Mr Handyman | Mr Handyman is a service-based home improvement franchise focusing on repair, maintenance, and improvement services, offering an alternative to traditional DIY retail by capturing the 'Do-It-For-Me' market segment. With an initial investment ranging from $118,000 to $165,000, it provides a lower entry point compared to retail hardware stores, with average gross revenues around $488,727 for established territories. |
| 2 | Handyman Connection | Handyman Connection provides a service-based model connecting skilled craftspeople with homeowners for repairs and remodeling, presenting a lower-investment alternative in the home and garden sector compared to retail stores. The franchise, requiring an initial investment of $103,750 to $164,950, taps into the growing US home services market, with average gross revenues reaching $802,159 for locations open over 12 months. |
| 3 | The Honey Do Service, Inc | The Honey Do Service, Inc. is a service-based home improvement franchise acting as a one-stop-shop for home repairs and remodeling, utilizing employee technicians for quality control as a direct alternative to DIY stores. The total investment is between $103,950 and $178,600, with average gross revenues reported at $675,321, offering a compelling option for those seeking to enter the hardware business through services. |
Key Takeaways
- Ace Hardware's main competitors in franchising are dealer-owned cooperatives like True Value and Do it Best, offering similar support for independent hardware store owners.
- Top hardware franchises are typically cooperative structures, providing buying power, distribution efficiency, and brand recognition, along with comprehensive support like extensive SKUs and marketing campaigns.
- Hardware franchise investments vary significantly, with Ace Hardware and True Value having total investments from around $292,000 to over $2,100,000, while Do it Best requires a member deposit and total startup costs between $500,000 and $1,200,000.
- Low-cost hardware franchise options are scarce in the retail sense; under $150,000 investments are typically for service-based home improvement franchises like Mr Handyman.
- Service-based franchises like Mr Handyman, Handyman Connection, and The Honey Do Service offer alternatives to traditional retail hardware stores, focusing on repair and remodeling services with lower initial investments.
What Alternative Ace Hardware Franchise Unit Options Exist?
For those exploring opportunities in the hardware retail business, understanding the landscape beyond a single franchise is crucial. While the familiar red and white signage of Ace Hardware is widespread, several other franchise business models cater to aspiring independent hardware store owners. These alternatives often provide similar benefits, such as strong brand recognition, established supply chains, and marketing support, making it possible to compare hardware franchises effectively.
Who are the main Ace Hardware competitors in franchising?
- The primary Ace Hardware franchise alternatives in the hardware retail business as of June 2025 are other dealer-owned cooperatives like True Value and Do it Best. These offer similar franchise business models focused on supporting the independent hardware store owner.
- To put this into perspective when you compare hardware franchises, Ace Hardware has over 5,900 locations globally as of early 2025, with reported 2024 revenues exceeding $22 billion. True Value supports approximately 4,500 retail locations with 2024 revenues around $8 billion, while Do it Best serves over 3,800 member-owned locations with reported 2024 sales of $48 billion.
- Beyond these large cooperatives, other hardware store franchise opportunities exist in more specialized niches. These include home and garden franchise concepts or service-oriented home improvement franchise brands like Mr. Handyman, which focuses on repair services rather than pure retail.
What defines the best hardware franchises?
- The best hardware franchises are typically defined by their cooperative structure, where store owners are also shareholders. This model provides significant buying power, distribution efficiency, and national brand recognition, while still allowing for local operational autonomy.
- As of 2025, top-tier hardware franchises provide comprehensive support. This includes access to over 75,000 SKUs from network warehouses and national marketing campaigns with budgets exceeding $150 million annually, alongside ongoing training programs. For instance, Ace Hardware's 2025 support package includes digital marketing tools that have proven to increase online sales by an average of 15% year-over-year for participating stores.
- A key benchmark for success is the return on investment. Successful franchisees in top systems report average gross profit margins between 42% and 45% on retail sales, with top-quartile stores achieving net operating incomes of 8-10% of total revenue in fiscal year 2024. Understanding how the Ace Hardware Franchise works can provide a baseline for these comparisons.
Tips for Evaluating Hardware Franchises
- Analyze the Cooperative Model: Understand how being a shareholder in a cooperative impacts your buying power and access to resources.
- Review Financial Performance: Look for franchises with consistent revenue growth and healthy profit margins, ideally in the 40%+ gross profit range.
- Assess Support Systems: Evaluate the breadth and quality of training, marketing, and operational support provided by the franchisor.
What Are The Investment Level Alternatives?
How does the hardware store franchise cost vary?
When considering hardware store franchise opportunities, the initial investment can differ significantly. For an Ace Hardware Franchise Unit in 2025, the total investment typically ranges from $292,000 to over $2,100,000. This broad spectrum is largely influenced by factors such as the size of the store you plan to open, whether you lease or purchase the real estate, and the amount of initial inventory you stock. The upfront franchise fee itself is a flat $5,000.
Comparing this to other major players, the investment for a True Value store as of 2025 is quite similar, generally falling between $400,000 and $1,500,000. This includes a recommended inventory investment that can be around $50-$70 per square foot of retail space.
Do it Best offers a different franchise business model. Instead of a traditional franchise fee, they operate on a member-deposit system. The initial deposit is around $10,400. However, the total startup costs for a new store, encompassing inventory and the necessary build-out, are projected to be between $500,000 and $1,200,000 in 2025. This brings the overall hardware store franchise cost into a comparable range across these prominent cooperative organizations.
Are there low cost hardware franchise options available?
Finding truly low-cost hardware franchise options, especially within the traditional retail store format, is challenging. This is primarily due to the inherent costs associated with stocking substantial inventory and securing prime real estate. Most opportunities with an entry cost below $150,000 are typically service-based home improvement franchise brands, rather than full-scale retail locations.
For instance, a home improvement franchise like Mr Handyman has a total investment range of $118,000 to $165,000 as of 2025. The lower cost here is a direct result of not requiring a large retail footprint or extensive inventory. Instead, the focus is on providing mobile repair and maintenance services, making it a more accessible entry point into the home improvement sector.
Another avenue to explore for potentially lower entry costs involves looking at alternatives to franchising altogether. Purchasing an existing independent hardware store could present a more budget-friendly option. In 2024, data suggested that the average sale price for small, non-franchised hardware stores located in rural areas typically fell between $250,000 and $450,000, which usually includes the existing inventory.
Tips for Evaluating Hardware Franchise Investments
- Understand the Total Investment: Beyond the initial franchise fee, meticulously account for real estate, inventory, equipment, marketing, and working capital. The FDD provides a detailed breakdown.
- Compare ROI Across Models: Analyze the average revenue per unit for different hardware store franchise opportunities. For example, as of 2023, Ace Hardware had 4,645 franchised units, with average annual revenues per unit reaching approximately $3,013,364.
- Consider Service vs. Retail: If a full retail hardware store franchise cost is prohibitive, explore service-based home improvement franchises. These often have lower overhead and a different operational focus.
For those interested in a deeper dive into the specifics of this particular brand, you can read more about What are the Pros and Cons of Owning an Ace Hardware Franchise?
What Are The Alternatives To Franchising a Hardware Business?
While the idea of joining a well-established franchise like Ace Hardware is appealing for many, it's essential to explore all avenues when considering opening a hardware retail business. Understanding the alternatives can provide a clearer picture of what starting a hardware store independently entails and how it stacks up against franchise models.
What is required for starting a hardware store independently?
Embarking on the journey of starting an independent hardware store requires a different set of preparations compared to a franchise. For instance, instead of leveraging a franchisor's established relationships, an independent owner in 2025 would need to personally negotiate terms and pricing with a diverse range of distributors and manufacturers, potentially managing relationships for 20,000-30,000 SKUs to remain competitive.
The capital outlay for an independent venture is often steeper, particularly for inventory. Without the collective buying power that franchise co-ops provide, independents may require 15-20% more working capital for initial stock in 2025 to achieve comparable pricing to franchised locations. Beyond inventory, significant investment is needed for brand development, marketing strategies, and building operational systems from the ground up. Initial local branding and marketing campaigns for an independent store in 2025 could range from an estimated $30,000 to $75,000.
How does an independent hardware store perform against a franchise?
Independent hardware stores can cultivate strong community loyalty, but they often face hurdles in areas like purchasing power and brand recognition. In 2024, data indicated that stores affiliated with co-ops, such as Ace Hardware, generally benefited from a 5-7% cost of goods advantage over the average independent store due to their bulk purchasing capabilities.
While franchise fees, including royalties and marketing contributions, typically range from 4-8% of gross revenue, the operational efficiencies, broader marketing reach, and robust supply chain benefits often compensate for these costs. Projections for 2025 suggest that franchised local hardware store units could achieve, on average, a 3-4% higher net profit margin compared to their independent counterparts. However, independents retain complete autonomy over their product selection, enabling hyper-local customization. This freedom means they might miss out on exclusive proprietary brands, like certain paint lines that can drive significant category sales, as seen with one major franchise brand's paint line accounting for over 12% of paint category sales in its franchised stores in 2024.
For those considering the franchise route, it's beneficial to understand the financial commitments. The initial investment for a franchise can range widely, from a low of $132,600 to a high of $1,990,180, with a franchise fee of $5,000 and ongoing royalty and marketing fees of 2% each. The required cash on hand typically falls between $90,000 and $205,000, with a net worth requirement of $200,000 to $400,000. In 2023, there were 4,645 franchised units, demonstrating a growing franchise presence in the hardware retail sector.
When comparing franchise models, it's important to look at performance metrics. Average annual revenue per unit can reach approximately $3,013,364, with a median of $2,895,085. The breakeven time is often cited as around 12 months, with a similar payback period for the initial investment. Understanding how much an owner can earn is crucial; for insights into this, consider reading How Much Does an Ace Hardware Franchise Owner Make?
Tips for Evaluating Hardware Retail Business Models
- Analyze the Supply Chain: Investigate the franchisor's supply chain efficiency and purchasing power. For independents, assess your ability to build reliable supplier relationships.
- Compare Fee Structures: Understand all franchise fees (royalty, marketing, etc.) and compare them to the costs of building your own marketing and operational infrastructure.
- Assess Brand Strength: Evaluate the brand recognition and customer loyalty of franchise options versus the potential to build your own local brand identity.
- Review Financials Carefully: Scrutinize the franchisor's financial performance data and compare it with realistic projections for an independent operation.
True Value
What is the True Value investment and business model?
True Value operates as a dealer-owned cooperative, a model that shares similarities with other hardware franchises. For 2025, the estimated total investment to launch a True Value store ranges from $400,000 to $1,500,000. A significant draw of this model is the absence of ongoing royalty fees, a key differentiator when you compare hardware franchises.
The financial requirements to become a True Value hardware store franchise owner include having at least $150,000 in liquid capital and a minimum net worth of $400,000. Members gain access to the co-op's extensive distribution network, which comprises 13 regional distribution centers, and can choose from a product catalog of over 70,000 items.
In 2024, True Value emphasized its 'Destination True Value' store format, a strategic modernization initiative. Participating stores that adopted this format reported an average sales increase of 8% in the first year following their remodels.
How does True Value support its hardware retail business owners?
True Value offers comprehensive support to its business owners. This includes the development of customized marketing plans, a customer loyalty program known as 'True Value Rewards,' and a robust e-commerce platform that facilitates online ordering with in-store pickup options.
The cooperative also provides expert store planning and design services. For 2025, their programs are specifically geared towards optimizing store layouts to maximize sales in high-margin product categories, such as paint and lawn care. Furthermore, their private-label brands, like 'Master Mechanic' tools, are designed to offer members higher profit margins, typically 10-15% more than comparable national brands.
Financially, True Value distributes a portion of its profits back to its members annually through patronage dividends. In the fiscal year 2024, these dividends effectively reduced the cost of goods for participating members by an average of 25%.
| Investment Range | $400,000 - $1,500,000 (2025 Estimate) |
| Liquid Capital Required | $150,000 |
| Net Worth Required | $400,000 |
| Royalty Fees | None |
| Average Sales Increase (Post-Remodel) | 8% (2024 Data) |
| Private Label Margin Increase | 10-15% |
| Patronage Dividend Impact (2024) | Reduced Cost of Goods by ~25% |
Key Considerations for Choosing a Hardware Franchise
- Understand the Cooperative Model: True Value's dealer-owned cooperative structure means you are part of a collective, sharing in benefits and decision-making. This differs from traditional franchise models where you pay royalties.
- Evaluate Support Services: Assess the breadth and depth of marketing, e-commerce, and operational support offered. True Value's focus on store planning and private label brands can be significant advantages.
- Analyze Financial Returns: Consider the potential for patronage dividends, as seen with True Value, which can directly impact your profitability and reduce your overall cost of goods sold.
Do It Best
When exploring alternatives to established franchise models, the cooperative structure of Do it Best presents a compelling option for those looking to start a hardware retail business.
What are the Do it Best hardware store franchise requirements?
Do it Best operates as a member-owned cooperative, focusing on hardware, lumber, and building materials. For those looking to join in 2025, there isn't a traditional franchise fee. Instead, prospective members are required to make a one-time stock investment, which is approximately $10,400.
The overall investment to open a new Do it Best store typically ranges from $500,000 to $1,200,000. A key requirement for membership is the presentation of a robust business plan and proof of sufficient funding. Do it Best generally recommends having liquidity equivalent to about 25% of the total project cost. This cooperative model offers a distinct advantage in that it allows for greater flexibility in store branding compared to more rigid franchise business models. Members can opt to co-brand with Do it Best or maintain their own independent local hardware store name while still benefiting from the co-op's collective buying power.
How does Do it Best compare as a home improvement franchise alternative?
Do it Best stands out as a strong alternative for a home improvement franchise, offering access to an extensive inventory of over 67,000 items through its warehouses, with millions more available via direct ship programs. The cooperative has a particularly strong foothold in the lumber and building materials (LBM) sector, making it a robust choice for those interested in this niche within the hardware retail business.
One of the most significant advantages of the Do it Best model is its rebate program. The cooperative is known for distributing one of the industry's highest rebate percentages, effectively returning nearly all of its profits back to its members. In fiscal year 2024, Do it Best reported a record-breaking rebate distribution, exceeding $140 million for its members, which directly translates to a lower cost of goods for each store. Furthermore, as of 2025, Do it Best is equipping its member stores with advanced technology solutions. This includes a proprietary point-of-sale system and e-commerce platforms that have demonstrably helped member stores boost their online sales. Since implementation, these platforms have contributed to an average annual increase of 20% in online sales for member stores.
| Membership Investment (2025) | Approx. $10,400 (Stock Investment) |
| Estimated Total Investment | $500,000 - $1,200,000 |
| Recommended Liquidity | 25% of total project cost |
Tips for Evaluating Cooperative Membership
- Analyze Rebate Structures: Understand how cooperative rebates are calculated and distributed to assess their impact on your cost of goods.
- Assess Technology Offerings: Evaluate the technology solutions provided, such as POS systems and e-commerce platforms, and their potential to drive sales growth.
- Review Branding Flexibility: Consider the degree of freedom you'll have in branding your store and how it aligns with your vision for an independent hardware store.
For comparison, starting an Ace Hardware franchise, for instance, involves different financial commitments and operational structures. While Ace Hardware is a well-known name in the industry, understanding the nuances of cooperative versus traditional franchise models is crucial. To dive deeper into the specifics of an Ace Hardware franchise, you can find more details on How Much Does an Ace Hardware Franchise Cost?
Mr Handyman
How does this service-based DIY store franchise compare?
When considering alternatives to a traditional hardware store franchise, a service-based home improvement franchise like Mr Handyman presents a different approach within the broader DIY and home repair market. Instead of focusing on retail inventory, this model centers on providing repair, maintenance, and improvement services to homeowners.
This distinction is key for entrepreneurs looking to enter the home improvement sector without the complexities of managing a physical retail space and its associated inventory. As of 2025, the average job ticket for a Mr Handyman franchisee is around $450. It's not uncommon for top-performing franchisees to handle over 2,500 jobs annually, showcasing the potential volume of work.
While a hardware retail franchise targets customers looking to do projects themselves, Mr Handyman captures the 'Do-It-For-Me' segment. Market analysis from 2024 indicates that this service-oriented segment is growing at a robust pace of 5% per year, outpacing the traditional DIY retail segment. This makes it a strong contender for those interested in the home services industry.
What is the investment and revenue potential for Mr Handyman?
The initial investment for a Mr Handyman franchise in 2025 typically ranges from $118,000 to $165,000. This figure includes a franchise fee of $59,900. This is a considerably lower upfront hardware store investment compared to many retail-based franchise opportunities.
The ongoing financial commitments include a royalty fee of 7% on gross revenues and a 2% marketing fee. According to their 2024 Franchise Disclosure Document (FDD), the average gross revenue for a single territory, among franchisees operating for at least two years, was $488,727.
The franchise model is designed for scalability. By year-end 2024, over 30% of Mr Handyman franchisees owned multiple territories. This multi-unit ownership strategy allows for significant expansion of their service area and a greater potential to increase overall revenue over time.
| Investment Range | Franchise Fee | Royalty Fee | Marketing Fee | Average Annual Revenue (2+ years) |
| $118,000 - $165,000 (2025) | $59,900 | 7% | 2% | $488,727 (2024 FDD) |
Tips for Evaluating Service-Based Franchises
- Focus on Lead Generation: Understand the franchisor's strategy for generating customer leads, as this is crucial for a service-based business.
- Assess Training and Support: Evaluate the quality of training provided for both business management and the specific services offered.
- Review Technician Recruitment: Consider how the franchise model supports the recruitment and retention of skilled technicians.
Handyman Connection
When exploring alternatives to a traditional hardware store franchise, a service-based model like Handyman Connection presents a compelling option for entrepreneurs interested in the home and garden sector.
Is Handyman Connection a good home and garden franchise alternative?
Handyman Connection offers a distinct approach within the home and garden franchise landscape. Instead of focusing on retail product sales, this franchise connects skilled craftspeople with homeowners for a variety of repair and remodeling tasks. This service-oriented model is particularly appealing for those who want to be involved in the home improvement industry but prefer a lower initial investment compared to establishing a physical retail store. The business thrives on the consistent demand for reliable home repair services. In fact, the US home services market is expected to see substantial growth, projected at 65% annually through 2025. While a hardware store provides the products for gardening and DIY projects, Handyman Connection directly delivers the services, such as deck repair, fence installation, and shed assembly, capitalizing on homeowners' project-based spending.
What are the Handyman Connection franchise costs and requirements?
For those considering this business model, understanding the investment is crucial. As of June 2025, the initial investment for a Handyman Connection franchise typically ranges from $103,750 to $164,950. This investment includes the initial franchise fee, which can vary based on the territory size, from $55,000 to $75,000. The requirements for this franchise lean more towards strong business management and marketing acumen rather than prior retail experience. Candidates should possess a minimum net worth of $150,000 and have at least $60,000 in liquid capital. Looking at financial performance, the average gross revenue for a Handyman Connection franchise location that had been open for over 12 months reached $802,159, as indicated by 2024 FDD data. This highlights the significant revenue potential within this service-based alternative to a traditional hardware retail business.
Tips for Evaluating Service-Based Franchises
- Focus on Demand: Research the local demand for the specific services offered.
- Understand the Support System: Evaluate the franchisor's training, marketing, and operational support for franchisees.
- Assess Craftsperson Quality: The success of a handyman service hinges on the quality of the professionals you connect with clients.
| Initial Investment Range | Franchise Fee Range | Average Gross Revenue (12+ months) |
| $103,750 - $164,950 | $55,000 - $75,000 | $802,159 |
For a deeper dive into the broader hardware franchise market and to understand the landscape of options, you can explore What are the Pros and Cons of Owning an Ace Hardware Franchise? This comparison can help you better understand how different franchise business models stack up against each other.
The Honey Do Service, Inc
How does The Honey Do Service model work?
As an alternative to a traditional DIY store franchise, The Honey Do Service, Inc. offers a service-based approach to home improvement. This franchise specializes in a wide range of home repairs and remodeling projects, positioning itself as a comprehensive solution for homeowners who prefer not to handle these tasks themselves. Their business model focuses on providing these services through skilled employee technicians, ensuring consistent quality and control over the work performed. This contrasts with models that might rely heavily on subcontractors. The demand for such professional home services saw a notable increase, with estimates suggesting a 12% rise in demand during 2024 as more homeowners sought expert assistance with their renovation needs.
What is the investment for this hardware business alternative?
For those considering franchising a service-based business in the home improvement sector, The Honey Do Service, Inc. presents a different investment profile. As of 2025, the estimated total investment for this type of franchise ranges between $103,950 and $178,600. This figure includes an initial franchise fee of $45,000. The brand employs a tiered royalty fee structure, commencing at 6% and decreasing as the franchisee's revenue grows, complemented by a 1% national marketing fund fee. This approach is designed to support and reward business growth.
Financial performance data from their 2024 Franchise Disclosure Document (FDD) indicates that the average gross revenue for their franchised locations reached approximately $675,321, with an average gross profit margin of 51.2%. These figures highlight its potential as a compelling hardware store investment alternative for entrepreneurs looking for a service-oriented business model.
| Investment Range | $103,950 - $178,600 (as of 2025) |
| Franchise Fee | $45,000 |
| Royalty Fee | Starts at 6%, decreases with revenue growth |
| Marketing Fee | 1% |
| Average Gross Revenue (2024 FDD) | $675,321 |
| Average Gross Profit Margin (2024 FDD) | 51.2% |
Key Considerations for Service-Based Franchises
- Focus on Labor Quality: Unlike retail hardware franchises, success hinges on the skill and reliability of your service technicians.
- Customer Service is Paramount: Building trust and delivering excellent customer experiences are crucial for repeat business and referrals.
- Operational Efficiency: Managing scheduling, parts inventory, and technician deployment effectively directly impacts profitability.
- Marketing Reach: Targeting local homeowners and demonstrating your value proposition is key to securing a steady stream of projects.
When comparing various hardware store franchise opportunities, it's important to look beyond traditional retail models. For instance, while an Ace Hardware franchise focuses on product sales, businesses like The Honey Do Service, Inc. tap into the home repair and maintenance segment. Understanding the nuances of different franchise business models is vital for making an informed decision. For a deeper dive into the financial aspects of owning a hardware franchise, you might want to explore How Much Does an Ace Hardware Franchise Owner Make?