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Do It Best Franchise ProfileRetail Franchises > Specialty Retail |
How Can You Start Your Own Do It Best Franchise?
To begin your journey with Do It Best, you will need to prepare for an initial investment that ranges from a low of $8,500 to a high of $1,342,500. The process typically begins with ensuring you meet the financial requirements, which include a net worth between $500,000 and $1,000,000 and available liquid cash of at least $150,000. Once you pay the initial franchise fee of $8,500, you can begin working with the cooperative to establish your hardware or home improvement location. With no corporate-owned units, the brand is entirely focused on the success of its independent member-owners.
What Makes the Do It Best Business Model Unique?
One of the most striking features of the Do It Best franchise model is the absence of ongoing royalty and marketing fees, which are both set at 0%. This structure allows store owners to retain more of their earnings to reinvest in their local business. While the average annual revenue per unit is recorded at $150,000, some high-performing locations have seen revenues reach up to $1,000,000. This member-owned cooperative structure is designed to provide the buying power of a large chain while maintaining the independence of a local hardware store.
Why Should You Consider Joining the Do It Best Network?
Joining Do It Best places you within a rapidly growing network that has expanded from 3,233 franchised units in 2022 to 3,407 units by 2024. This consistent growth signals a strong and stable brand presence in the home improvement industry. Prospective owners should be prepared for a long-term commitment, as the data indicates an average breakeven time of 36 months and an investment payback period of approximately 52 months. If you are looking for a proven system with a massive scale and a focus on member profitability rather than corporate fees, this could be the right opportunity.
Is a Do It Best Franchise the Right Investment for You?
Deciding to open a Do It Best location requires a balance of financial readiness and a passion for serving your community's hardware needs. With a median annual revenue per unit falling between $500,000 and $1,000,000, the potential for a sustainable business is evident. However, it is essential to conduct thorough due diligence, including reviewing the Franchise Disclosure Document and analyzing your local market competition. If you have the required capital and are ready to manage a high-volume retail operation, you could become a part of this expansive and growing cooperative.
Do It Best Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Do It Best Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Total Units | 0 | 3233 | 3371 | 3407 |
| Net Change YoY | N/A | +3233 | +138 | +36 |
| Franchised Units | N/A | 3233 | 3371 | 3407 |
| Net Change YoY | N/A | N/A | +138 | +36 |
| Corporate Units | 0 | 0 | 0 | N/A |
| Net Change YoY | N/A | 0 | 0 | N/A |
Financial Requirements
To qualify for a Do It Best franchise, prospective owners must meet specific financial benchmarks, including a required net worth ranging from $500,000 to $1,000,000. Additionally, a minimum of $150,000 in liquid cash is required to ensure the business has sufficient capital for initial operations and stability.
Investment Costs
The initial investment for a Do It Best location varies significantly depending on the scale of the store, with a low-end entry point of $8,500 and a high-end investment reaching $1,342,500. The initial franchise fee is set at a flat $8,500, making the entry cost accessible for various types of hardware and home improvement retail models.
Ongoing Fees
One of the most distinctive features of the Do It Best model is its member-friendly fee structure. Currently, the franchise reports a 0% royalty fee for new units and a 0% marketing fee. This allows store owners to retain a larger portion of their gross sales to reinvest into their inventory and local business operations.
Unit Growth and Presence
Do It Best has shown consistent growth in its franchised network over the last several years. The number of franchised units increased from 3,233 in 2022 to 3,407 in 2024. Notably, the organization operates entirely through its members, maintaining zero corporate-owned units, which underscores its commitment to the independent dealer model.
Performance and Revenue
The revenue potential for Do It Best units shows a wide range, with the highest annual revenue per unit reaching $1,000,000 and a median annual revenue also falling within the $500,000 to $1,000,000 bracket. While the lowest reported annual revenue per unit is cited at $2,974,000, the average annual revenue per unit is listed at $150,000.
Timeline to Profitability
Investors should plan for a long-term commitment when opening a new location. Based on the latest data, the average time to reach a breakeven point is 36 months. The total investment payback period is estimated at 52 months, reflecting the steady and gradual nature of the hardware and home improvement retail industry.
Frequently Asked Questions
The total initial investment for a Do It Best franchise ranges from a low of $8,500 to a high of $1,342,500, depending on the scale and type of location.