Complete investment analysis based on official FDD data
Total Investment
$89,250 – $153,470
Franchise Fee
$50,000
Royalty Rate
6.0%
The total initial investment to open a ACE HARDWARE PAINTING SERVICES franchise ranges from $89,250 to $153,470, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $50,000.
Midpoint estimate: $121,360
$50,000
One-time initial fee
The ACE HARDWARE PAINTING SERVICES franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the ACE HARDWARE PAINTING SERVICES brand and is included in the total initial investment range above.
Royalty Fee
6.0%
of gross revenue
Ad/Marketing Fund
2.0%
of gross revenue
Total Ongoing Fee Burden: 8.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty Fee | 6.0 | PCT | Payable monthly on the 18th day of the month based on prior month's Gross Revenues. Subject to annual reconciliation based on Minimum Annual Gross Revenues requirements. Must meet certain Minimum Annual Gross Revenues requirements per Item 12. |
| National Brand Fee | 2.0 | PCT | Payable monthly with the Royalty Fee based on prior month's Gross Revenues. Subject to annual reconciliation based on Minimum Annual Gross Revenues requirements. Must meet certain Minimum Annual Gross Revenues requirements per Item 12. |
| Software and Internet Fees | 640.0 | FIXED | Currently $640 per month, but may be changed upon 30 days' notice. Payable on the 1st of each month beginning in the first full calendar month after commencement of operations. For use of business operations software, e-mail, location website, online marketing services, maintenance of e-mail and Intranet sites, website development, search engine optimization, and related online marketing services. |
| Minimum Individual Marketing Expenditure | N/A | VARIABLE | $15,000 in first year of operations, $24,000 in second year of operations, and $30,000 for each subsequent year. Must spend minimum amount for local marketing on an annual basis. May be required to join a Local Advertising Group and pay all or a portion to the group. Note 5: Required initial marketing expense of $7,500 to $9,000 must be spent in period starting 30 days before through end of second full month after opening. |
| Meeting and Convention Fees | N/A | VARIABLE | $0 if attend and comply. $1,500 per meeting if do not attend. $750 per meeting if attend but do not stay at designated hotel or do not stay for entire meeting or convention. As incurred. |
| Transfer Fee | 10000.0 | FIXED | $10,000 standard transfer fee. No Transfer Fee for transfer to business entity wholly owned by franchisee. Reduced to $3,500 for transfers to a family member. Payable before acceptance of transfer. Additional fees may be required to outside franchise brokers or to franchisor if they find the buyer. |
| Audit Fee | N/A | VARIABLE | Cost of audit upon completion and determination of amounts due. Also pay cost if audit shows understatement of at least 2% of Gross Revenues during audit period. Any amounts unpaid, unreported, or underreported must be paid in full with late fee of 18% interest per annum. Estimated cost ranges from $2,500 to $5,000, but may be more. |
| Returned Electronic Funds Transfer Fee | 100.0 | FIXED | Imposed when an Electronic Funds Transfer transaction is not honored, in addition to any late fees and interest that may apply. Upon notice. |
| Successor Franchise (Renewal) Fee | 5500.0 | FIXED | Payable upon execution of successor Franchise Agreement. If in good standing, may acquire a successor franchise after initial term. |
| Supplier Approval | N/A | VARIABLE | Currently none, but franchisor reserves the right to charge a fee in the future. If franchisee requests approval of a supplier, franchisor may charge this fee. Only applies for items for which franchisor has previously designated an approved supplier. As incurred. |
| Additional training | 55.0 | FIXED | Current rate as of date of Disclosure Document is $55 per hour per person plus out-of-pocket expenses. Payable within 30 days of date of invoice. Opening training is provided for free. |
| Interest and late fees on late payments and/or reports | 18.0 | PCT | Not to exceed 18% per annum on all amounts owed. Also, $75 per occurrence per late report or fee. Due upon payment of late fee or submittal of late report. No amounts charged will exceed any legal limits or restrictions. |
| Costs and Attorneys' Fees | N/A | VARIABLE | Will vary under circumstances. As incurred. May be payable if franchisee does not prevail in an action based on the Franchise Agreement. |
| Indemnification | N/A | VARIABLE | Will vary under circumstances. As incurred. Franchisee will have to reimburse franchisor if held liable for claims arising from franchisee's Ace Hardware Painting Services Business. |
Category
Home Services
System Size
11 units
Franchise Score
out of 100
ACE HARDWARE PAINTING SERVICES is a home services franchise offering professional interior and exterior painting, staining, and related services. The franchise leverages the ACE Hardware brand reputation to provide quality home improvement solutions.
Median Revenue
$4,745,444
per year, per location
Estimated Owner Profit
$1,043,998
per year
Profit Margin
22.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 0.1 years
Based on midpoint investment of $121,360 and estimated annual owner profit of $1,043,998.
Avg. Annual Closure Rate
1.5%
Low risk — below industry average
Net Unit Growth
+8 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | — | — | — | — | — |
| 2023 | — | — | — | — | — |
| 2024 | — | +8 | — | — | 8 |
Based on the FDD data, here is a data-driven snapshot of the ACE HARDWARE PAINTING SERVICES franchise opportunity:
Overall Score
68/100
Moderate opportunity
Est. Payback Period
0.1 yrs
Fast payback
Risk Level
Low
1.5% annual closure rate
ACE HARDWARE PAINTING SERVICES shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $4,745,444 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full ACE HARDWARE PAINTING SERVICES franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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