Ace Hardware Franchise Disclosure Document Analysis

Brand-New System With Zero Franchisee Operating History

Franchising began on October 28, 2022 and as of the issuance date there are zero current franchisees and zero former franchisees in the system. All disclosed outlet history relates to a single company-owned location operated by the predecessor entity.

Source: p.59

Aggressive Revenue Minimums Risk Early Territory Loss

Franchisees must achieve $200,000 in Gross Revenues in year one, $400,000 in year two, and $500,000 per year from year three onward. Failure to meet these minimums — or to respond to customer referrals within 24 hours — can result in Territory reduction or loss.

Source: p.40

Renewal Requires Then-Current Agreement With Potentially Different Terms

Upon renewal after the initial 10-year term, franchisees must sign the franchisor's then-current form of Franchise Agreement, which may differ materially from the original agreement, and must execute a general release of all claims against the franchisor.

Source: p.50