Ace Hardware

The franchise fee of $5,000 is significantly lower than the typical retail franchise fee range of $25,000-$40,000. What accounts for this substantial difference, and are there additional upfront costs not reflected in the franchise fee?

Three litigation cases have been filed against Ace Hardware in the past 3 years. Can you provide details on the nature of each case, the outcomes or current status, and what changes have been implemented in response?

Your 1-year turnover rate of 1.3% is below the typical retail range of 1.8-8.73%. What factors contribute to this lower turnover, and how does this compare to your competitors?

The franchise agreement lists only 5 termination causes compared to the typical range of 14-19 causes. Are there additional grounds for termination that are not explicitly listed, and how are disputes over termination rights typically handled?

The non-compete clause specifies 1 year duration without a mileage radius, compared to the typical 2-year duration. How does this limited restriction protect franchisees from direct competition after exit?

Your system requires binding arbitration in Chicago, Illinois. What are the typical costs of arbitration proceedings, and are there any geographic hardships or cost barriers for franchisees located far from Chicago?

Of the 75 units closed in 2023 and 65 units closed in 2024, what were the primary reasons for closure, and what percentage were due to financial underperformance versus other factors?

With territory being non-exclusive and without encroachment protection, how does Ace Hardware protect existing franchisees from new units being opened within their service area?

What specific termination triggers can the franchisor act on with just 3 days' notice for payment delinquency, and what payment grace period or cure opportunity is provided before this accelerated termination process begins?

The technology fee of $315.25 annually appears as a separate ongoing cost. What specific technology services and systems does this cover, and how has this fee changed over the past 5 years?

Can you provide the median and average gross sales figures from franchisees, as Item 19 financial performance disclosure is available? What percentage of franchisees exceed these averages?

How many of the 112 unit transfers in 2024 involved internal family transfers versus third-party sales, and what percentage of transfer requests are approved?

What support and training does the franchisor provide to new franchisees given the System Health score of 78 falls above the typical range, and how does this compare to your top competitors?

The Investment Cost score of 62 falls below the typical range of 75. What specific cost factors contribute to this lower-than-expected score, and what are the total initial investment requirements?

With zero terminations in the past 3 years and no non-renewal rate reported, are franchises able to renew indefinitely as long as they are compliant, or are there renewal caps or conditions?

What were the specific grounds and outcomes of the 3 litigation cases filed against the franchisor, and do any of these relate to franchisee protections or contractual disputes?

Can you clarify the terms under which franchises can be transferred, given that transfer fee information is not disclosed? Are there consent requirements or restrictions on transferring to specific buyer types?

The Territory score of 50 is below the typical range of 60-85. Given the non-exclusive territory model, how do you define and enforce territories, and what happens if overlapping franchises underperform?

What is the policy on franchise renewal, including renewal fee structure (if applicable), required updates to agreements, and any conditions that might prevent renewal despite good performance?

In the 2024 data, 19 units ceased operations for reasons other than closure or termination. Can you specify what 'ceased other' means and whether franchisees retained any residual rights or refunds for these situations?