Ace Hardware Corporation

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About the Company
A globally trusted, locally embraced brand that according to the Gallup Organization, leads the entire home improvement industry in un-aided slogan recall. Ace Hardware was ranked “Highest in Customer Satisfaction among Home Improvement Stores Four Years in a Row” by J.D. Power and Associates 2007-2010 Home Improvement Retail Store StudiesSM.

For over 80 years Ace has been steadfastly committed to the independently owned, cooperative business model. And with projected annual growth of 5.7 percent from 2005 to 2010 in the $300 billion home improvement industry (source: Hardware Retailing, Dec. 2006), your future is not contingent on the next new fad.

We understand your business dreams are just that – your dreams. No franchise fees, no royalty fees; you’re the owner. Ace is unlike any other business or franchise opportunity on the planet. Profits the company earns are distributed to our retailers each year.

The Concept
Ace has been America’s neighborhood hardware retailer for eight decades. Throughout the decades – through booms and busts, war and peace, fads and legitimate breakthroughs – we’ve been a cornerstone of neighborhood commerce. Today, the opportunity has never been greater. The “do-it-yourself” market is thriving. And Ace Hardware remains poised to serve and thrive, as well.

Today, Ace retailers have built their annual retail sales to more than $13 billion….and the future looks bright. The hardware industry is not only stable, it’s expanding. America is fast becoming a nation of do-it-yourselfers. Just take a look at your local TV listings, brimming with home-improvement programming (source: Hardware Retailing Dec. 2006).

What’s more, studies indicate that home-improvement sales will grow at 5.7 percent from 2005 to 2010 (source: Do it Yourself Retailing Dec. 2006). And according to a 2006 Yankelovich study, the average homeowner is expected to do three projects over the next year, primarily in the areas of painting and landscaping, with a total spending budget of approximately $2,000.

Strength in Numbers
Since the Ace Hardware cooperative structure allows our buyers to negotiate with combined buying-power of over 4,800 locations, our store owners have a significant advantage over non-affiliated stores. Our regional and state-of-the-art distribution centers and computerized ordering give you efficient access to more than 70,000 items in every major hardware category.

Your Ace Hardware store will also be equipped with a proprietary computerized management system, which will provide accurate sales transaction processing, detailed sales and expense information, and extensive inventory management and ordering features to help you run a “tight ship.”

But being a part of the Ace family has other advantages – shared innovations, corporate marketing insight and state-of-the-art retailing design, to name a few. You’ll be backed by national media advertising, proven business models and a corporate culture that is driven by service and innovation.

A true co-op atmosphere Including owners, store personnel, retail support and corporate employees, there are more than 80,000 members in the Ace Hardware team. Their combined talents strengthen the Ace name. Their vision propels the future of the corporation. And their dedication and expertise works to help all Ace Hardware owners run their business efficiently.

Products
As an Ace Hardware owner, you’ll be able to offer your customers thousands of high-quality products – from paint to pet supplies. Today’s do-it-yourselfers are updating complex plumbing, maintaining impeccable yards, installing cabinets, shingling roofs, cutting glass … you name it, they’re doing it! But not without your help.

That’s because as an Ace Hardware owner you’ll build your business on the solid foundation of the Ace retail concept. Through a variety of store sizes and design possibilities, your Ace Hardware store will provide the extensive product line you’d expect from a major chain. (In fact, you’ll have access to over 70,000 high-quality products from our fifteen world class distribution centers located throughout the country.) Yet, you will still be able to maintain the personal and one-on-one help your customers deserve. And with services that include key making, equipment rental and repair, you’ll have a diverse and productive set of revenue centers, as well.

One-stop shopping. One powerful brand. The Ace® product assortment includes more than 10,000 items – all value priced. Your store will stock paint and paint supplies, plumbing and heating materials, lawn and garden products, electrical supplies and accessories, outdoor living products, building supplies, hand tools and power tools, hardware and fasteners, housewares and small appliances, ladders and cleaning supplies – all under the Ace name.

To provide more value for customers owners may also stock holiday and seasonal decorations, sporting goods, pet supplies, marine supplies, pool chemicals, automotive merchandise, fire extinguishers and safety equipment, live goods, grill and grill accessories, propane exchange, and other exciting niche opportunities.

Incentive Benefits
Qualified individuals will receive our exclusive incentive package of up to $255,000 that can assist in your store’s opening.

Our incentive package helps prepare you for ownership and can drive down the total investment for a business by nearly 20 percent. Additionally, an enhanced incentives package is available when you decide to open additional stores.

With 4,600 hardware, home center and building material stores that generate annual retail sales of more than $12 billion, Ace is the largest retailer-owned hardware cooperative in the industry. For over 80 years, Ace has been steadfastly committed to the independently owned, cooperative business model. And with projected annual growth of 5.7 percent from 2005 to 2010 in the $300 billion home improvement industry (source: Hardware Retailing, Dec. 2006), your clients’ future is not contingent on the next new fad.

Training & Support
Starting your own business is one area where you don’t want to do it yourself. When you become an Ace Hardware owner, you gain the support of a dedicated and experienced team of experts. Our program provides you with extensive training to help you make an effective entry into the DIY Consumer Market and to provide you with the programs, systems and support that will enable you to keep your Ace Hardware store(s) running at peak efficiency for years to come.

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