The UPS Store vs Ace Hardware: Which Is the Better Investment?

Side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Data from FDD disclosures and franchise database — updated 2026.

Retail & Services Real Data Not Investment Advice
TU

The UPS Store

Retail & Services
$178K – $403K
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VS
AH

Ace Hardware

Retail & Services
$302K – $2.2M
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
The UPS Store wins on investment range ($1.8M less) vs Ace Hardware.
Fee Burden
Ace Hardware wins on royalty rate (5.0% lower) vs The UPS Store.
Unit Count
Ace Hardware wins on total units (100 more) vs The UPS Store.
Satisfaction
Ace Hardware wins on franchisee satisfaction vs The UPS Store.

Investment & Fees

Metric The UPS Store Ace Hardware
Min Investment $178K $302K
Max Investment $403K $2.2M
Franchise Fee $30K $5K
Royalty Rate 5.0% 0.0%
Ad Fund Rate 2.5% 3.0%

Unit Economics

Metric The UPS Store Ace Hardware
Avg Unit Revenue $550K $2.2M
Avg Profit Margin N/A N/A

Scale & Growth

Metric The UPS Store Ace Hardware
Total Units 5,600 5,700
Annual Growth 0.5% 1.5%
Failure Rate 2.0% 2.0%

Franchisee Performance

Metric The UPS Store Ace Hardware
Franchisee Satisfaction 70/100 82/100

Track Record

Metric The UPS Store Ace Hardware
Years in Business 44 100
Years Franchising 44 48

Financial Requirements

Metric The UPS Store Ace Hardware
Min Net Worth Required $150K $400K
Liquid Capital Required $75K $250K

Operations

Metric The UPS Store Ace Hardware
Avg Employees 4 15
Training Weeks 2 2

Frequently Asked Questions

Is The UPS Store or Ace Hardware a better franchise investment?

The answer depends on your goals, budget, and market. The UPS Store has 5,600 total units and a 70/100 franchisee satisfaction score. Ace Hardware has 5,700 total units and a 82/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a The UPS Store franchise?

Based on data in our database, opening a The UPS Store franchise requires an initial investment of $178K – $403K. The franchise fee is $30K, with ongoing royalties of 5.0%. Always request the current FDD for exact figures.

How much does it cost to open a Ace Hardware franchise?

Based on data in our database, opening a Ace Hardware franchise requires an initial investment of $302K – $2.2M. The franchise fee is $5K, with ongoing royalties of 0.0%. Always request the current FDD for exact figures.

What is the royalty rate for The UPS Store vs Ace Hardware?

The UPS Store's royalty rate is 5.0%. Ace Hardware's royalty rate is 0.0%. That means Ace Hardware has the lower ongoing royalty burden.

Which has more locations — The UPS Store or Ace Hardware?

The UPS Store has 5,600 total units. Ace Hardware has 5,700 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is The UPS Store or Ace Hardware semi-absentee friendly?

The UPS Store is typically run as a owner-operator model. Ace Hardware is typically run as a owner-operator model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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