Ace Hardware vs True Value
Ace Hardware vs True Value: Ace Hardware costs $579K–$1.9M to open; True Value costs $75K–$860K. Ace Hardware has 850 units, True Value has 239. SBA loan history: Ace Hardware = 1,175 loans (7.0% default); True Value = 242 loans (12.8% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet, see the comparison below.
Ace Hardware vs True Value: Capital, Scale & Lending Analysis
Data-driven differentiation pulled from FDD filings and SBA 7(a) loan-level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
True Value requires the lower minimum capital commitment ($75K vs $579K for Ace Hardware), a 672% spread. Initial franchise fees come in at $5K for Ace Hardware versus $53K for True Value, Ace Hardware has the lower entry fee.
System Scale & Tenure
On scale, Ace Hardware operates 850 units to True Value's 239, roughly 4× the system size. Ace Hardware has been operating 102 years (founded 1924) versus 78 for True Value (founded 1948), a 24-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Ace Hardware has the deeper SBA lending track record with 1,175 historical 7(a) approvals versus 242 for True Value. Ace Hardware's peak SBA year was 2021 (105 loans); True Value's peak was 2016 (17 loans). Ace Hardware's more recent peak generally indicates fresher lender appetite. Geographically, Ace Hardware concentrates in CA (120 SBA-funded units) while True Value leads in IL (27). Pick the brand whose strongest state matches yours for warmest lender introductions. Average SBA loan size on funded Ace Hardware deals is $678K vs $391K for True Value, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 7.0% for Ace Hardware and 12.8% for True Value, Ace Hardware has the cleaner historical loss profile by 5.8 points. PeerSense FPI scores come in at 60 (Moderate) for Ace Hardware and 28 (Fair) for True Value, giving Ace Hardware the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 60/100 | 28/100 |
Health Tier | Moderate | Limited |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 1,175 | 242 |
SBA Volume | – | – |
Default Rate | 7.0% | 12.8% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $579K – $1.9M | $75K – $860K |
Franchise Fee | $5K | $53K |
Royalty Rate | N/A | N/A |
Ad Fund | N/A | N/A |
Liquid Capital | $250K | $75K |
Net Worth Required | $400K | $150K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 850 | 239 |
Franchised Units | 850 | 239 |
Company-Owned | – | – |
Term Length | N/A | N/A |
Brand Information
Year Founded | 1924 | 1948 |
Franchising Since | 1960 | 1960 |
Years Franchising | 66 yrs | 66 yrs |
Headquarters | Oak Brook, IL | Chicago, IL |
Category | Hardware Stores | Hardware Stores |
Website | ||
FDD Year | N/A | N/A |
Which Is Better, Ace Hardware or True Value?
Lower upfront capital required
True Value
Ace Hardware: $579K starting · True Value: $75K starting
More SBA lender confidence
Ace Hardware
Ace Hardware: 1,175 SBA loans · True Value: 242 SBA loans
Lower historical default rate
Ace Hardware
Ace Hardware: 7.0% · True Value: 12.8%
Larger system & brand presence
Ace Hardware
Ace Hardware: 850 units · True Value: 239 units
More lender financing options
Ace Hardware
Ace Hardware: 328 unique lenders · True Value: 140 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Ace Hardware vs True Value: Franchise Funding Comparison
Comparing Ace Hardware and True Value is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $75K to $1.9M.
Both brands have active SBA lending histories, Ace Hardware with 1,175 SBA loans and True Value with 242. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Ace Hardware vs True Value, Frequently Asked Questions
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