Do It Best Hardware

Do it Best Corp., commonly described in some materials as a Do It Best Hardware franchise, began in 1945 when Arnold Gerberding founded Hardware Wholesalers, Inc., or HWI, in Fort Wayne, Indiana. Gerberding recognized that independent retailers had difficulty obtaining competitive volume pricing from vendors. He responded by creating a member owned cooperative in which approximately 100 independent business owners from Illinois, Indiana, Michigan, and Ohio combined their purchasing power. Those hardware stores became members and sole shareholders rather than ordinary customers. That structure still shapes the business, allowing local owners to retain independence while sharing resources and purchasing advantages. Some sources use the term franchise fee, but the core operation is a cooperative that supplies hardware, lumber, and building materials to thousands of independent retailers. As of 2024, Do it Best Corp. supported over 8,000 member locations worldwide, including stores throughout the United States and in more than 60 other countries. The company operates in the home centers category, whose market includes hardware, lumber, and building materials and represents a multi billion dollar total addressable market. Demand is tied to homeownership, renovation cycles, and essential repairs. The cooperative gives local owners access to a recognized brand and shared support while preserving local ownership. In December 2022, the company moved its headquarters to the Electric Works campus in Fort Wayne, Indiana, where it became an anchor tenant in Building 26.

Home centers represent a substantial and resilient market that is consistently valued in the hundreds of billions of dollars each year in the United States. The category has often grown faster than general retail. An aging housing stock creates continuing needs for repairs, maintenance, and renovation, while interest in Do It Yourself projects supports spending on hardware, lumber, and building materials. Increased home equity and the desire to personalize living spaces have contributed to that demand. Remote work has also encouraged people to invest in their homes and work areas. Independent stores can compete through specialized knowledge, personal customer service, and product selections suited to local communities, rather than the more generic assortments often associated with large big box chains. The retail portion of the industry remains fragmented, with thousands of independent stores serving local markets alongside large national competitors. That fragmentation gives Do it Best Corp. a role in combining purchasing power and providing services that help independent businesses compete. Interest rate changes can affect new home construction, and material costs can affect renovation budgets. The cooperative’s scale supports vendor negotiations and resource allocation when those conditions change. Because home improvement demand is often based on essential repairs and maintenance rather than discretionary purchases, the category can retain a degree of stability during broader economic shifts.

The financial entry point depends on whether a buyer is considering cooperative membership or the separate Do It Best Hardware franchise opportunity. Standard membership in the Do it Best Corp. cooperative requires an initial investment of $4,400. That amount includes a $1,000 payment for 20 Common shares, which is refundable upon a member’s request. Some sources describe the cooperative membership amount as a franchise fee of $4,400, while another source lists $8,500. The specific Do It Best Hardware franchise opportunity described in the franchise data lists a franchise fee of $74,090. That amount is above the broader franchise category average, where fees often range from $25,000 to $50,000. Investment requirements also differ by format. A new retail hardware or lumber business joining the cooperative has a total initial investment range of $440,400 to $1,128,400. The 2025 Franchise Disclosure Document for the cooperative reports a total investment range of $852,500 to $1,580,500 for a full scale retail operation. Other sources report ranges of $537,000 to $1.3 million, $536,400 to $1,296,400, and $564,500 to $1,342,500. The separate Do It Best Hardware franchise opportunity lists a lower initial investment range of $100,400 to $1.06 million, which may reflect different operating formats or market entry approaches. Required liquid capital for cooperative membership includes estimated working capital of $72,000 to $168,000. A minimum cash requirement of $150,000 is also cited. Do it Best Corp. does not charge traditional royalties based on a percentage of gross sales. Traditional franchise systems commonly charge royalties of 4% to 8%. Ongoing cooperative charges include a basic member services fee of $75 per month, delivery charges that vary according to weekly purchases, and an interest charge of 1.5% per month on overdue amounts. Enhanced and advanced service tiers are available for additional fees. Members participate in advertising campaigns and may elect programs such as Managed Marketing. The cooperative’s ownership costs therefore center on services and purchasing volume rather than percentage based revenue sharing, which creates a different cost structure from a traditional franchise and may suit high volume operators.

A Do it Best Corp. member operates an independent hardware, lumber, or building materials business while using the cooperative’s infrastructure and branding. Members keep their own business identity and receive the benefit of collective purchasing, including volume pricing from vendors. The source does not specify staffing requirements, but these retail operations require personnel to manage inventory, assist customers, and handle sales in a comprehensive home center. The model primarily supports independently owned and operated stores, suggesting that an owner operator may take an active role in daily management. Specific training details, including duration and location, are not provided. The cooperative’s operating support covers areas such as inventory management, merchandising, and customer service for new and existing members. Support also includes shared resources, operational advice, purchasing assistance, and collective marketing initiatives such as Managed Marketing. The distribution network supports product delivery across broad geographic areas. It includes the facility in Milbank, South Dakota, which was added through the United Hardware merger. Individual member territory rights are not specifically defined as exclusive. The network’s presence across 49 states and more than 60 countries indicates broad market coverage rather than strict territorial divisions. Specific multi unit requirements are not outlined. Independent owners with one store or multiple stores can become members to support existing or new retail operations. The model may therefore appeal to experienced retailers who want additional purchasing and operational support without giving up their local identity.

By 1967, HWI had grown to over 600 members. By 1999, the cooperative included more than 4,200 member retailers across the United States and 38 foreign countries. In 2016, there were 3,067 franchised Do it Best locations in the USA, including 1,443 locations in the Midwest region across 49 states. In March 2024, United Hardware Distributing Co., a regional hardware cooperative, agreed to merge with Do it Best. United Hardware shareholders overwhelmingly approved the transaction on April 5, 2024. The merger added approximately 700 member stores, a distribution center in Milbank, South Dakota, and the Hardware Hank brand. It increased Do it Best membership by over 20%. In November 2024, Do it Best acquired True Value Company’s assets for $153 million. The transaction included inventory, brand rights, a paint manufacturing facility, and more than 4,500 True Value store locations. Together, these transactions helped bring the network to over 8,000 member locations worldwide as of 2024, with stores across the United States and in more than 60 other countries. The acquisition activity shows the scale of the cooperative’s collective operations and its ability to make large strategic investments. Buyers should distinguish those systemwide facts from any claim about the results of an individual store.

Do it Best Corp. was founded in 1945 with approximately 100 members, reached over 600 members by 1967, and had more than 4,200 member retailers in the United States and 38 foreign countries by 1999. Data from 2016 identified 3,067 franchised Do it Best locations in the USA, with 1,443 in the Midwest across 49 states. The 2024 merger with United Hardware Distributing Co., approved by United Hardware shareholders on April 5, added approximately 700 member stores, the Milbank, South Dakota distribution center, and the Hardware Hank brand, increasing membership by over 20%. The November 2024 purchase of True Value Company’s assets for $153 million added inventory, brand rights, a paint manufacturing facility, and more than 4,500 store locations. As of 2024, the resulting network included over 8,000 member locations worldwide across the United States and more than 60 other countries. International expansion began during Mike McClelland’s presidency after 1992, with particular attention to Central and South America and the Caribbean. Do it Best’s competitive position rests on collective purchasing power, shared resources, operational support, and brand recognition. Its ability to add Hardware Hank and True Value assets shows that the cooperative can integrate other brands, expand supply chain scale, and use more than one branding approach. Dan Starr has served as President and CEO since 2016. He succeeded Bob Taylor, who followed Mike McClelland, whose tenure ran from 1992 to 2016, Don Wolf, who served from 1967 to 1992, and founder Arnold Gerberding. The company’s recent mergers and acquisitions reflect an effort to expand its reach among independent hardware and building materials retailers.