Hardware Hank Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

577
+
-4%
-4%
Investment required

?

$307,000 - $2,177,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

n.a.
Royalty fees

?

n.a.
+
$60 - $200 per month
Operating Profit

?

n.a.

Pro
Franchisees

?

577
+
-4%
-4%
Investment required

?

$307,000 - $2,177,000
Franchise fee

?

n.a.
Royalty fees

?

n.a.
+
$60 - $200 per month
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Hardware Hank: Empowering Independent Retailers in the Heartland

Founded in 1945 in Plymouth, Minnesota, Hardware Hank is a well-established hardware retail franchise that operates under the umbrella of United Hardware Distributing Company.

Headquartered in Maple Grove, Minnesota, United Hardware evolved into a dealer-owned cooperative in 1957, allowing independent hardware store owners to benefit from shared resources while retaining operational independence.

The Hardware Hank franchise began offering membership agreements in 1954. These agreements allow retailers to purchase inventory through United Hardware on a cost-plus basis and receive year-end rebates.

Hardware Hank stores offer a wide range of products, including hand and power tools, electrical and plumbing supplies, home improvement materials, and lawn and garden equipment. Their diverse inventory caters to homeowners, DIYers, and professional contractors alike.

What sets Hardware Hank apart is its cooperative model, which supports independently owned and operated stores with centralized purchasing power, marketing programs, and access to more than 55,000 products.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Membership Fee $3,450
Equipment, Fixtures, Signage and Leasehold Improvements $80,000 - $250,000
Initial Merchandise Inventory $152,000 - $1,520,000
Purchase of Class A Shares $3,040 - $30,400
Security Deposits, Business Licenses and Other Prepaid Expenses $6,300 - $25,200
Computer and Point-of-Sale Systems $11,000 - $90,000
Insurance (First 3 Months) $1,000 - $7,500
Additional Funds - Working Capital for First 3 Months of Operation $50,000 - $250,000
Total (Excluding Real Estate Expenses) $306,790 - $2,176,550

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

577

+
-4%
-4%
No growth
New

n.a.

$307,000

-

$2,177,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Retail

Training

Hardware Hank provides essential training and support to ensure franchisees are equipped to run their stores effectively. Here are the core training offerings by the franchisor:

  1. Onboarding Training Program
    Franchisees are not mandated to attend a specific training program; however, they are expected to maintain the confidentiality of proprietary materials provided by United Hardware. This training support generally includes familiarization with business operations and access to resources like catalogs and printed materials.
  2. Voluntary Training and Support
    While not compulsory, United provides ongoing access to assistance and guidance in areas such as store setup, operations, and merchandising. Franchisees can leverage this support at their discretion to enhance their business performance.
  3. Trademark Licensing Training Guidance
    Franchisees granted licenses to use trademarks like Hardware Hank® receive specific guidance regarding branding and product placement. This ensures consistency across stores using United’s private label merchandise.

Territory Protection

Hardware Hank does not offer exclusive territory protection to its franchisees. The membership is granted for a specific location, but United reserves the right to operate or grant additional memberships for stores that may compete with your location.

This includes the ability to sell products under United's trademarks or through other channels such as the Internet, catalog, or direct marketing. Additionally, United may supply hardware and merchandise to non-members, including competing retailers like Trustworthy Hardware and Golden Rule Lumber Centers.

These provisions mean that franchisees may face direct competition from other United-affiliated or independent businesses, even within their immediate area. The franchisor retains broad rights to distribute products and authorize stores without territorial limitations.

Number of units

2023
Franchised units

604

609

577

Company-owned units

0

0

0

Total units

604

609

577

Competitors

Woodcraft

Investment required
$574,000
-
$753,000
Franchisees
58
+
-9%
-9%

Snap-on Tools

Investment required
$222,000
-
$500,000
Franchisees
3201
+
-2%
-2%

PowerWashStore

Investment required
$115,000
-
$250,000
Franchisees
8
+
33%
33%

Metal Supermarkets

Investment required
$351,000
-
$613,000
Franchisees
92
+
14%
14%

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