Ace Handyman Services Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$89,250 - $153,470
Franchise Fee
$36,000
Min Cash Required
$15,000
Total US Locations
11
Business Summary
Ace Painting Franchising, LLC offers the opportunity to operate an Ace Hardware Painting Services Business. These businesses provide high-quality indoor and outdoor painting, staining, and other related services for both residential and commercial properties. The business model is simplified through technology, meaning prior experience or knowledge of the house painting trade is not required. Ace Hardware Painting Services Business franchisees are granted a license to use the brand's trademarks and proprietary system within a protected territory, typically ranging from 70,000 to 100,000 households. Franchisees can operate their business from a home office.
Corporate History
Ace Painting Franchising, LLC was formed on November 15, 2021, as a Delaware limited liability company and operates under the trade name ACE HARDWARE PAINTING SERVICES®. The company began offering franchised businesses similar to its current model in November 2022. The foundation of the Ace Hardware Painting Services System comes from Mountain Skyline Painting, LLC ('MSP'), a predecessor business in the Denver, Colorado market whose assets were acquired on December 31, 2021, by Ace Services Holdings LLC, Ace Painting Franchising, LLC's immediate parent company. Ace Hardware Corporation is the ultimate parent company.
Financial Overview
Investment Range
$89,250 - $153,470
Franchise Fee (Low)
$36,000
Franchise Fee (High)
$80,000
Minimum Cash Required
$15,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$2,700
Equipment Costs (High)
$9,300
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Ace Hardware Corporation, the ultimate parent company of Ace Painting Franchising, LLC, appears financially sound. Its independent auditors issued an unqualified opinion on its consolidated financial statements for the years ended December 28, 2024, December 30, 2023, and December 31, 2022. Management indicates that existing cash balances, along with credit facilities and long-term financing, are expected to be sufficient to cover working capital, debt service, capital expenditures, and growth initiatives for at least the next 12 months. The company's operating activities generated $548.1 million in cash in fiscal 2024. While there was a slight decrease in cash provided by operating activities before changes in assets and liabilities from 2023 to 2024, the overall financial condition seems stable with sufficient liquidity.
Financing Details
Ace Painting Franchising, LLC does not offer any direct or indirect financing to its franchisees, nor does it guarantee any franchisee notes, leases, or other obligations. Franchisees are responsible for securing their own funding for the business.
Performance Metrics
Total US Locations
11
Franchised Units
8
Corporate Units
3
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Ace Painting Franchising, LLC itself has no litigation required to be disclosed. However, its ultimate parent company, Ace Hardware Corporation, has been involved in three legal actions which have since concluded. In February 2020, a lawsuit in Texas involving Ace Handyman Services, Inc. against Ace Hardware Corporation and others, regarding trademark rights for 'ACE HANDYMAN SERVICES,' was settled in April 2020, with Ace Hardware paying $150,000. A civil action in California (Cathay Bank v. Ace Hardware Corporation, et al.) was filed in September 2017, alleging wrongful payments to a former vendor. This matter was settled in May 2022, with Ace Hardware paying $650,000 as part of a larger settlement. Lastly, a civil action in Florida (Advanced Caregivers, LLC d/b/a Hialeah Ace Hardware and William Bloodworth v. Ace Hardware Corporation) filed in January 2012 alleging fraud was dismissed in July 2017 following a settlement where Ace Hardware paid $25,000 to each plaintiff.
Bankruptcy History
Ace Painting Franchising, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Ace Painting Franchising, LLC franchisees must provide notice between 120 days and one year before their agreement expires. They must be in full compliance with their current Franchise Agreement, including being current on all payments. Franchisees are also required to meet the current standards for new franchisees, modify their business operations to conform with the latest Operations Manual, pay a successor franchise fee, and execute a Successor Franchise Rider, which will include a general release of claims against Ace Painting Franchising, LLC.
Training & Support Program
Franchisor Assistance
Ace Painting Franchising, LLC provides comprehensive assistance to its franchisees. Before opening, the franchisor helps designate the protected territory, grants access to business operations software, an Internet site for customers, an e-mail account, and an Intranet site for franchisees. They provide specifications for required equipment, inventory, and supplies, along with lists of approved suppliers. Pre-opening activities include a startup task list, assistance with completion, and assignment of a field support team member. Franchisees also gain access to a proprietary project management onboarding program and receive a confidential Operations Manual. A mandatory 40 to 55-hour initial training program is provided for up to four people without tuition. After opening, franchisees receive 35 to 41 hours of on-site training at their business location within the first 90 days. The franchisor continuously researches new products, services, and methods, sharing updates. Support is available via telephone, text, and e-mail during business hours for operational questions. Regular communications on best practices, mandatory annual conferences, and additional training programs (fees may apply) are also provided. Franchisees receive marketing programs, advertising designs, and campaigns, along with assistance in local market research and pricing recommendations. Access to business operations software, e-mail accounts, customer-facing websites, Intranet sites, social media accounts, and a list of approved third-party call center services are part of the ongoing support.
Initial Training Hours
55
Training Location
Corporate office in the Denver, Colorado metropolitan area, or via video conference
Ongoing Support
Ace Painting Franchising, LLC provides its franchisees with various ongoing support services. Within the first 90 days of operation, the franchisor conducts 35 to 41 hours of on-site training at the franchisee's business location. It continuously researches new products, services, and business methods, sharing this information with franchisees. Support is available via telephone, text, and e-mail during regular business hours for operational questions. The franchisor also provides regular communications on best practices through various electronic channels. Annual conferences are held to discuss sales, new products, advertising, and other relevant topics, which franchisees are required to attend. Additional training programs may also be conducted at the franchisor's discretion. Franchisees receive marketing programs, advertising designs, and campaigns, along with assistance with local market research and pricing recommendations. The franchisor provides access to its business operations software, an e-mail account, customer-facing Internet site, Intranet site for franchisees, and social media accounts. A list of approved third-party call center service companies is also provided.
Franchise Requirements
Ideal Candidate Profile
Ace Painting Franchising, LLC seeks franchisees who do not need prior experience or knowledge of the house painting trade, as the business is simplified through technology. However, franchisees or their designated Franchise Manager should possess sufficient business experience in financial, tax, and general business matters to effectively manage the Ace Hardware Painting Services Business. If the franchisor believes a franchisee lacks adequate business experience, they will be required to hire an approved Franchise Manager.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Ace Painting Franchising, LLC defines territories based on zip codes, including all commercial properties within them. Territories are sized by the number of households, with a minimum of 60,000 households generally granted, and typically ranging between 70,000 and 100,000 households. If a franchisee's desired territory exceeds 100,000 households, an additional franchise must be purchased.
Staffing Notes
Ace Painting Franchising, LLC franchisees are solely responsible for recruiting, hiring, firing, and supervising their employees, agents, and authorized representatives, including painting crews, customer service personnel, and a Franchise Manager. These personnel are considered employees or agents of the franchisee, not Ace Painting Franchising, LLC. Franchisees may use independent contractor painters. All employees must wear logoed clothing and maintain a professional appearance. Franchisees must conduct background checks on all personnel and ensure at least one representative maintains the required Lead Renovation, Repair, and Painting (LRRP) Certification at all times. The number and type of employees and contractors must be sufficient to meet the anticipated volume of business. Franchisees must also employ a third-party call center service to answer business phones during regular hours.