Do it Best Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$564,500 - $1,342,500
Franchise Fee
$2,500
Total US Locations
3,919
Business Summary
Do it Best Corp. operates as a member-owned cooperative and wholesale distributor of hardware, lumber, and building materials primarily to its member-retailers, who are typically independent hardware, home center, or lumber and building material businesses. Members gain limited rights to use the 'Do it Best' trademark, purchase merchandise through the company, receive annual patronage refunds on their purchases, and participate in advertising campaigns. Do it Best Corp. also provides various optional services such as planning, training, catalog price service, and inventory control programs to help its members compete. Additionally, Do it Best Corp. sells products directly to consumers through its e-commerce subsidiary.
Corporate History
Do it Best Corp. was incorporated in Indiana on July 13, 1945, and began active business operations on December 26, 1945. The company has been granting memberships of this type for over 79 years. In May 2024, a wholly-owned subsidiary of Do it Best Corp. merged with United Hardware Distributing Co., resulting in all former United Hardware members becoming part of Do it Best Corp., though some continue to operate under United's trade names like Hardware Hank®. Do it Best Corp. introduced the LDP Program in 2001 for members who purchase specific minimums, which established an additional membership tier. The Enhanced Rebate program, established in 2000, provides proportionally larger patronage refunds to members who meet certain annual purchase volumes and other requirements. Do it Best Corp. also launched VISION PRICING as an optional program for Enhanced Rebate eligible members, offering lower upfront prices with correspondingly reduced patronage refunds, in contrast to their traditional CLASSIC PRICING.
Financial Overview
Investment Range
$564,500 - $1,342,500
Franchise Fee (Low)
$2,500
Franchise Fee (High)
$8,500
Equipment Costs (Low)
$116,000
Equipment Costs (High)
$314,000
Working Capital
$120,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Do it Best Corp. appears to be in sound financial health, as indicated by its audited consolidated financial statements. The independent auditors issued an unqualified opinion, meaning the financial statements are presented fairly in all material respects. The company recently changed its accounting policy for shareholder refunds, now recording them as an equity transaction rather than a deduction from income, to align with cooperative industry practices. This change increased reported net income and affected cash flow classifications but did not alter the reported financial position for 2023 and 2022. No material issues regarding commitments, contingencies, or its ability to continue as a going concern were identified by management.
Financing Details
Do it Best Corp. provides financing programs to its members to help them purchase merchandise and services. This includes offering certain merchandise for future delivery with payment due after delivery, along with an optional prepayment discount. Additionally, Do it Best Corp., either directly or through its affiliate Do it Best Financial, LLC, offers limited financing for store conversions and other purposes. The company may also provide financing to a member if it believes such assistance is necessary to retain the member or address competitive challenges.
Performance Metrics
Total US Locations
3,919
Franchised Units
3,919
Corporate Units
0
Avg Square Footage
11,000
Franchising Since
1945
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Do it Best Corp. has various pending legal actions, including general claims related to product liability, intellectual property, employment matters, and possible third-party contract breaches. The company states that the aggregate of any uninsured claims and indemnifiable claims are not believed to be material. Do it Best Corp. has not been involved in any material civil actions specifically concerning its franchise relationship in the last fiscal year. However, Do it Best Corp. initiated four lawsuits in its previous fiscal year to collect payments from members or guarantors who failed to pay for goods or services. These specific collection suits are against Florence Hardware, Inc. d/b/a Florence Hardware and Steven Swann; Gatzies, LLC, d/b/a Gatzies and David Ingemni; Local Lumber & Supply, LLC, Jody Gooslin, II, Murphy Poindexter and Christopher Beckett; and Supermarkets General Holding Company d/b/a Shopfresh Marketplace, Muhammid Nassra.
Bankruptcy History
Do it Best Corp. has no bankruptcy history to report in this section.
Agreement Terms
Renewal Conditions
The Do it Best Corp. membership relationship is indefinite, meaning there are no traditional renewal conditions or extensions of the term. The relationship continues unless it is terminated by a Do it Best Corp. member or by the Company due to a breach of the Membership Agreement or the Company's By-Laws. If a Do it Best Corp. member fails to comply with the conditions set forth in the Agreement or the obligations in the By-Laws, Do it Best Corp. services to that member may be terminated.
Training & Support Program
Franchisor Assistance
Do it Best Corp. provides a scheduled, optional four-day 'CORE®' training program for new members, typically conducted at the company's office in Fort Wayne, Indiana. This program covers merchandising, technology, marketing, and member services. The company employs approximately 100 field personnel who travel to member locations to offer advice on store arrangement, marketing techniques, business equipment, and new merchandise. Do it Best Corp. also makes advertising services available at established prices and offers various optional management, sales, and merchandise training schools, with costs partially covered by the company and supplemented by attendee fees. As part of membership or monthly service charges, members receive an up-to-date catalog, newsletters, and access to the CORE® training program. While Do it Best Corp. may assist new businesses in selecting a site, their approval does not guarantee success, and they do not generally select locations for most members who are already operating retail businesses.
Initial Training Hours
21
Training Location
Fort Wayne, Indiana
Ongoing Support
Do it Best Corp. provides continuous support to its members through a team of approximately 100 field personnel who visit locations to offer advice on floor arrangement, marketing strategies, business equipment, and new merchandise. The company also makes various advertising services available at established prices for members. Other ongoing member services include an up-to-date catalog price service, computerized inventory control programs, price relating services, accounts receivable management, and employee training programs.
Franchise Requirements
Ideal Candidate Profile
Do it Best Corp. primarily seeks independent retailers who are already operating in the hardware, home center, lumber, and building material business. These individuals or entities are expected to have conducted their own independent investigation into the business relationship and recognize that the nature of the business and market are subject to change over time, and that their investment involves business risks. Do it Best Corp. does not explicitly detail specific personal traits or work styles, but requires members to represent that they have not received or relied upon any guarantee of sales, revenues, profits, or success. To be eligible for the optional Enhanced Rebate program, Do it Best Corp. members must not be affiliated with another national stocking purchasing cooperative.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Do it Best Corp. members will not receive an exclusive territory. The Do it Best Corp. membership is granted for a specific location, and any relocation of that business or the establishment of additional locations under the Membership Agreement is subject to Do it Best Corp.'s approval. Do it Best Corp. members do not have options, rights of first refusal, or similar rights to acquire additional Membership Agreements. The document does not specify territory size requirements based on radius, population, zip codes, or other geographic boundaries.
Staffing Notes
Do it Best Corp. members are not required to personally participate in the actual operation of their business, but they must ensure the business is operated under the conditions outlined in the Membership Agreement. Do it Best Corp. members are solely responsible for all supervision, management, direction, discipline, payment, hiring, termination, and training of their own employees, in compliance with all local, state, and federal laws, including those related to anti-harassment, anti-retaliation, anti-discrimination, and workplace safety training. Do it Best Corp. acknowledges that it has no control over the terms or conditions of employment for a member's employees. The FDD does not provide specific details on required job roles, staffing levels for different shifts, or specific qualifications for a member's staff.