Do it Best startup costs run $250K–$1.5M. Like Ace Hardware, Do it Best is a dealer-owned cooperative — members own shares and purchase inventory at co-op pricing with no gross sales royalty. The second-largest hardware co-op in the US behind Ace.
Do it Best Corp. is the second-largest hardware retail cooperative in the United States, operating under a member-owned cooperative model since its founding in 1945 as Hardware Wholesalers, Inc. (the company rebranded to Do it Best in 1999). Like Ace Hardware, Do it Best is owned by its dealer-members, who collectively own shares of Do it Best Corp. and purchase inventory through the co-op at wholesale pricing. There is no gross sales royalty — members pay co-op dues and assessments rather than a percentage of revenue, providing a structural cost advantage vs. traditional franchise models. The $250K–$1.5M investment range reflects store size, initial inventory depth, and real estate costs.
Do it Best dealer-members operate independently owned hardware, home improvement, and building materials stores under the Do it Best brand. The co-op provides wholesale purchasing, national advertising, the Do it Best loyalty program, and store systems. Like Ace Hardware, Do it Best dealers have significant pricing and operational autonomy relative to traditional franchise models — they set their own retail prices and operate independently under Do it Best's brand standards. The system's 3,800+ locations span hardware stores, home improvement centers, and building materials dealers in the US and 50+ countries. The building materials and lumber category — a larger part of Do it Best's assortment vs. Ace Hardware — is a differentiator in rural and construction-supply markets.
Per Do it Best's current Franchise Disclosure Document (FDD), required under the FTC Franchise Rule (16 CFR Part 436), total estimated initial investment runs $250K–$1.5M. Key cost categories include:
Do it Best charges co-op membership dues and advertising/technology assessments as disclosed in the current FDD. As a member-owned cooperative, there is no ongoing royalty on gross sales — the primary ongoing cost to members is co-op assessments for national programs and the cost of inventory purchased through the co-op's wholesale buying program. Do it Best distributes co-op patronage dividends (rebates based on annual purchase volume) to member-dealers, further improving the effective economics of co-op membership vs. traditional franchise royalty models. Review FDD Items 5 and 6 for current assessment rates and patronage dividend terms.
Do it Best is listed on the SBA Franchise Directory, qualifying dealer-members for expedited SBA loan eligibility. Common financing paths include:
Do it Best dealer-members benefit from the co-op's wholesale pricing, patronage dividends, and the absence of a gross sales royalty — a combination that typically produces stronger operating margins than traditional franchise hardware retail models. Dealers who serve contractor and building materials customers alongside consumer hardware retail benefit from higher average transaction sizes and more predictable project-based purchasing patterns. Operators typically model 36–60 months to initial investment recovery at the $250K–$1.5M range. The building materials segment — lumber, roofing, siding, windows — can support significantly higher revenue per location than a pure hardware store format.
Do it Best is well suited for operators who want the wholesale pricing and brand support of a major hardware co-op with full operating independence and no gross sales royalty. The building materials and lumber dealer format is a particular fit for operators in rural and suburban markets with active residential and commercial construction demand. Retail management experience, contractor relationship development, and inventory management discipline are the most important operational skills for this model. The member-owned structure rewards long-term operators through patronage dividends that increase with annual purchase volume.
SBA lenders underwriting a Do it Best startup ($250K–$1.5M) evaluate the co-op hardware retail model against the five criteria established in SBA SOP 50 10 7. The wide investment range means underwriting requirements scale significantly between floor and ceiling:
ClearValue Lending works with hardware retail and building materials operators on startup and inventory financing. Apply at Find my match. Your file routes to one matched lender.
Per the current FDD, total estimated initial investment runs $250K–$1.5M. The largest cost driver is initial inventory — hardware and building materials stores require broad product depth. Store format (neighborhood hardware store vs. full building materials dealer) and size are the primary variables determining where in the range a specific project falls.
Do it Best is a dealer-owned cooperative — member-dealers own shares of Do it Best Corp. and collectively own the company. There is no gross sales royalty. Members pay co-op assessments for national programs and purchase inventory through the co-op's wholesale buying program. Do it Best files an FDD because it meets the FTC's definition of a franchise under 16 CFR Part 436, but the ownership structure is fundamentally a cooperative.
Do it Best distributes patronage dividends to member-dealers based on their annual purchase volume through the co-op — a rebate system that returns a portion of co-op profits to members in proportion to their purchases. This is a meaningful economic benefit that improves the effective cost of goods vs. the published wholesale price, and increases as annual purchase volume grows.
SBA SOP 50 10 7 requires a minimum 1.15× DSCR. For a $250K–$1.5M Do it Best project, lenders typically target 1.25×–1.35×. The no-royalty co-op model improves DSCR projections vs. royalty-bearing hardware franchises — lenders recognize the structural cost advantage. Building materials and lumber contractor accounts with recurring purchase cadences further strengthen DSCR stability.
SBA requires 10% minimum non-borrowed equity injection. For Do it Best ($250K–$1.5M), lenders typically require 20–25% — approximately $50K–$375K depending on project scale. At the upper end ($1.5M), personal liquid assets (not just total net worth) must cover 20%+ of project cost. Note that inventory financing ($100K–$600K) is often on a separate revolving line — include that debt service in your DSCR model.
Both are dealer-owned hardware cooperatives with similar investment ranges and no gross sales royalty. Do it Best has a stronger building materials and lumber dealer presence vs. Ace Hardware's primarily hardware-focused network. Ace Hardware has a larger US store count (5,800+ vs. 3,800+) and higher brand recognition in consumer hardware. Prospective operators should review the FDDs for both and evaluate which system's category assortment and market support better fits their target market.