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 franchise costs at a glance
Total investment
$250,000–$1.5M
Source: Do It Best Franchise Disclosure Document (FDD) · as of 2026-07-21. Figures vary by market and site; verify against the current FDD before signing.
Key takeaways
Total estimated startup cost: $250K–$1.5M (co-op hardware retail)
Do it Best is a dealer-owned cooperative, not a traditional franchise — members own shares
Ongoing fees: co-op membership assessments (no gross sales royalty — a structural cost advantage)
Access to co-op wholesale pricing across hardware, tools, paint, and home improvement categories
SBA Franchise Directory listed — qualifies for SBA 7(a) financing
Over 3,800 locations in 50+ countries; member-owned since 1945
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.
2 Total startup investment (FDD via FTC 16 CFR Part 436)
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:
Co-op membership (share purchase): approximately $1,500–$5,000
Initial inventory purchase (scales with store size and format): $100K–$600K
Real estate — leasehold improvements and build-out: $50K–$350K
Fixtures, shelving, and store display systems: $30K–$150K
Point-of-sale technology and store systems: $10K–$30K
Signage and exterior branding: $10K–$40K
Pre-opening training (travel and expenses): $3K–$10K
Grand opening advertising and marketing: $5K–$20K
Insurance, licenses, and permits: $5K–$15K
Working capital reserve: $20K–$80K
3 Ongoing fees
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.
4 Financing options
Do it Best is listed on the SBA Franchise Directory, qualifying dealer-members for expedited SBA loan eligibility. Common financing paths include:
SBA 7(a) loan: The primary path — covers initial inventory, leasehold improvements, fixtures, equipment, and working capital in a single facility.
SBA 504 loan: For dealers purchasing real estate or a building materials facility, the SBA 504 program provides long-term fixed-rate financing for fixed assets.
Inventory line of credit: A revolving facility for ongoing inventory replenishment — particularly useful for the seasonal and project-based demand patterns in hardware and building materials retail.
Equipment financing: Forklifts, shelving systems, and POS equipment at larger building materials formats can be financed as standalone equipment loans.
5 ROI timeline
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.
6 Who's a good fit
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.
7 What lenders look for in a Do it Best franchise application
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 8. The wide investment range means underwriting requirements scale significantly between floor and ceiling:
DSCR with gross margin structure: Hardware retail DSCR is modeled on gross margin (typically 35–45% for co-op hardware) minus operating expenses. The building materials component — larger at Do it Best vs. Ace — improves revenue stability through contractor accounts with recurring project supply purchases. SBA SOP 50 10 8 requires 1.15× DSCR; lenders underwriting at $250K–$1.5M typically target 1.25×–1.35×.
Equity injection: SBA requires a minimum 10% non-borrowed equity injection. On a $250K–$1.5M Do it Best project, lenders typically require 20–25% — approximately $50K–$375K in documented liquid funds. Operators closer to the $1.5M ceiling must demonstrate substantial personal liquidity, not just total net worth.
Inventory financing structure: The large initial inventory ($100K–$600K) is often financed via a separate revolving inventory line of credit rather than included in the SBA 7(a) term loan — keeping the term loan focused on real estate and build-out. Lenders review the combined debt service on both the SBA loan and the inventory line when computing DSCR.
Co-op membership advantage: No gross sales royalty (vs. traditional franchise) improves DSCR projections compared to royalty-bearing hardware chains. Lenders recognize this structural cost advantage — Do it Best members pay co-op dues rather than a percentage of revenue.
Personal net worth composition: At higher investment levels ($750K–$1.5M), lenders review whether personal net worth consists of liquid assets (savings, securities) vs. illiquid real estate equity. Liquid net worth above 20% of the project cost is a stronger application at the upper end of the range.
Underwriting sources
Do it Best is listed on the SBA Franchise Directory, qualifying for expedited SBA loan eligibility review. — SBA Franchise Directory
SBA SOP 50 10 8 establishes creditworthiness criteria for SBA 7(a) loans — including DSCR projections, equity injection requirements, and collateral analysis for franchise and retail startups. — SBA SOP 50 10 8
SBA 7(a) loans finance franchise startup costs including leasehold improvements, build-out, fixtures, and working capital for co-op retail members on the SBA Franchise Directory. — SBA 7(a) Loan Program
8 Apply at ClearValue Lending
ClearValue Lending works with hardware retail and building materials operators on startup and inventory financing. Compare SBA, inventory-line, and equipment options on small business financing, then apply at Find my match. Your file routes to the funding partners best matched to your file.
Sources
Do it Best is listed on the SBA Franchise Directory, qualifying dealer-members for expedited SBA loan eligibility. — SBA Franchise Directory
SBA 7(a) loans finance co-op retail startup costs including inventory, leasehold improvements, equipment, and working capital up to $5M. — SBA 7(a) Loan Program
The Federal Reserve's Small Business Credit Survey shows SBA-backed loans and equipment/inventory financing are among the most commonly used credit products for independent and co-op-affiliated hardware and building materials retailers. — Federal Reserve Small Business Credit Survey
Frequently asked questions
How much does a Do it Best franchise cost in 2026?
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.
Is Do it Best a cooperative or a franchise?
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.
What is Do it Best's patronage dividend?
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.
What DSCR does a lender require for a Do it Best franchise?
SBA SOP 50 10 8 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.
How much equity injection is required for a Do it Best franchise?
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.
How does Do it Best compare to Ace Hardware?
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.
Summary:
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.
This article is for educational purposes and is not financial, legal, or tax advice. Rates,
fees, qualification requirements, and product availability are illustrative ranges that vary
by lender, market conditions, and individual business profile. ClearValue Lending is a
funding platform; all financing is subject to lender partner approval and terms. Always read
your contract end-to-end and verify specific numbers before signing.
