Most Americans may not realize that Ace Hardware is a cooperative, not a franchise.
That distinction isn’t just academic—it’s fundamental to how we compete, survive, and serve our communities across the country, from downtown Washington, D.C. to remote towns like Miles City, Montana.
When people think of retail today, they often imagine massive e-commerce platforms or big-box chains with centralized control and minimal local investment. But for thousands of independent business owners, being part of a cooperative like Ace means we can offer competitive pricing, top-tier products, and national brand recognition—while remaining deeply local in our impact and decision-making.
But let's break down how this works.
As a cooperative, Ace is collectively owned by its independent store members. This means that rather than paying royalties to a corporate franchisor every time we make a sale—as is the case with many fast-food or retail franchises—we actually receive a dividend based on what we purchase through the co-op. And that money goes right back into our businesses and communities.
Additionally, instead of each store owner having to manage hundreds or thousands of vendor relationships—paying thousands of bills, sourcing new inventory, and negotiating pricing individually—we get the power of a centralized system that streamlines those functions for us.
This is not just about convenience—it’s about survival.
Unlike franchised models, cooperatives like Ace also give members autonomy.
That means I choose which local vendors to support. I choose who manages my marketing, my janitorial services, my social media—keeping dollars in my community and shaping the character of my business.
Yet at the same time, I benefit from pooled advertising under a recognizable national brand. Customers walk through our doors because they know the Ace name; they stay because they see we are their neighbors.
Even during economic shocks—like the COVID-19 pandemic—this structure proved invaluable.
When supply chains were crumbling and many independent businesses struggled to get basic protective equipment, we had alternatives. We were able to source masks and gloves through the Ace distribution network and were even able to help another local co-op serving nonprofits and faith groups meet their needs when no one else could.
In small towns, the cooperative model is even more essential, places where hardware supplies aren’t just a convenience but a necessity. Ace’s infrastructure—which includes an expansive network of regional distribution centers running nearly 24/7—ensures even the most remote stores get the same access to goods, pricing, and logistical support as stores in major urban centers.
However, despite the impact cooperatives make—economically and socially—they remain misunderstood and underrecognized. In Europe, co-ops are widely embedded into economic and community development policy. But in the U.S., it's fair to say that most consumers (and policymakers) have no idea what a cooperative even is.
We need that to change.
I urge policymakers to think critically about how federal, state, and municipal purchasing can better support local cooperatives. I urge consumers to ask who profits when they make a purchase—and to consider shopping where dollars stay local.
And lastly, I urge our civic leaders to raise the visibility of this time-tested model that punches far above its weight.
I know first-hand the role co-ops play in keeping small businesses afloat amid market consolidation. Cooperatives are an essential counterweight to monopolies and centralized control. They build resilient supply chains, provide democratic ownership, and create local wealth—not extract it.
Cooperatives aren't just legacy institutions—they're the blueprint for a more resilient, more democratic, and more locally rooted American economy.
In a time of uncertainty and consolidation, we need to lift up and support them more than ever.
