Hardware Hank
United Hardware Distributing Co.
Company Information
Unknown
United Hardware Distributing Co. is a Minnesota corporation that was incorporated on May 15, 1945. The principal offices of United are located at 5005 Nathan Lane N, Plymouth, Minnesota 55442. United has been engaged in its present business since its incorporation in 1945. It has granted memberships of the type provided under the Membership Agreement since 1954.
United sells hardware and related products to customers, the majority of whom/which are retail hardware, home center or lumber dealers who own stock in United (“Members”). By entering into the Membership Agreement (attached as Exhibit “C”) with United, you will become a “Member” and will be granted the right to operate your business under the Hardware Hank®, Trustworthy® Hardware or Golden Rule® Lumber Center trade names. Memberships are granted to and may be held by individuals, partnerships, corporations, limited liability companies and limited liability partnerships. As of November 30, 2017, there were 522 active Members of United who/which operated 633 retail hardware stores, home centers or lumber yards. There were also 20 inactive Members who/which no longer operated a retail store and 126 associate members, the majority of whom/which are expected to become Members of United. Of the 522 active Members of United at November 30, 2017, 385 utilized the Hardware Hank® trade name in the operation of their businesses, 74 utilized the Trustworthy® Hardware trade name and 7 utilized the Golden Rule® Lumber Center trade name. The remaining 56 Members did not utilize a trade name offered by United.
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Franchise Rating
Franchimp Summary Rating
9/10
Earning Transparency
7/10
Investment Accessibility
10/10
Summary of potential earnings
$365,415 / unit
Average Gross Profit During 2019Retail Stores
$957,194 / unit
Average Revenue During 2019Retail Stores
Franchise System Development
| Year | Units at Start of Year | Units Opened | Units Terminated | Non-Renewals | Re-Acquired by Franchisor | Ceased Operations | Units at End of Year |
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Distribution of Hardware Hank Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $500 Maximum: $3,450
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $251,015 Maximum: $997,965
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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