Ace Hardware began in 1924 as a retailer-owned cooperative in Chicago. The founding group consisted of independent hardware-store owners who joined together to improve their buying power and compete more effectively.
The cooperative was named after the World War I fighter pilot Eddie Rickenbacker’s “Ace” nickname. Unlike a centrally owned chain, a cooperative allows participating retailers to own and help govern the organization while operating their own local stores.
That structure remains important to Ace’s identity. Stores can combine local knowledge and independent ownership with shared purchasing, branding, distribution, and advertising. Many Ace locations are therefore community businesses connected to a broader national network.
Ace Hardware is often described simply as a franchise, but its cooperative ownership model is a more precise distinction. Some stores operate under arrangements that differ from a conventional franchise, even though customers encounter a consistent national brand.