Superior Fence and Rail Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$133,500 - $275,300
Franchise Fee
$30,000
Total US Locations
285
Business Summary
Superior Fence & Rail operates businesses that sell, furnish, and install various types of fencing, including wood, steel, aluminum, and vinyl, along with related garden products for both residential and commercial customers. The business provides a complete fencing solution to its clients.
Corporate History
Superior Fence & Rail Franchisor, LLC was formed in Delaware on December 3, 2021. The SUPERIOR FENCE & RAIL system itself originated in January 2017 with its predecessor, Superior Fence & Rail Franchising, LLC. The current franchisor acquired the franchise assets related to the system in December 2021. Superior Fence & Rail is a wholly-owned subsidiary of Outdoor Living Brands Holdco, LLC, which is part of a larger family of brands under Empower Brands, owned by Lynx-JP Holdings, BCAT, and majority-owned by MidOcean.
Financial Overview
Investment Range
$133,500 - $275,300
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$89,500
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$28,700
Equipment Costs (High)
$96,800
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Superior Fence & Rail are consolidated under its parent company, Outdoor Living Brands Holdco LLC (OLB Holdco), which has absolutely and unconditionally guaranteed Superior Fence & Rail's obligations. The independent auditors have issued an unqualified opinion on OLB Holdco's consolidated financial statements for the fiscal years ending September 30, 2022, 2023, and 2024, indicating that the financial statements present fairly, in all material respects, the financial position and cash flows in accordance with GAAP. The auditors highlight a change in accounting policy regarding the allocation of parent company income taxes, which has been retrospectively applied, but this does not alter the unqualified opinion. No specific financial health concerns, such as 'going concern' issues or significant liquidity problems, are raised regarding OLB Holdco or Superior Fence & Rail beyond general business risks.
Financing Details
Superior Fence & Rail may offer financing for up to 80% of the initial franchise fee to qualifying existing franchisees under limited and special circumstances. This financing option can extend for up to 24 months, with an annual interest rate set at 4 percentage points above the prime interest rate on the agreement's effective date. Repayments are made in equal monthly installments, and there are no prepayment penalties. Superior Fence & Rail does not intend to sell, assign, or discount these promissory notes to third parties and may require a spouse's signature on the note. Beyond this specific franchise fee financing, Superior Fence & Rail does not offer direct or indirect financing, guarantee loans, or receive payments for third-party financing placement.
Performance Metrics
Total US Locations
285
Franchised Units
283
Corporate Units
2
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Superior Fence & Rail has no litigation required to be disclosed in this FDD, indicating no history of lawsuits or legal disputes that meet reporting requirements.
Bankruptcy History
Superior Fence & Rail has no bankruptcy history to report for itself or its key executives.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their Superior Fence & Rail franchise, franchisees must be current on all payments and generally comply with all obligations. Specific conditions include signing the then-current successor franchise agreement (which may have different terms like higher royalties), not having committed two or more breaches in the 24 months before expiration, meeting minimum annual sales quotas every year, providing advance written notice between two and six months prior to expiration, signing a general release of claims against the franchisor, paying a successor franchise fee (the greater of $4,950 or 10% of the then-current initial franchise fee), meeting current qualifications for new and renewing franchisees, upgrading the computer system and vehicle to current standards, and providing proof of current licenses, insurance, and permits. The franchisor also reserves the right to modify the territory size upon renewal to align with current standards.
Training & Support Program
Franchisor Assistance
Superior Fence & Rail provides comprehensive assistance to its franchisees. Before opening, the franchisor offers guidance on territory designation, provides specifications for equipment, tools, vehicles, inventory, and supplies, and loans an Operations Manual. Initial training is provided to the franchisee or a Designated Business Manager, along with one additional person, in Florida, Virginia, or another designated location. The franchisor also supplies an initial art graphics package for branding materials and may offer on-site assistance during the initial months of operation. Ongoing support includes informing franchisees of mandatory operating standards and procedures, making representatives available by phone, researching and sharing information on new products and services, maintaining the National Branding & Marketing Fund for promotional programs, and providing advertising materials. Superior Fence & Rail may also conduct periodic optional conference calls and meetings, as well as mandatory annual conferences, for which franchisees are responsible for attendance fees and expenses. Supplemental and refresher training programs may also be required.
Initial Training Hours
120
Training Location
Florida, Virginia, or another designated location
Ongoing Support
After opening, Superior Fence & Rail franchisees receive ongoing support that includes mandatory adherence to specifications, standards, and operating procedures, as well as access to a representative by telephone during normal business hours for operational discussions. The franchisor continuously researches new products, services, and methods, sharing development information with franchisees. Superior Fence & Rail maintains a National Branding & Marketing Fund to develop and administer promotional and advertising programs for all fencing businesses in the system and provides franchisees with advertising materials in a graphics package. Additionally, the franchisor may offer further assistance at its discretion. Franchisees may attend periodic optional conference calls, meetings, or conferences, and are required to attend mandatory annual conferences, covering various topics like sales techniques, product developments, and marketing strategies, with franchisees covering associated fees and travel expenses. The franchisor may also require franchisees or their Designated Business Managers to attend supplemental and refresher training programs, for which fees may be charged.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
Superior Fence & Rail territories are defined geographically and by population, with each territory designed for up to 400,000 people. If a territory exceeds 400,000 individuals, franchisees must pay an additional fee of $0.15 per person above that limit, with a maximum single territory population anticipated to be 599,999 individuals. The franchisor uses the most recent U.S. Census Data or other chosen population statistical sources to determine these populations and reserves the right to modify or delete these population limits or other demographic factors used in defining territories. Franchisees maintain their territory rights even if the population changes, and the franchisor has the exclusive right to determine territory boundaries.
Staffing Notes
Superior Fence & Rail franchisees are solely responsible for locating, interviewing, hiring, scheduling, supervising, compensating, and disciplining all employees of their business. They must also implement a training program for their employees and maintain a staff of trained employees sufficient to operate the business in compliance with Superior Fence & Rail's mandatory standards. The business requires direct, on-site supervision by a Designated Business Manager, who could be the franchisee or an employee. This manager must attend and successfully complete the initial training program provided by Superior Fence & Rail. If Superior Fence & Rail determines a franchisee lacks sufficient business experience, a Designated Business Manager must be designated and approved.