Risk Score
Pending analysis
Investment Range
$161,444 - $297,444
Franchise Fee
$44,925
Total US Locations
167
Business Summary
TOP RAIL® operates a business that sells, furnishes, and installs various types of fencing, including wood, steel, aluminum, and vinyl, along with related garden products. The company also offers staining and painting services for residential and commercial customers. TOP RAIL® franchisees operate under the company's proprietary mark, offering these approved products and services within a designated territory.
Corporate History
HFB FenceCo Franchising, LLC, operating as TOP RAIL®, was formed in North Carolina on May 25, 2022. The company began offering TOP RAIL® franchises in October 2022. HFB FenceCo Franchising, LLC is slated to become a subsidiary of HFB Franchisor Holdings, LLC, which will be the parent company owning 100% of the franchisor after a consolidation transaction in May 2025. This parent company will itself be owned by HFB Enterprise Holdings, LLC. TOP RAIL® is part of a larger family of affiliated brands under the Homefront Brands umbrella, including The Designery, Window Hero®, Temporary Wall Systems®, and Roof ScientistSM.
Financial Overview
Investment Range
$161,444 - $297,444
Franchise Fee (Low)
$44,925
Franchise Fee (High)
$73,900
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$8,000
Equipment Costs (High)
$47,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for TOP RAIL® show that the company generated net losses during 2024. The FDD includes a special risk disclosure highlighting that the franchisor's financial condition, as reflected in its financial statements, calls into question its financial ability to provide services and support to franchisees. The company's members have historically provided additional funds to cover operating expenses and intend to continue this support if working capital is insufficient. Management believes that cash generated from franchise operations and continued financial support from its members will enable TOP RAIL® to operate profitably.
Financing Details
TOP RAIL® does not offer any direct or indirect financing to its franchisees. This means that franchisees must secure their own funding, and TOP RAIL® will not guarantee any notes, leases, or other financial obligations for them.
Performance Metrics
Total US Locations
167
Franchised Units
167
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
TOP RAIL® has no litigation to report. The FDD states that no litigation is required to be disclosed in Item 3.
Bankruptcy History
TOP RAIL® has no bankruptcy history to report. The FDD states that no bankruptcy is required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their TOP RAIL® franchise, franchisees must provide written notice of their intent to renew between 12 and 18 months before the current agreement expires. They must demonstrate the right to operate at an approved location for the renewal term or secure a new acceptable location. Franchisees must also update all required equipment, supplies, inventory, hardware, software, and vehicles, and complete any necessary maintenance or remodeling of the Approved Location to meet current brand standards at least 90 days prior to expiration. They must be in substantial compliance with all agreements, have satisfied all monetary obligations to TOP RAIL® and its affiliates, sign the then-current franchise agreement (which may have materially different terms and fees), meet current training requirements, obtain all necessary licenses and permits, and execute a general release. TOP RAIL® may also require resizing the territory into multiple separate franchise agreements and charges a $5,000 renewal fee per franchise agreement (with a reduced fee for additional agreements renewed simultaneously under a multi-unit addendum).
Training & Support Program
Franchisor Assistance
TOP RAIL® provides franchisees with various forms of assistance. Before opening, TOP RAIL® helps define the designated territory, offers site selection guidelines, provides initial training for required trainees, grants access to the Operations Manual, supplies initial inventory and a list of approved suppliers, offers general advice, approves the business opening, and provides a dedicated phone number. After opening, TOP RAIL® reviews advertising materials, manages the Brand Fund, provides additional consulting services upon request (with a fee for on-site visits), schedules additional or refresher training (required training is free, optional training has a fee), updates the System and Manuals, administers the Call Center and Business Management and Technology System, evaluates alternate suppliers (with a fee), reviews relocation requests (with a fee), and offers ongoing advice (with a fee for on-site assistance).
Initial Training Hours
48
Training Location
Our Home Office (Huntersville, NC), virtually, or other location we designate
Ongoing Support
After opening, TOP RAIL® franchisees receive ongoing support including review of their advertising or promotional programs, management of the Brand Fund, and additional consulting services upon request (in-person services may incur a fee). TOP RAIL® schedules and may require franchisees and their employees to attend additional or refresher training courses (required training is free, optional training may have a fee, and an annual conference has a fee). The franchisor also provides system updates, manages the Call Center and Business Management and Technology System, evaluates alternate suppliers (with a fee), reviews relocation requests (with a fee), and offers periodic advice and guidance on operations and use of the proprietary marks (on-site assistance may incur a fee). TOP RAIL® may also provide suggested retail pricing.
Franchise Requirements
Ideal Candidate Profile
Top Rail FenceCo is looking for qualified individuals or entities with a strong level of business acumen and financial strength. These individuals, or their principals, are expected to be hands-on owner-operators, dedicating their full-time attention, skill, and best efforts to the management and operation of the Top Rail business. They must actively promote and increase demand for Top Rail products and services within their designated territory. While owners may engage in other non-competing businesses with prior written permission, this must not materially interfere with the Top Rail operations. If a Designated Manager is employed, they must also devote their full-time attention to the business and not pursue other employment. The ideal candidate will be committed to operating the business in accordance with Top Rail's system and brand standards.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
3
Territory Size Requirements
TOP RAIL® typically defines a Designated Territory based on approximately 80,000 owner-occupied households, with the exact size depending on geography, demographics, and other factors. The specific boundaries may be described using zip codes, streets, landmarks, or county lines. The franchisor uses publicly available population information, such as data from the U.S. Census Bureau or commercial sources, to determine the population within a territory. Additionally, the Approved Location (office/warehouse) for a TOP RAIL® franchise must typically be between 1,000 and 1,500 square feet, complemented by an outside lay down yard of 5,000 to 10,000 square feet.
Staffing Notes
TOP RAIL® anticipates that franchisees will typically employ between 1 and 4 individuals, consisting of a salesperson and either subcontracted service labor or a hired crew of 2-3 people. The franchised business must always have at least one individual on staff who has successfully completed TOP RAIL®'s Initial Training Program. The franchisee, or their operating principal, along with any Designated Manager, is responsible for training all other employees according to TOP RAIL®'s standards. Any Designated Manager must be approved in writing by TOP RAIL® and successfully complete the Initial Training Program before assuming responsibilities. If a Designated Manager leaves, a replacement must be trained within 90 days, completing the training within 30 days of hiring. All employees, independent contractors, agents, or representatives with access to TOP RAIL®'s Confidential Information must sign a Confidentiality and Restrictive Covenant Agreement.