About Superior Fence & Rail Franchise
Superior Fence & Rail is a home services franchise specializing in the design, sale, and installation of residential and commercial fencing and railing systems.
The brand has been franchising since 2017 under Outdoor Living Brands Holdco, LLC, and offers a full range of fence types including vinyl, aluminum, wood, and chain link.
Each franchise territory serves homeowners, businesses, and contractors looking for professional fence installation.
Superior Fence & Rail Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Revenue (tiered) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues (National Branding & Marketing Fee) | National brand fund |
| Total Investment Range | $123,000 – $199,300 | Includes build-out, inventory, working capital |
The investment range of $123K–$199K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Revenue (tiered)) and marketing fee (1% of Gross Revenues (National Branding & Marketing Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (2) | $49,500 | $49,500 |
| Software License Fee | $2,500 | $2,500 |
| Travel and living expenses while training (3) | $2,000 | $3,000 |
| Tools and equipment (4) | $10,000 | $35,000 |
| Computer hardware and software (5) | $800 | $2,000 |
| Inventory (6) | $15,000 | $25,000 |
| Trade show booth | $2,500 | $2,500 |
| Rent and Security Deposit for Office and Storage Facility (7) | $4,000 | $12,000 |
| Furniture and Fixtures | $1,200 | $7,800 |
| Vehicle (8) | $3,000 | $10,000 |
| Vehicle signage and Outfitting (9) | $2,500 | $5,000 |
| Initial marketing expenses (10) | $10,000 | $15,000 |
| Additional Funds - 3 months (11) | $20,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | Greater of $4,950 or 10% of the then existing Initial Franchise Fee |
| Technology Fee | $250 per month, plus $125 per additional software license |
| Audit Fee | Cost of audit plus late fee of 1 1/2% interest per month on understatement |
| Fee for Lost Manuals | $500 |
| Successor Franchise Fee | $4,950 or 10% of the then existing initial franchise fee, whichever is greater |
| Insurance | At a minimum, comprehensive general liability coverage and products liability |
| Indemnification | Will vary under circumstances |
| Cost of Enforcement or Defense | All costs including accounting and attorneys' fees |
| Interest | Lesser of 1 1/2% per month or highest rate of interest allowed by law |
| Late Report Fee | $100 per violation |
| Technology Maintenance Expense | $0-$5,000 |
| Seminars, Conventions or Programs | $500-$2,500 plus materials estimated at $50 |
| Fees to Evaluate an Alternative Supplier | Currently, we do not charge any fees to evaluate an alternative supplier |
| Fees for Special Assistance | Amounts we or another Superior Fence & Rail franchisee incurs to assist you in completing a job that you are unable or unwilling to complete |
| National Accounts Program | Currently between 3% to 6% of Gross Revenue generated from the National Accounts Program |
| Supplemental or Refresher Training | Then-current fee |
| State License Fee | Currently $150 per month |
| Early Termination Fee | An amount equal to 24 times the average monthly Royalty fees payable to Franchisor over (i) the last 12 months of the Franchised Business’s active operations, or (ii) the entire period the Franchised Business has been open for business, whichever is the shorter period |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 120 hours |
| Classroom Training | 60 |
| On-the-Job Training | 60 |
| Training Location | Florida, Virginia, or another location we designate |
| Additional Training | The franchisor may provide continuing national, regional, or local conference calls, meetings, or conferences, which franchisees must pay for (conference fee, travel, lodging, meals, personal expenses). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected, but not exclusive |
| Exclusive Territory | No |
| Territory Size | Up to 400,000 people |
| Description | The territory is a designated geographical area based on demographics including population density, home values, average income, natural boundaries, extent of competition, and urban/suburban/rural areas. While the franchisor grants a license for up to 400,000 people and will not establish another Fencing Business using the Marks within the territory, it explicitly states that franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years |
| Renewal Term | 7 years (or no less than 5 years) |
| Renewal Fee | Greater of $4,950 or 10% of the then existing Initial Franchise Fee |
| Renewal Conditions | To renew, the franchisee must sign the then-current successor franchise agreement (which may have materially different terms), be current in all payments, not have committed 2 breaches in the 24 months before term end, sign a release, pay the renewal fee, meet qualifications for new/renewing franchisees, provide notice, upgrade computer system and vehicle, and provide proof of current licenses, insurance, and permits. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Transfer requires franchisor approval, full compliance by franchisee, payment of all outstanding debts, execution of the then-current franchise agreement by the transferee, payment of a $10,000 transfer fee, execution of a general release by franchisee, transferee purchasing all assets and assuming liabilities, transferee meeting franchisor's financial and experience standards, and payment of all transfer costs. |
| Termination for Cause | The franchisor can terminate for various reasons, including intentional disclosure of confidential information, voluntary abandonment of the business for 5 consecutive days (or shorter period indicating intent to discontinue), insolvency or bankruptcy, material unsatisfied judgments, conviction of a felony or crime of moral turpitude, failure to pay amounts due within 10 days of notice, misuse of Marks, 3 notices of default within 12 months, unauthorized transfer, understating Gross Revenue by >3% on 2+ occasions, failure to submit reports on time, selling unauthorized products, contesting Marks' validity, corporate actions without consent, failure to complete training, or 4+ notices of default. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement and for 2 years after termination or expiration, the franchisee (and owners/managers) may not have a direct or indirect interest in a competitive fencing business (1) in the Territory or any other franchisee’s territory; (2) within 10 miles of the Territory or any other franchisee’s territory; or (3) within 10 miles of any franchisor or affiliate-owned Fencing Business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee must directly supervise the Fencing Business at its franchised location. This supervision can be performed by a Designated Business Manager, who could be an employee and is not required to own a beneficial interest in the business entity. The franchisor must approve the Designated Business Manager. |
| Required Suppliers | Currently, the franchisor is the only approved supplier for its designated software (Fencing 360). Approved suppliers and specifications for other Required Items are set forth in the Operations Manual. |
| Supply Restrictions | Franchisees must provide specified services and use and sell specified products, including SUPERIOR FENCE & RAIL, INC.® branded products and equipment, per franchisor specifications. The franchisor reserves the right to require additional or different services/products with 30 days' notice and to designate itself or affiliates as the sole or one of several designated suppliers for any Required Items. |
| Franchisor Revenue from Suppliers | $385,164 (1.9% of total $20,609,381 revenue from purchases of required products and services by franchisees) |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer optional financing for up to 50% of the Initial Franchise Fee for up to 36 months. The effective annual interest rate will be 3.0 percentage points above the prime interest rate on the effective date of the Franchise Agreement. There is no prepayment penalty, and the rule of 78 does not apply. No security interest is required, and only the franchisee and individuals required to sign the Guaranty and Assumption of Franchisee’s Obligations must sign the Promissory Note. |
Superior Fence & Rail Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Superior Fence & Rail Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Superior Fence & Rail System Growth
Superior Fence & Rail currently operates 29 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 5 | 0 | 13 |
| 2020 | 4 | 1 | 16 |
| 2021 | 13 | 0 | 29 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 10 states: CA, IL, IN, MD, MI, MN, NY, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Smith+Howard for year ending September 30.
Superior Fence & Rail Franchise — FAQ
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