Superior Fence & Rail Franchise Costs $131K - $207K (2024 Stats)

Superior Fence & Rail, recognized as America's leading fence contractor and the largest national fencing franchise, offers a unique business model that combines strong purchasing power, comprehensive training, and proprietary software for efficient client and sales management. Founded in 2001 and beginning its franchising journey in 2017, Superior Fence & Rail has established itself as a dominant force in the fencing industry without requiring franchisees to have prior fencing experience.

Headquartered in Oviedo, Florida, the company has expanded its operations across the United States, offering high-quality fences at competitive prices. The company's success is rooted in its proven sales process, which enables franchisees to differentiate themselves from competitors in their local markets.

This is supported by Superior Fence & Rail's robust training programs, operational support, and group buying power, ensuring franchise owners can maximize their profitability while scaling their operations effectively. 

For those interested in exploring a franchise opportunity with Superior Fence & Rail, the company provides in-depth support and training from various teams, including operations, accounting, marketing, and sales, along with ongoing one-on-one support to ensure the successful operation of their franchise​​​​​​.

Initial Franchise Fee

The initial franchise fee ranges from $15,000 to $25,000, depending on various factors including the size and location of the franchise territory. This fee is payable upon signing the franchise agreement and is generally non-refundable.

Royalty Fee

The royalty fee structure is tiered based on the franchisee's gross revenue, with rates of 6% for revenues up to $1,999,999, 5% for revenues between $2,000,000 and $3,999,999, and 4% for revenues $4,000,000 and above. These fees are due monthly.

Advertising Fee

Franchisees are required to contribute to a National Branding & Marketing Fee equal to 1% of Gross Revenues. This fee is intended for national advertising efforts and is payable monthly.

Technology Fee

The technology fee is $250 per month, which provides access to the franchisor's designated technology package. Additional licenses may incur extra costs, currently set at $125 per additional license.

Transfer Fee

A transfer fee of $10,000 is applicable when the franchise is sold to a new owner. This fee covers the administrative costs associated with the change of ownership.

Renewal Fee

The renewal fee for extending the franchise agreement is either $4,950 or 10% of the then-existing initial franchise fee, whichever is greater. This fee is due upon executing the successor franchise agreement.

Successor Franchise Fee

Upon renewing or extending the franchise agreement, franchisees must pay a Successor Franchise Fee, which is the greater of $4,950 or 10% of the then-existing initial franchise fee.

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The franchisor provides a comprehensive training program for franchisees, which includes the following aspects:

1. Initial Training Program: Within 90 days of the mutual execution of the agreement, the franchisor provides an initial training program either in Florida, at the franchisor’s facilities in Virginia, or another designated location. This training covers various aspects such as the system, techniques, procedures, installation, methods of operation, advertising, sales techniques, promotional ideas, marketing plans, customer relations, information technology systems, instructions on quality standards, administrative practices and procedures, safety practices, accounting practices, and practical experience in operating a Fencing Business​​​​.
2. Guidance, Coaching, and Assistance: After the franchisee opens the business, the franchisor provides guidance, coaching, and assistance, which includes making a representative available for discussions on operational issues, holding periodic conference calls, meetings or conferences to discuss various operational aspects, and providing access to advertising materials​​​​.
3. Mandatory Annual Conferences: The franchisee or their Designated Business Manager must attend mandatory annual conferences at locations designated by the franchisor, covering topics such as sales techniques, new product or service developments, field operations, and more. The franchisee is responsible for all related expenses​​​​.
4. Supplemental and Refresher Training: The franchisor may require the franchisee or their Designated Business Manager to attend all supplemental and refresher training programs designated by the franchisor, for which a reasonable fee may be charged​​.
5. Additional Training Requirements: If the franchisor deems necessary, additional training may be required for the franchisee, which must be completed at the franchisee’s expense. This might include training at a local computer training school, with the franchisee responsible for providing a certificate of completion​​.

The franchisor does offer territory protection with certain conditions and limitations. When you are granted a franchise, you are assigned a specific territory based on demographics, population density, home values, average income, and other characteristics. The territory is designated for up to 400,000 people, and if your territory exceeds this population limit, you may be required to pay an additional fee.

The franchisor reserves the right to modify your territory upon the execution of a Successor Franchise Agreement to align with their current standards for protected territories, which could involve changing the size of your territory based on population changes or other factors​​​​.

However, there are specific rights reserved by the franchisor that might impact the exclusivity of your territory. For instance, the franchisor retains the right to sell or service customers in unsold territories adjacent to yours and may require you to cease operations in such territories if they are granted to another franchisee.

The franchise agreement for Superior Fence & Rail emphasizes active participation in the operation of the franchise business. Specifically, it mandates that you must directly supervise the Fencing Business at your franchised location, with this supervision being conducted by a Designated Business Manager, who could be one of your employees.

This requirement is established to ensure that the franchise operations align with the franchisor's standards and practices. The Designated Business Manager, who doesn't need to own a beneficial interest in the business entity, must be approved by the franchisor before signing the Franchise Agreement.

Additionally, this manager is required to attend and successfully complete the initial training program and abide by the obligations in the Franchise Agreement and the Operating Manual​​.