In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Superior Fence & Rail franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Superior Fence & Rail franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Superior Fence & Rail outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Superior Fence & Rail franchise opportunity

Section V – Presentation and analysis of Superior Fence & Rail’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2021 average and median gross revenues for the 13 Superior Fence & Rail franchisees that were operational for all of the 2021 calendar year, and 2021 gross revenues for the two company-owned operations that operated in North Florida and Oviedo, Florida

• 2021 average and median gross revenues for the 10 new Superior Fence & Rail franchisees that were operational for at least three months but less than the full 12 months of the 2021 calendar year

• average and median gross revenues for the first full year of operations, second full year of operations, and third full year of operations for Superior Fence & Rail franchisees that conducted their first full calendar year of operations in 2019, 2020, or 2021

• 2021 average gross margin, cost of materials, and cost of labor for the 13 Superior Fence & Rail franchisees that were operational for all of the 2021 calendar year and reported to Superior Fence & Rail an annual profit and loss statement, and 2021 gross margin, cost of materials, and cost of labor for the two company-owned operations that operated in North Florida and Oviedo, Florida

• 2021 average sale, number of jobs, and leads for the 13 Superior Fence & Rail franchisees that were operational for all of the 2021 calendar year, and 2021 average sale, number of jobs, and leads for the two company-owned operations that operated in North Florida and Oviedo, Florida

• 2018, 2019, 2020, and 2021 system-wide gross revenues for the two company-owned operations that operated in North Florida and Oviedo, Florida, and all Superior Fence & Rail franchisees whose Superior Fence & Rail businesses were operational for any part, even as little as one month if the franchisee completed initial training in December of their initial year of operations

Section VI – Key ratios, comparables, computations, and analyses for the Superior Fence & Rail franchise opportunity (exclusive content for Platinum subscribers)

Section I – Superior Fence & Rail Franchise Costs

• Superior Fence & Rail franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $59,500
• Software License Fee:  $2,500
• Travel and Living Expenses While Training:  $2,000 to $3,000
• Tools and Equipment:  $10,000 to $35,000
• Computer Hardware and Software:  $800 to $2,000
• Inventory:  $15,000 to $25,000
• Trade Show Booth:  $2,500 to $2,500
• Rent and Security Deposit for Office and Storage Facility:  $4,000 to $12,000
• Furniture and Fixtures:  $1,200 to $7,800
• Vehicle:  $3,000 to $10,000
• Vehicle Signage and Outfitting:  $2,500 to $5,000
• Initial Marketing Expenses:  $10,000 to $15,000
• Additional Funds for 3 Months:  $20,000 to $30,000
• Total Estimated Superior Fence & Rail Franchise Costs:  $133,000 to $209,300

Section II – Superior Fence & Rail’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Superior Fence & Rail’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $59,500
• Monthly Branding Royalty:  $0 to $1,999,999: 6% of gross revenue; $2,000,000 to $3,999,999: 5% of gross revenue; $4,000,000 and above: 4% of gross revenue
• Individual Advertising Investment:  minimum $40,000 per calendar year for one territory; minimum $60,000 if you are granted two contiguous territories. A minimum of $20,000 for each additional contiguous territory.
• National Branding and Marketing Fee:  1% of gross revenue

Section III – Number of Franchised and Company-Owned Superior Fence & Rail Outlets

Franchised

2019

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  13
• Net Change:  +5

2020

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  16
• Net Change:  +3

2021

• Outlets at the Start of the Year:  16
• Outlets at the End of the Year:  29
• Net Change:  +13

Company-Owned

2019

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section IV – News Updates on the Superior Fence & Rail Franchise

• Outdoor Living Brands Continues to Strengthen Its Portfolio With the Addition of Superior Fence & Rail

• Superior Fence & Rail Expands Its Fence Franchise to Wilmington, NC

• Superior Fence & Rail Opens Location in Woodlands, Texas

• Fort Worth Fence Franchise, Superior Fence & Rail, Announces New TX Location

• New Cleveland Fence Franchise Set to Fill in the Gaps – First Superior Fence & Rail in Ohio

• Superior Fence & Rail Did Not Rank on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Superior Fence & Rail Franchise (Item 19, 2022 FDD)

• For purposes of this Item 19, the term “Gross Revenue” means the total of all receipts derived from all sales of products and services in connection with each franchisee’s Superior Fence & Rail business, including, without limitation, labor, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for its franchised business or by means of the business conducted under its Franchise Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property, or other means of exchange.

• Gross Revenues do not include: (i) the amount of any tax imposed by any federal, state, municipal, or other governmental authority; and (ii) all customer refunds, valid discounts and coupons, and credits made by the franchisee.

• The following tables below present financial information from 25 different franchise outlets that operated during the reporting periods ending December 31, 2021, 2020, 2019, and 2018. All franchise outlets operate under one Franchise Agreement with each franchise outlet’s territory ranging in total population size of between 4,578,471 and 567,494.

• Excluded from this entire Item 19 are 5 licensees that are not required to provide, nor does Superior Fence & Rail collect, the type of information reflected in this Item 19.

Part 1 – Gross Revenues for Superior Fence & Rail Businesses for the Full 12 Months Ending December 31, 2021

• The following table presents Gross Revenue information realized by certain Superior Fence & Rail franchisees during the period between January 1, 2021 and December 31, 2021 (“Reporting Period”).

• The information provided in the table below was compiled from 13 Superior Fence & Rail franchisees that were operational during the Reporting Period. The data excludes 13 franchisees that commenced operations during the Reporting Period. No franchisees ceased operations during the Reporting Period.

• Average Gross Revenues:  $2,953,195
• Number and Percentage Above Average:  5 (39%)
• Median Gross Revenues:  $2,129,128

• The information presented above also excludes the results of two company-owned operations that operated in North Florida and Oviedo, Florida and generated $12,044,414 and $6,265,507 of Gross Revenues during the Reporting Period respectively.

Part 2 – Gross Revenues for Superior Fence & Rail Businesses Operating for at Least 3 Month but Less Than 12 Months Ending December 31, 2021

• The information provided in the table below was compiled from 10 new Superior Fence & Rail franchisees that were operational for at least three months but less than the full 12 months of the Reporting Period.

• It excludes the data from the 13 franchisees that were operational for the entire Reporting Period presented in the tables above and franchisees that operated less than three months during the Reporting Period.

• Average Gross Revenues:  $950,116
• Number and Percentage Above Average:  5 (50%)
• Median Gross Revenues:  $898,794

Part 3 – Gross Revenues of Certain Superior Fence & Rail Businesses for the Full 12 Months Ending December 31, 2021, 2020, and 2019

• The following table presents information for Superior Fence & Rail franchisees that conducted their first full calendar year of operations in 2019, 2020, or 2021.

• As of December 31, 2021, there were 3 franchisees that opened in 2018 and conducted their first full calendar year of operations in 2019, there were 6 franchisees that opened in 2019 and conducted their first full calendar year of operations in 2020, and there were 4 franchisees that opened in 2020 and conducted their first full calendar year of operations in 2021.

• The below table excludes 13 franchisees that had not conducted a full year of operations as of December 31, 2021.

First Full Year of Operations

• Average Gross Revenues:  $1,780,902
• Number and Percentage Above Average:  5 (39%)
• Median Gross Revenues:  $1,362,265

Second Full Year of Operations

• Average Gross Revenues:  $2,798,799
• Number and Percentage Above Average:  3 (33%)
• Median Gross Revenues:  $1,888,901

Third Full Year of Operations

• Average Gross Revenues:  $3,894,351
• Number and Percentage Above Average:  1 (33%)
• Median Gross Revenues:  $3,892,969

• The Gross Revenue figures presented above represent the total dollar value of customer installation contracts sold during the respective calendar year by the Superior Fence franchisees identified above. The financial performance representations above do not reflect the costs of sales, royalties, or operating expenses that must be deducted from the Gross Revenue figures to obtain a net income or owner’s profit number.

Part 4 – Gross Profit Margin, Cost of Materials, and Cost of Labor as a Percentage of Revenue for Superior Fence & Rail Franchisees for the 12 Months Ending December 31, 2021

• The information provided below was compiled from 13 Superior Fence & Rail franchisees that were operational for all of the 2021 calendar year (the “Reporting Period”) and reported to Superior Fence & Rail an annual Profit and Loss statement (“P&L”). They are the same 13 Superior Fence & Rail franchisees included in Part 1 above.

• The data excludes 13 franchise territories that commenced operations during the Reporting Period.

• Gross Profit Margin measures profitability after material, installation labor, and other direct installation costs are subtracted from Gross Revenues.

• Cost of Materials includes all products utilized in the installation of a fence installation including, without limitation, posts, concrete, hardware fasteners and fence panel fabrications made of wood, vinyl, aluminum, steel or chain-link, and other accessories.

• Cost of Labor includes direct payroll and payroll taxes for employee fence installers. In addition, some franchisees hire subcontracted labor for fence installations and those costs are included in Cost of Labor. The Cost of Labor does not include benefits or unemployment insurance.

• Average Gross Margin:  34.5%
• Average Cost of Materials:  46.7%
• Average Cost of Labor:  18.8%

• The data above also excluded results from the two company-owned stores including North Florida that reported Gross Profit Margin, Material Costs, and Labor Costs of 37.8%, 46.0%, and 16.2% respectively. Oviedo, Florida reported Gross Profit Margin, Material Costs, and Labor Costs of 50.8%, 36.0%, and 13.2% respectively.

• The financial information utilized above was based entirely upon information reported by the 13 Superior Fence & Rail Reporting Franchisees who provided P&L data, and none of this information has been audited or otherwise reviewed or investigated by Superior Fence & Rail or by any independent accountant or auditing firm, and no one has audited, reviewed, or otherwise evaluated this information for accuracy or expressed his/her opinion with regard to its content or form.

Part 5 – Average Sale Per Project, Annual Number of Jobs, and Customer Leads During 12 Months Ending December 31, 2021

• The information provided below was compiled from 13 Superior Fence & Rail franchisees that were operational for all of the 2021 calendar year (the “Reporting Period”) and reported to Superior Fence & Rail an annual Profit and Loss statement (“P&L”) and Job and Lead data maintained in the proprietary customer relationship management (“CRM”) software used by Superior Fence & Rail franchisees to operate their franchise.

• They are the same 13 Superior Fence & Rail franchisees included in Part 1 above. The data excludes 13 franchise territories that commenced operations during the Reporting Period.

• “Average Sale” per project is calculated by diving the total Gross Revenue by the number of Jobs installed during the Reporting Period.

• A “Job” is a fence or rail installation project that was completed and generated Gross Revenue during the Reporting Period, and a “Lead” reflects any customer inquiry for a fence installation project. Leads can be recorded by phone calls, website or social media inquiries, or customer referrals.

• Average Sale:  $5,881.97
• Average Number of Jobs:  508
• Average Leads:  3,407

• The data above also excluded results from the two company-owned stores including North Florida that reported Average Sale, Jobs, and Leads of $6,154.53, 1,957, and 14,957 respectively. Oviedo, Florida reported Average Sale, Jobs, and Leads of $9,624.43, 651, and 10,106 respectively.

Part 6 – Superior Fence & Rail Franchise System Sales for Years Ending December 31, 2018, 2019, 2020, and 2021

• The information provided in the table below is based on the aggregate Gross Revenues (“System Sales”) reported to Superior Fence & Rail from all Superior Fence & Rail franchisees whose Superior Fence & Rail businesses were operational for any part, even as little as one month if the franchisee completed initial training in December of their initial year of operations, of each fiscal year ended December 31, 2018, December 31, 2019, December 31, 2020, and December 31, 2021.

• 2018 System Gross Revenues:  $16,528,506 (3 franchised, 2 company-owned)
• 2019 System Gross Revenues:  $21,471,345 (9 franchised, 2 company-owned)
• 2020 System Gross Revenues:  $31,546,603 (12 franchised, 2 company-owned)
• 2021 System Gross Revenues:  $66,376,104 (26 franchised, 2 company-owned)

Section VI – Superior Fence & Rail Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️