Superior Fence & Rail franchise unit economics

Revenue by band

How much does a Superior Fence & Rail franchise make?

Figures as filed. The 93 franchisees ran 285 territories. The data excludes 14 franchisees with 36 territories that began operating during the period, 11 territories that ceased operating, 5 licensees, and the two company-owned outlets.

The 93 franchisees averaged $3,011,403 of Gross Revenue in the 12 months to September 30, 2025, at a median of $2,598,212. Forty-two of them, 45%, were above the average. Revenue ranged from $421,294 to $10,009,175.

Revenue is reported per franchisee, not per territory. Sixty-six of the 93 franchisees operate more than one territory and report one combined figure. The 93 franchisees ran 285 territories, which is $982,668 of revenue per territory across the group*.

Single-territory franchisees averaged more per business than multi-territory franchisees. The 27 single-territory franchisees averaged $3,092,846 and the 66 multi-territory franchisees $2,978,085, across an average of 3.9 territories each*. That is $761,836 per territory for the multi-territory group*. Multi-territory figures include any territories added during the year.

Revenue built up over the first three full years. Item 19 Part B reports an average of $1,855,741 in the first full year (101 franchisees, median $1,654,651), $2,664,825 in the second (90, median $2,331,715) and $3,448,568 in the third (44, median $3,249,617). The averages rose 43.6% from year one to year two and 29.4% from year two to year three*. Each year covers a different number of franchisees.

The two company-owned outlets are reported separately. North Florida had $13,081,216 of Gross Revenue in the period and Oviedo, Florida had $6,929,542. Neither is in the franchisee figures.

The Part B figures measure sales, not receipts. The FDD states that the first, second and third year amounts are the total dollar value of customer installation contracts sold in each fiscal year.

Costs, 2024

Revenue and listed costs, franchisees open two years, 2024

Figures as filed, from a voluntary 2024 benchmarking study. Median revenue for the 44 was $2,996,725, with a high of $8,789,522 and a low of $609,150. Royalties and the brand fund are what each franchisee would have paid under this FDD.

The 44 franchisees open at least two years averaged $3,497,555 of revenue in calendar 2024 and $353,232 after the listed costs, 10.1%. The FDD states that this figure is not their profit, because each franchisee had other costs. Owner pay, installer benefits, vehicle depreciation, interest and tax are not in the table.

Materials were the largest cost at $1,259,190, 36.0% of revenue. Materials include posts, concrete, fasteners and panels in wood, vinyl, aluminum, steel or chain-link. That is 1.9 times installation labor*.

Installation labor, sales commissions and office and warehouse wages came to $1,136,419, 32.5% of revenue*. Installation labor of $666,061 includes subcontracted crews and excludes benefits. Sales commissions were $176,325, 5.0% of revenue.

The royalty of $194,878 equals the Item 6 rates applied to the $3,497,555 average. That is 6% of the first $2,000,000 and 5% of the remaining $1,497,555*, an effective rate of 5.57%*. The median royalty was $169,836.

Advertising and marketing averaged $126,819, 3.6% of revenue. The 44 franchisees held 2.2 territories each on average*, so most had an advertising minimum above the $40,000 one-territory figure.

Costs by third

Cost ratios by third, 2024

Third averages as filed. The FDD labels the third with the highest margin, or the lowest cost ratio, as the top third. The spread column is the gap between the top and bottom thirds, an Averan calculation*.

The thirds are ranked separately for each measure. A franchisee in the top third for materials can be in the bottom third for labor, so the rows do not describe the same businesses. The 76 franchisees include 52 that operate more than one territory.

Gross profit margin averaged 50.5% in the top third and 33.6% in the bottom third. Individual margins ranged from 25.4% to 57.7%. Gross profit here is revenue less materials, installation labor, vehicle expenses and other costs of revenue.

Materials ran 28.8% of revenue in the top third and 39.8% in the bottom third. The 11.0-point spread* is larger than the 10.1% of revenue that the 44 two-year franchisees had left after listed costs.

Installation labor ran 14.4% of revenue in the top third and 25.1% in the bottom third. The lowest figure in the top third was 0.4%. The FDD states that installation labor includes subcontracted crews.

Rent and utilities reached 20.7% of revenue at the highest, and advertising 17.2%. The bottom-third averages were 6.8% for rent and utilities and 6.7% for advertising.

Jobs and leads varied widely across the 93 franchisees in the year to September 2025. Average sale ranged from $4,644 to $11,868 (average $7,767, median $7,771). Jobs ranged from 43 to 1,345 (average 404) and leads from 710 to 5,224 (average 2,165). The two averages give 18.7% jobs per lead*; the FDD does not print a close rate.

Brand charges

Brand charges

Rates as filed. The dollar column applies them to the 93-franchisee average and uses the one-territory advertising minimum, although most franchisees in that group run several territories. Bookkeeping must be done by an approved vendor for the first two years; its cost depends on the vendor and is not included.

The royalty rate falls as calendar year-to-date revenue rises. It is 6% to $1,999,999, 5% to $3,999,999 and 4% above that. At the $3,011,403 average, the royalty is $170,570*, an effective 5.66%*. Franchisees with contiguous territories in one market may combine their revenue to set the rate.

From the 24-month anniversary of opening, the royalty is at least $1,000 a month. That is $12,000 a year*.

The Individual Advertising Investment is a minimum spend, not a fee paid to the franchisor. It is $40,000 a calendar year for one territory, $60,000 for two contiguous territories and $20,000 more for each further contiguous territory. In the first year it is prorated from the opening date.

Item 12 sets a Minimum Annual Sales Quota for each territory. It is $500,000 in the third calendar year, $750,000 in the fourth and $1,000,000 from the fifth. If a franchisee misses it, the franchisor may grant more franchises in the territory, reduce the territory or terminate.

Other charges apply in some cases. A national accounts fee of 3% to 6% of the revenue from national account customers, a $10,000 transfer fee, and a successor franchise fee of $4,950 or 10% of the then-current initial fee, whichever is greater.

Cost to open

Cost to open

Figures as filed. Vehicle and tools are the amounts paid before opening and in the first three months, assuming they are leased or financed.

One territory costs $134,400 to $278,800 to open. The $59,500 initial franchise fee covers a territory of up to 400,000 people. Above that, the fee rises by $0.15 a person, up to $30,000 more for a territory of 599,999 people.

Additional territories bought at the same time cost less. The second contiguous territory is $40,000, the third $35,000 and each one after that $30,000, so two territories cost $99,500 in fees and three $134,500.

The FDD estimates 45 to 180 days from signing to opening. The business must open within 180 days. It needs at least 500 square feet of office space and 1,000 square feet of indoor storage, plus space for fence inventory.

The estimate excludes owner pay and taxes. The $10,000 to $50,000 of additional funds covers three months of operating costs, including royalties and payroll, not counting any revenue.

Locations

Locations, 2023 to 2025

Figures as filed. Each outlet is a territory. Two company-owned outlets in Florida operated throughout. Fourteen signed agreements had not opened at September 30, 2025.

Franchised territories rose from 74 at the start of fiscal 2023 to 309 at September 30, 2025. Over the three years 255 opened* and 20 were terminated*. No territories were non-renewed, reacquired or ceased for other reasons.

Ten of the 11 terminations in 2025 were in Texas. Texas opened 11 territories in the same year and ended it with 26.

With the two company-owned outlets, the system had 311 outlets at September 30, 2025. Item 19 Part E lists 114 franchisees and 310 outlets or territories at the 2025 fiscal year end. System gross revenues were $310,212,387 in fiscal 2025, of which $290,201,629 came from franchisees.

Questions we get asked

Questions owners ask