Bottom line
- Total investment $134K – $278K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $3.0M/year (median $2.6M). Estimated payback in 0.6 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 106 loans (below the industry average).
- System growing at 29.7% CAGR over 3 years with 312 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Superior Fence & Rail unit return on the cash you put in?
Unlevered ROIC · per unit
153%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Superior Fence & Rail units return on equity?
Equity IRR · 5-yr
34.1%
4.34× MOIC
Year-1 DSCR
2.38×
EBITDA ÷ debt service
Equity required
$5.5M
on $15.1M purchase
Total debt
$9.5M
SBA $5.0M + senior + seller note
Overview
About
Superior Fence & Rail franchisees design, sell, and install residential and commercial fencing and railing systems. Day-to-day operations involve site assessments, customer quotes, material ordering, crew management, and installation project execution across their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 11 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Trademark litigation, missing financial disclosures, and compressed margins present meaningful risk despite moderate growth and protected territories.
Score breakdown · what drove the 44 / 100 rating
- 01HIGHActive trademark infringement litigation with similarly-named competitor (Superior Fence and Construction, Inc.) creates legal/branding liability and territorial disputes
- 02MEDNo Item 19 financial performance representations disclosed — claimed average revenue of $301k appears inconsistent with $3M system average; unable to verify individual unit economics
- 03HIGHModerate unit growth (9.9% YoY) is healthy but insufficient to offset litigation risk; 312 units is relatively small franchisor with limited brand protection
- 04MINORHigh initial investment ($134k-$278k) paired with 6% royalty on low revenue creates thin margin profile; breakeven timeline unclear without Item 19 data
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
31 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Superior Fence & Rail · FDD (2026) PDF