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A28/100FDD 2026

Superior Fence & Rail — Litigation & Risk

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Moderate — Review

2 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
2
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
28 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
55
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
0.0%
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$13.9M
Avg loan size
$253K
Participating lenders
20

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Florida
State whose law governs disputes — relevant if you're not based there

What drove the 28/100 rating

Risk Score Breakdown

  1. 01HIGHActive trademark infringement litigation with similarly-named competitor (Superior Fence and Construction, Inc.) creates legal/branding liability and territorial disputes
  2. 02MEDNo Item 19 financial performance representations disclosed — claimed average revenue of $301k appears inconsistent with $3M system average; unable to verify individual unit economics
  3. 03HIGHModerate unit growth (9.9% YoY) is healthy but insufficient to offset litigation risk; 312 units is relatively small franchisor with limited brand protection
  4. 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 FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.