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Superior Fence & Rail, Inc. Franchise ProfileHome Based Franchises > Home Repair Services |
What are the Initial Investment Requirements for a Superior Fence & Rail Franchise?
To start a Superior Fence & Rail franchise, you will need to consider an initial investment ranging from $130,500 to $206,800. This includes a franchise fee of $59,500. Additionally, you should have cash available between $20,000 and $30,000 and a net worth between $500,000 and $1,000,000. These figures are essential to ensure you can cover startup costs and sustain your business in the early stages.
What are the Financial Performance Metrics for Superior Fence & Rail?
On average, a Superior Fence & Rail unit generates annual revenue of approximately $4,152,839, with a median revenue of $3,757,709. The lowest revenue reported is $378,902, while the highest can reach up to $9,262,491. With a breakeven time of just 12 months and an investment payback period of 19 months, this franchise offers a potentially lucrative opportunity for investors.
What are the Ongoing Fees and Royalties for Franchisees?
Franchisees of Superior Fence & Rail are subject to ongoing fees that include a royalty fee of 6% of gross sales and a marketing fee of 1%. These fees contribute to the overall operational support and brand marketing efforts, helping franchisees maintain a competitive edge in the market. Understanding these costs is crucial for effective financial planning.
How has Superior Fence & Rail Expanded in Recent Years?
Superior Fence & Rail has seen significant growth in its franchised units, expanding from 16 units in 2021 to 74 units in 2023. This growth reflects the brand's increasing popularity and market presence. With a stable number of corporate units remaining at two, the franchise's focus on franchising indicates a strong commitment to expanding its network and supporting franchisees in various locations.
Superior Fence & Rail, Inc. Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Superior Fence & Rail, Inc. Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 18 | 31 | 76 |
| Net Change YoY | 13 | 45 | |
| Franchised Units | 16 | 29 | 74 |
| Net Change YoY | 13 | 45 | |
| Corporate Units | 2 | 2 | 2 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Superior Fence & Rail, Inc. franchise offers a low initial investment range of $130,500 to $206,800. With an initial franchise fee of $59,500, franchisees can expect a cash requirement of $20,000 to $30,000 and a net worth requirement between $500,000 and $1,000,000. This structure makes it accessible for aspiring entrepreneurs looking to enter the fencing industry.
Revenue Potential
Franchisees of Superior Fence & Rail can anticipate impressive annual revenues, with an average of $4,152,839 per unit. The median revenue stands at $3,757,709, while the highest reported revenue reaches $9,262,491. This potential for strong financial performance positions the franchise as a lucrative investment opportunity.
Operational Performance
The franchise has shown a consistent growth trajectory, with 16 franchised units in 2021, increasing to 29 in 2022, and a remarkable 74 units projected for 2023. This growth demonstrates the brand's expanding market presence and appeal, making it an attractive option for investors seeking scalability.
Financial Metrics
Superior Fence & Rail boasts a gross profit margin of 41.1%, with average annual operating expenses totaling $1,238,109. The EBITDA stands at $468,604, which represents 11.3% of revenue. These metrics indicate a healthy financial structure that supports franchisee profitability.
Breakeven and ROI
Franchisees can expect to break even within 12 months of operation, with an investment payback period of approximately 19 months. This quick return on investment enhances the franchise's attractiveness for those looking to recoup their initial costs swiftly.
Brand Support
Superior Fence & Rail provides robust support to its franchisees, including training, marketing assistance, and operational guidance. This commitment to franchisee success ensures that new owners are well-equipped to navigate the challenges of running a fencing business while maximizing their growth potential.
Frequently Asked Questions
The initial investment for a Superior Fence & Rail franchise ranges from $130,500 to $206,800, depending on various factors such as location and setup costs.