Conserva Irrigation

Can you provide a detailed breakdown of the 14 unit closures in 2025 and explain what contributed to this significant increase from the 6 closures in both 2023 and 2024?

Of the 12 terminations in 2025, how many were franchisor-initiated versus franchisee-initiated, and what were the primary reasons cited?

The transfer rate of 10.0% significantly exceeds the typical range of 0-5.55% for landscaping franchises. What percentage of transfers involve ownership changes within existing franchisees versus complete unit ownership transfers?

Can you explain the rationale behind the $490 monthly technology fee, which exceeds the typical range by approximately $30-$368? What specific technology and services does this fee cover?

Given the below-typical bottom quartile sales of $207,180, what support does the franchisor provide to underperforming units, and at what sales threshold does a unit typically struggle to remain profitable?

Why is the initial franchise term only 7 years compared to the typical 10-year term for landscaping franchises, and does this shorter term impact franchisees' ability to recoup their investment?

The renewal conditions total 14, significantly exceeding the typical 6-8 range. Can you itemize these conditions and explain which ones are most difficult for franchisees to satisfy?

The non-compete radius of 10 miles is substantially narrower than the typical 25-50 miles. How does this narrower restriction affect franchisees' competitive positioning and the franchisor's ability to protect existing territories?

Can you provide the total cost of ownership over a 12-year period, including all initial and ongoing fees, to help assess long-term financial viability?

The data shows 21 transfers in 2025. Are transfers primarily driven by franchisees voluntarily exiting versus franchisor-encouraged transfers due to performance issues?

What was the basis for establishing 14 renewal conditions, and how frequently do franchisees fail to meet renewal requirements?

Can you clarify what the 3 'ceased other' units in 2024 and 2 in 2025 represent, and whether franchisees have any recourse or buyback options in these situations?

Given the escalating exit activity in 2025, has the franchisor implemented any new unit retention or support programs, and if so, what impact have they had?

The personal guarantee requirement applies to all 5%+ owners and their spouses. Can you explain how the franchisor enforces this guarantee in the event of franchisee default, and what percentage of franchisee defaults involve personal guarantee enforcement?

Can you provide examples of the 30-day cure period for operational defaults? How strictly is this enforced, and have units been terminated for operational issues that seemed resolvable?

The renewal fee is $4,950. Is this fee negotiable, and what happens if a franchisee cannot afford the renewal fee at the end of the initial 7-year term?

Of the units added since 2022 (system grew from 168 to 210, a net addition of 42 units), how many are still operating, and what were the closure/exit reasons for any that have since exited?

Can you provide contact information for at least 10-15 franchisees across different performance tiers (top, middle, bottom quartiles) to discuss their actual experiences with the transfer process, renewal terms, and technology fee value?

Given the zero litigation history, are there any informal disputes or complaints filed with state franchise regulators, and if so, what were the primary complaint categories?

What is the historical trend for the technology fee—has it increased annually, and are there any planned increases franchisees should be aware of when projecting long-term costs?