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B59/100FDD 2026

Conserva Irrigation — Litigation & Risk

Home Services - Lawn & Landscaping · FDD Items 3, 4 & 5

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Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
59 / 100
FranchiseVerdict composite
Rating
MODERATE
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
43
Government-backed loans issued
Default rate
22.2%
vs <3% typical · system-wide
5-yr default rate
28.6%
Defaults
2 loans
Loans charged off or defaulted
Total loan volume
$7.2M
Avg loan size
$168K
Participating lenders
17

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
Virginia
State whose law governs disputes — relevant if you're not based there

What drove the 59/100 rating

Risk Score Breakdown

  1. 01MEDNo Item 19 financial performance representations disclosed — actual franchisee profitability cannot be independently verified
  2. 02MINORModest unit growth of 7.7% YoY suggests market saturation or challenges in recruitment/retention
  3. 03MINORHigh royalty ceiling (8%) combined with $1,000 monthly minimum creates revenue floor pressure during seasonal downturns
  4. 04MINORInitial investment ($125,800–$159,500) requires 9–12 months of revenue to break even at average net income levels

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.