Franchise Evaluator™: Conserva Irrigation

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

According to Fortune Business Insights, the global sprinkler irrigation market size was worth $2.57 billion in 2019 and is expected to reach $2.91 billion by 2027. The market is mostly served by a patchwork of independent contractors, lawn & landscape service providers, and other home service businesses.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

About 1.5 billion of water is wasted every day due to irrigation system runoff. Increased encouragement – and in some cases via regulations – from state and local governments to switch to or improve sprinkler irrigation systems for businesses and homeowners as a means to conserve water is expected to grow the industry further. In addition to commercial and residential sectors, the agricultural industry has shown an increased interest in conserving water due to the significant amount of water required to grow crops.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Conserva Irrigation offers a variety of services, including free sprinkler system inspection, sprinkler repair and installation, irrigation repair and installation, drip irrigation systems, and summarization and winterization services. CLIA-certified Conserva technicians perform an audit to help clients identify problem areas. The brand offers two packages: Nice ‘N Easy (winterization, summerization, and 10% off all upgrades) and Full Season (summerization, winterization, one to two mid-season inspections, and 10% off all upgrades.)

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Conserva is an innovator and has established itself as the first franchise in the irrigation industry. Competitors in the industry are generally “mom-and-pop” businesses that don’t benefit as much from national recognition and established systems and may not even have irrigation as a core service. This irregular patchwork of irrigation service providers makes the Conserva Irrigation opportunity attractive in any market they enter.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Irrigation laws and regulations, as well as certification and licensing, vary depending on the state. Franchise owners should be aware of their state’s specific regulations and laws before opening up for business.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

Conserva is backed by the resources and management depth of Empower Brands (formerly Outdoor Living Brands and Lynx Franchising), an exterior home services, multi-branded franchisor of franchises including Bumble Roofing, Canopy Lawn Care, Outdoor Lighting Perspectives, and Archadeck Outdoor Living. Conserva’s franchise operations business coaches have a combined 100+ years of industry experience and have earned ASLA Backflow and other industry certifications.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

Russ Jundt is the founder and vice president of Conserva Irrigation. As brand leader, he drives the overall priorities and focus of the company. He has a B.A. in Business Management from Saint John’s University. Scott Zide, CEO and president of Empower Brands is a passionate entrepreneur with over 15 years of franchising experience.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Conserva’s new franchise training approach includes a Quick Start Program, a 5-day Virtual and 5-day Classroom, and In-the-field Training. The Quick Start Program assists new franchisees in launching their businesses. With approximately 200 specific tasks, the program is initiated immediately after signing a Franchise Agreement and before attending classroom and field training. Conserva uses the software tool, Teamwork to coordinate and sequence these launch tasks to ensure that new operators have taken care of all of the details in order to have their business fully operational after the training is over. Regular meetings with the assigned Quick Start Coordinator allow for progress to be made each week.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

Financial performance data from Conserva’s latest FDD shows that the brand’s financial health is robust. Of the 13 franchisees with gross revenues greater than $1 million, all of them operated in more than one territory. There were 11 franchise owners with gross revenue between $500,000 and $1 million, and nine (82%) operated in more than one territory. Nineteen of the 21 franchisees with gross revenues between $250,000 and $500,000 are multi-unit franchisees. Nine of the 14 franchisees with revenue less than $250,000 operated multiple territories. The top franchisee reached $3.4 million in total revenue, with average revenue reaching $759,687 and average gross profits totaling $415,503. *From the 2023 Conserva Irrigation FDD. Always consult your financial and legal counsel before making any investment decisions. The information presented here does not constitute endorsement or validation, nor an offer to buy a franchise. For information purposes only.

We categorize the Financial Health as Sound.