American Leak Detection

Water, gas and sewer leak detection
Year began: 1974    Franchising since: 1984
When Richard and Lorrie Rennick founded American Leak Detection in Palm Springs, California, in 1974, they limited business to detecting pool, spa and slab leaks in the Southern California area. Since that time, the company has expanded beyond its desert roots—American Leak Detection now operates locations across the United States and around the world. Today, in addition to the pool, spa and slab work, American Leak Detection franchisees perform sewer- and utility-line locating; oil, gas and natural gas leak detection; crack injection; and various other related services.
888 Research Dr., #100
Palm Springs, CA 92262

Phone: (800)755-6697/(760)320-9991
Fax: (760)320-1288

Franchisor has 34 employee(s); 1 employee(s) in franchise department.

Franchisee Association
American Leak Detection Advisory Council (ALDAC)
Contact: Steven West, President, (614)761-7755 Columbus, OH

Franchise Growth
Year

2008
2007
2006
2005
2004
U.S. Franchises
297
297
298
243
243
Canadian Franchises
8
8
8
8
8

Foreign Franchises
29
29
37
70
67
Company
Owned

13
8
6
6
6

Where Seeking Franchisees
Nationwide

Worldwide

Exclusive territories available.
Territory size: 350,000 population, 5,000 in-ground swimming pools

Special Programs
American Leak Detection supports Guide Dogs of the Desert, a program in Palm Springs that provides training to guide dogs and their human companions.

Costs & Fees
Total investment: $73.3K-157.1K
Franchise fee: $22.5K
Ongoing royalty fee: 6-10%
Term of agreement: 10 years, renewable
Type of Financing Available
In-HouseThird Party
Franchise FeeYesNo
Startup CostsNoNo
EquipmentNoNo
InventoryNoNo
Accounts ReceivableNoNo
PayrollNoNo
Qualifications
Net worth requirement: $200K
Cash liquidity requirement: $65K
Business Experience:
  • General business experience
  • Marketing skills

Operations
  • Franchise can be run from home
  • 7% of all franchisees own more than one unit
  • Number of employees needed to run franchised unit: 2 - 3
  • Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

Training & Support
TRAINING
  • Available at headquarters: 6-12 weeks
  • At franchisee's location: 1 week
  • Annual convention: 4 days

ONGOING SUPPORT
  • Newsletter
  • Meetings
  • Toll-free phone line
  • Internet
  • Security/safety procedures
  • Field operations/evaluations

MARKETING SUPPORT
  • Ad slicks
  • Regional advertising
  • Other marketing support: Regional advertising matching funds program

Rankings in Entrepreneur magazine 2004-2008
Franchise 500® rank:
#181 (2008); #115 (2007); #192 (2006); #149 (2005); #131 (2004);

Ranked #1 in category in:
2008; 2007; 2006; 2005; 2004;

Fastest-Growing Franchises:
#72 (2007);

Top home based franchises:
#39 (2008); #32 (2007); #52 (2006); #31 (2005); #28 (2004);

America's Top Global Franchises:
#170 (2008); #102 (2007); #138 (2006); #163 (2005); #88 (2004);

Last Updated: 3/26/2008 12:00:00 AM



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