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Entrepreneur: Start & Grow Your Business

American Leak Detection

Concealed water, gas & sewer leak-detection services

Background

Founded: 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, California 92262
Phone:
(800)755-6697/ (760)320-9991

Franchisee Association
American Leak Detection Advisory Council (ALDAC)

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

Franchise Growth
Year U.S. Franchises Canadian Franchises Foreign Franchises Company Owned
2009 304 6 28 4
2008 299 7 28 11
2007 297 8 29 8
2006 298 8 37 6
2005 243 8 70 6

Where Seeking Franchisees
In the U.S. Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North carolina, North dakota, New hampshire, New jersey, New mexico, Nevada, New york, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode island, South carolina, South dakota, Tennessee, Texas, Utah, Virginia, Vermont, Washington, Wisconsin, West virginia, Wyoming
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 and Fees

Total investment: $83.3K-233.5K
Franchise fee: $29.5K-80K
Ongoing royalty fee: 6-10%
Term of agreement: 10 years, renewable


Type of Financing Available
In-House Third Party
Franchise Fee No Yes
Startup Costs No Yes
Equipment No Yes
Inventory No No
Accounts Receivable No No
Payroll No No

Qualifications
Net worth requirement: $200K
Cash liquidity requirement: $70K
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 and 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

Franchise 500® rank:
#171 (2009); #181 (2008); #115 (2007); #192 (2006); #149 (2005);

Ranked #1 in category in:
2009; 2008; 2007; 2006; 2005;

Fastest-Growing Franchises:
#72 (2007);

Top Home Based Franchises:
#41 (2009); #39 (2008); #32 (2007); #52 (2006); #31 (2005);

America's Top Global Franchises:
#133 (2009); #170 (2008); #102 (2007); #138 (2006); #163 (2005);