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American Leak Detection

2014 Franchise 500
#123
At a Glance

Products & Services: Concealed water, gas and sewer leak-detection

Number of Locations: 392

Total Investment: $76.8K - $259.6K

Founded: 1974

Began Franchising: 1984

About American Leak Detection

When American Leak Detection was founded in 1974, the business was detecting leaks in pools, spas, and slabs in Southern California. Since then, American Leak Detection has expanded beyond Southern California, operating across the U.S. and around the world. In addition to detecting pool, spa, and slab leaks, American Leak Detection franchisees perform sewer and utility line locating; oil, gas, and natural gas leak detection; crack injection; and other related services.

Franchise Units

Year U.S. Canadian International Company Owned
2014 342 8 15 27
2013 354 8 15 15
2012 316 6 24 15
2011 328 6 25 4
2010 308 6 29 4
Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Midwest, Northeast, South.
Franchisor is seeking new units in Asia, Australia/New Zealand, Canada, Central America, Eastern Europe, Mexico, South America, Western Europe.
Direct Capital

Startup Costs, Ongoing Fees and Financing

Total Investment: $76,755 - $259,550
Franchise Fee: $29,500 - $120,000
Ongoing Royalty Fee: 6-10%
Term of Franchise Agreement: 10 years, renewable
Veteran Incentives: $5,000 off franchise fee
Financial Requirements
Net Worth: $200,000
Liquid Cash Available: $70,000
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).
Direct Capital
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

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: Internet, PR, social media

Franchise Ranking History

Franchise 500®: #123 (2014), #119 (2013), #98 (2012), #104 (2011), #127 (2010),
Fastest-Growing: #81 (2014), #97 (2012),
Top Home-Based: #26 (2014), #23 (2013), #21 (2012), #27 (2011), #34 (2010),
America's Top Global: #124 (2013), #81 (2012), #88 (2011), #101 (2010),