Entrepreneur: Start & Grow Your Business

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-House	Third Party
Franchise Fee	Yes	No
Startup Costs	No	No
Equipment	No	No
Inventory	No	No
Accounts Receivable	No	No
Payroll	No	No

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