American Leak Detection Franchise FDD, Profits & Costs (2025)
American Leak Detection is a well-established franchise recognized for its expertise in accurately locating and repairing hidden leaks in water, gas, sewer, pool, and spa systems—without causing unnecessary property damage.
Founded in 1974 by Richard “Dick” Rennick in Palm Springs, California, the company continues to operate from its original headquarters. The brand transformed the leak detection industry by pioneering the use of advanced electronic technology to identify leaks efficiently and non-invasively.
Since it began franchising in 1984, American Leak Detection has grown steadily and now serves more than 140 territories across the United States, Canada, and Australia.
A major factor behind the company’s success is its guiding principle of “Leak Detection Without Destruction™.” Through cutting-edge tools, decades of technical know-how, and a trusted reputation for dependable service, American Leak Detection continues to lead the market in precision leak detection.
Initial Investment
How much does it cost to start a American Leak Detection franchise? It costs on average between $77,000 – $260,000 to start a American Leak Detection franchised center.
This includes expenses for specialized leak detection equipment, service vehicles, training, and initial operating costs. The total investment varies based on several factors, such as the size of the service territory, local market conditions, and whether the franchisee purchases or leases the necessary equipment and facilities.
| Type of Expenditure | Amount |
|---|---|
| Initial Fee | $29,500 – $120,000 |
| Equipment and Products Package | $25,500 – $52,000 |
| Training Package | $3,000 – $6,000 |
| Business Licenses | $0 – $250 |
| Telephone Security Deposit | $30 – $250 |
| Personal Working Hand Tools | $200 – $2,000 |
| Work Vehicle | $0 – $35,000 |
| Desk, Computer Hardware, Incidental Office Supplies | $100 – $5,000 |
| Shipping | $100 – $750 |
| Insurance | $750 – $3,000 |
| Sales Taxes, City, County, State | $0 – $2,500 |
| Business Management Accounting Software | $75 – $300 |
| Additional Funds to Commence Operations | $17,500 – $32,500 |
| Total | $76,755 – $259,550 |
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Frequently Asked Questions
How many American Leak Detection locations are there?
As of the latest available data, American Leak Detection operates approximately 175 locations in total.
What is the total investment required to open a American Leak Detection franchise?
The total investment required to open a American Leak Detection franchise ranges from $77,000 to $260,000.
What are the ongoing fees for a American Leak Detection franchise?
American Leak Detection franchisees pay an ongoing royalty fee of 6% of gross revenues. In addition, they contribute up to 2% of gross revenues to a marketing and advertising fund that supports national and regional promotional activities, brand development, and other marketing initiatives designed to generate leads and strengthen brand awareness.
Who owns American Leak Detection?
The franchise is owned by American Leak Detection Inc. which serves as the franchisor.
Disclaimer
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