Rank no. 119 – American Leak Detection – US

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

Number of Locations: 381

Total Investment: $76.75K – 259.54K

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
2013	351	6	9	15
2012	316	6	24	15
2011	328	6	25	4
2010	308	6	29	4
2009	304	6	28	4

Where Seeking Franchisees: Franchisor is seeking new units internationally.

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

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).

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®: #119 (2013), #98 (2012), #104 (2011), #127 (2010), #171 (2009),

Fastest-Growing: #97 (2012),

Top Home-Based: #23 (2013), #21 (2012), #27 (2011), #34 (2010), #41 (2009),

America’s Top Global: #124 (2013), #81 (2012), #88 (2011), #101 (2010), #133 (2009),

American Leak Detection (ALD) is a plumbing inspection company headquartered in Palm Springs, California. It is a subsidiary of Water Intelligence PLC.^[1] Founded in 1974, ALD uses nondestructive testing to find leaks in water and sewer pipes, swimming pools and foundation slabs for residential, commercial, and municipal clients. It can also detect oil, gas and natural gas leaks. As of 2011 the company had 359 franchise units and 4 company-owned units in the United States, Canada, and other countries.

History[edit]

American Leak Detection was founded by Richard Rennick in 1974 in Palm Springs, California. In 1984, the company became afranchisor, and by 2010, it had achieved annual sales of $60 million.^[2]

In 2006, the company was bought out by Connecticut-based software company The PlainSight Group. PlainSight had developed a data-filtering algorithm which could be loaded onto hand-held devices to make leak detection much more efficient.^[3]

In 2010 ALD merged with Qonnectis PLC in a reverse takeover. The new company was named Water Intelligence PLC.^[4]

Products[edit]

The company’s motto is “leak detection without destruction.” ALD has patented a laser-sensor technology called LeakVue that detects leaks through surface changes.^[5]

The company also sells consumer products, such as a fogger which releases a sanitizer to fight against the spread of influenza and other diseases.^[6]

Awards and rankings[edit]

In 2008, American Leak Detection was ranked #181 in the Franchise 500—#1 in the Miscellaneous Maintenance Products & Services category. Entrepreneur Magazine also ranked the company as the #21 best home-based franchise for 2012.^[7]

Also in 2008, The Wall Street Journal ranked ALD as one of the Top 25 High Franchise Performers.