American Leak Detection

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American Leak Detection

Home Services
Other Home Services

American Leak Detection Franchise FDD, Costs & Fees (2025)

American Leak Detection specializes in detecting and repairing water leaks, helping homeowners and businesses prevent water damage and conserve resources.

American Leak Detection is a leading franchise specializing in non-invasive detection and repair of hidden leaks in water, sewer, gas, pool, and spa systems. The company was founded in 1974 by Richard “Dick” Rennick in Palm Springs, California, where it remains headquartered today.

It revolutionized the leak detection industry with electronic equipment that locates leaks without damaging property. The franchise began expanding in 1984, and today operates in over 140 territories across the United States, Canada, and Australia.

What sets American Leak Detection apart is its commitment to “Leak Detection Without Destruction™.” The brand leverages decades of experience, specialized technology, and a strong reputation for service reliability.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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
Totals $76,755 - $259,550
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
Totals $76,755 - $259,550

Franchise Disclosure Document

KEY FRANCHISE STATS

All you need to know about this franchise

Started franchising
1984
Franchisees

?

93
+
-22%
-22%
Franchise fee

?

$29,500
Investment

?

$77,000 - $260,000
Revenue (AUV)

?

Undisclosed
Upgrade

$0

+
n.a.
n.a.
Operating Profit

?

Upgrade

n.a.

Home based

?

Yes
Upgrade
Yes
Passive investment

?

No
Upgrade
No
FDD
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Competitors

Below are some of

American Leak Detection

key competitors in the

Other Home Services

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
Upgrade
Gross Profit
Upgrade
EBITDA
Upgrade

93

New
+
-22%
-22%

$29,500

$77,000

$260,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

222

New
+
-6%
-6%

$39,900

$54,000

$70,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

0

New
+
n.a.
n.a.

$50,000

$210,000

$309,000

n.a.

$6,220,000

$xxx,xxx

43.0%

xx%

n.a.

8.0%

xx%

n.a.

110

New
+
182%
182%

$49,500

$144,000

$205,000

n.a.

$1,170,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

184

New
+
38%
38%

$49,500

$128,000

$196,000

n.a.

$373,000

$xxx,xxx

66.0%

xx%

n.a.

36.0%

xx%

n.a.

49

New
+
29%
29%

$75,000

$96,000

$229,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

100

New
+
69%
69%

$45,000

$266,000

$410,000

n.a.

$1,139,000

$xxx,xxx

92.0%

xx%

n.a.

n.a.

xx%

n.a.

22

New
+
-29%
-29%

$12,995

$40,000

$180,000

n.a.

$446,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

107

New
+
11%
11%

$85,000

$759,000

$1,247,000

n.a.

$230,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

38

New
+
n.a.
n.a.

$65,000

$324,000

$545,000

n.a.

$2,088,000

$xxx,xxx

80.7%

xx%

n.a.

34.1%

xx%

n.a.

313

New
+
10%
10%

$50,000

$107,000

$539,000

n.a.

$2,314,000

$xxx,xxx

53.5%

xx%

n.a.

13.5%

xx%

n.a.

8

New
+
n.a.
n.a.

$59,500

$170,000

$179,000

n.a.

$415,000

$xxx,xxx

56.3%

xx%

n.a.

29.0%

xx%

n.a.

55

New
+
104%
104%

$50,000

$443,000

$853,000

n.a.

$3,776,000

$xxx,xxx

36.2%

xx%

n.a.

n.a.

xx%

n.a.

77

New
+
-19%
-19%

$63,000

$147,000

$172,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

375

New
+
8%
8%

$40,000

$84,000

$207,000

n.a.

$829,000

$xxx,xxx

64.4%

xx%

n.a.

13.6%

xx%

n.a.

9

New
+
-18%
-18%

$49,500

$126,000

$181,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

0

New
+
n.a.
n.a.

$59,500

$246,000

$368,000

n.a.

$1,065,000

$xxx,xxx

39.2%

xx%

n.a.

18.4%

xx%

n.a.

211

New
+
17%
17%

$42,500

$152,000

$315,000

n.a.

$782,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

103

New
+
-27%
-27%

$49,500

$131,000

$160,000

n.a.

$1,220,000

$xxx,xxx

62.2%

xx%

n.a.

15.6%

xx%

n.a.

460

New
+
-10%
-10%

$39,583

$130,000

$814,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

209

New
+
50%
50%

$33,000

$85,000

$277,000

n.a.

$581,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

27

New
+
35%
35%

$60,000

$189,000

$238,000

n.a.

$663,000

$xxx,xxx

72.2%

xx%

n.a.

18.2%

xx%

n.a.

126

New
+
-2%
-2%

$45,000

$59,000

$119,000

n.a.

$3,255,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

55

New
+
-7%
-7%

$49,500

$107,000

$407,000

n.a.

$363,000

$xxx,xxx

71.0%

xx%

n.a.

n.a.

xx%

n.a.

4

New
+
n.a.
n.a.

$25,000

$74,000

$101,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

4

New
+
n.a.
n.a.

$35,000

$72,000

$106,000

n.a.

$555,000

$xxx,xxx

53.9%

xx%

n.a.

n.a.

xx%

n.a.

284

New
+
-5%
-5%

$29,500

$61,000

$92,000

n.a.

$241,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

93

New
+
n.a.
n.a.

$59,900

$113,000

$213,000

n.a.

$590,000

$xxx,xxx

42.6%

xx%

n.a.

13.6%

xx%

n.a.

571

New
+
3%
3%

$23,000 - $63,000

$138,000

$171,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

61

New
+
42%
42%

$60,000

$121,000

$183,000

n.a.

$482,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

0

New
+
n.a.
n.a.

$42,500

$120,000

$201,000

n.a.

$435,000

$xxx,xxx

74.3%

xx%

n.a.

n.a.

xx%

n.a.

146

New
+
0%
0%

$46,450

$946,000

$962,000

n.a.

$4,670,000

$xxx,xxx

32.6%

xx%

n.a.

n.a.

xx%

n.a.

161

New
+
-1%
-1%

$19,950

$185,000

$299,000

n.a.

$287,000

$xxx,xxx

61.0%

xx%

n.a.

n.a.

xx%

n.a.

200

New
+
-1%
-1%

$45,000

$65,000

$92,000

n.a.

$272,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

32

New
+
n.a.
n.a.

$65,000

$216,000

$409,000

n.a.

$1,446,000

$xxx,xxx

75.1%

xx%

n.a.

n.a.

xx%

n.a.

36

New
+
300%
300%

$59,900

$89,000

$169,000

n.a.

$159,000

$xxx,xxx

66.0%

xx%

n.a.

37.0%

xx%

n.a.

106

New
+
51%
51%

$59,500

$120,000

$139,000

n.a.

$1,081,000

$xxx,xxx

61.2%

xx%

n.a.

13.8%

xx%

n.a.

13

New
+
0%
0%

$2,000 to $15,000

$18,000

$84,000

n.a.

$0

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

79

New
+
61%
61%

$50,000

$103,000

$135,000

n.a.

$703,000

$xxx,xxx

56.6%

xx%

n.a.

15.9%

xx%

n.a.

395

New
+
21%
21%

$49,500

$189,000

$234,000

n.a.

$428,000

$xxx,xxx

65.1%

xx%

n.a.

22.0%

xx%

n.a.

235

New
+
-5%
-5%

$42,500

$59,000

$93,000

n.a.

$97,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

50

New
+
35%
35%

$60,000

$233,000

$317,000

n.a.

$1,564,000

$xxx,xxx

59.4%

xx%

n.a.

n.a.

xx%

n.a.

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Training

American Leak Detection provides a comprehensive training program to its franchisees, structured to equip them with both technical and operational knowledge. The training programs are as follows:

  1. Initial Training Program: This mandatory program spans approximately six weeks and includes both classroom and on-the-job instruction. Topics cover business operations, equipment and production training, technology introduction, marketing, and business management. The location for training is primarily Bridgeport, CT, and includes 212 hours of practical application training on-site.
  2. Manuals and Home Study: Franchisees receive manuals such as the Business Operations & Procedures Manual and Equipment Training & Production Manual. These are used for self-study and are loaned upon signing the agreement and payment of the initial fee.
  3. Ongoing and Additional Training: Special training is available at the franchisor's headquarters upon written request. These sessions can address emerging needs or underperformance. Optional training may come with a fee, and the franchisee bears all related expenses.
  4. Manager Training Requirement: If the franchisee is not directly managing the business, their appointed manager must complete the initial training successfully, unless a waiver is granted.

Territory Protection

American Leak Detection does provide a form of territory protection to its franchisees. Each franchisee is granted an "Operating Territory" in which they have the exclusive right to operate using the company's system and marks.

The franchisor commits not to establish another franchise or perform its own services within this territory during the agreement's term, provided the franchisee complies with all contractual obligations.

While the franchisor agrees to maintain exclusivity in the assigned territory, this protection is not absolute. For instance, the franchisor reserves the right to grant temporary, non-exclusive rights for service in unassigned areas, and franchisees may only operate outside their designated area with special permissions.

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4
+
n.a.
n.a.
Investment

?

$74,000 - $101,000
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Garage Force

Garage Force is a flooring franchise that specializes in high-performance, durable concrete coatings for garages, basements, and commercial spaces.

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184
+
38%
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Investment

?

$128,000 - $196,000
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Life Saver Pool Fence

Life Saver Pool Fence is a safety franchise providing high-quality, removable pool fences to protect children and pets from accidental drownings.

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4
+
n.a.
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Investment

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$72,000 - $106,000
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Garage Kings

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USA Insulation

USA Insulation offers energy-efficient insulation solutions for homes and buildings, promoting energy savings, comfort, and reduced utility costs.

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100
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69%
69%
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$266,000 - $410,000
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U Got Stink specializes in odor removal services for residential and commercial properties, using advanced techniques and products to eliminate odors caused by smoke, pets, mold, and other sources, leaving spaces fresh and odor-free.

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?

13
+
0%
0%
Investment

?

$18,000 - $84,000
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