American Leak Detection Franchise FDD, Costs & Fees (2026)
American Leak Detection specializes in detecting and repairing water leaks, helping homeowners and businesses prevent water damage and conserve resources.
KEY FRANCHISE STATS
Franchisees
?
93
+
-22%
-22%
Franchise fee
?
$29,500
Investment
?
$77,000 - $260,000
Revenue (AUV)
?
Undisclosed
$0
+
n.a.
n.a.
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American Leak Detectionis 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
The initial investment required for a American Leak Detection franchise is
$77,000 - $260,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Below is American Leak Detection's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
American Leak Detection had 140 total units in 2024, of which 93 were franchised-owned and 47 company-owned.
Frequently Asked Questions
What is the royalty fee?
The royalty fee for a American Leak Detection franchise is 6% - 10%. In addition, you would have to pay the advertising (or national brand fund) fee of n.a..
What is the total investment?
The initial investment required for a American Leak Detection franchise is $77,000 - $260,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
What is the initial franchise fee?
The initial franchise fee for a American Leak Detection franchise is $29,500. This is typically paid upfront as part of the total initial investment, after signature of the Franchise Agreeement.
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:
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.
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.
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.
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.