American Leak Detection Franchise Cost, Revenue & Review 2026
- Investment
- $77K – $260K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 25 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
American Leak Detection is a home-services franchise that finds hidden water, sewer, and gas leaks using non-invasive equipment for homes and businesses. Franchisees run a service operation dispatching technicians for leak-locating jobs in a territory.
FranchiseVerdict summary · 2026
A American Leak Detection franchise requires a total initial investment of $77K – $260K, including a $30K – $120K franchise fee and an ongoing 10.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $77K – $260K
- 17th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 75th pct Home Services
- Units
- 140
- 67th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $77K – $260K including a $30K franchise fee, 10.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative: net -15 franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- DECLINESystem contracting at -16.0% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- American Leak Detection, Inc.
- Parent company
- American Leak Detection Holding Corp.
- FDD Item 1, page 10 of the 2024 FDD
- Ultimate parent
- Water Intelligence plc
- FDD Item 1, page 10 of the 2024 FDD
- Predecessor
- Richard Rennick
- Prior franchisor entity
- CEO title
- Chairman and CEO
- Patrick DeSouza
- Incorporated in
- CT
- HQ
- 199 Whitney Avenue Floor 2, New Haven, CT 06511
- Auditor
- Marcum LLP
- Audited financials
- Franchisor revenue
- $65.9M
- vs $49.5M prior year
Overview
About
- CEO
- Patrick DeSouza
- Headquarters
- CT
- Founded
- 1974
- FDD year
- 2024
- States available
- 33
Can you afford it, and what does the money buy?
Entry cost is about typical for a home services franchise (near the category median).
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Fee | $30K | $120K | |
| Equipment and Products Package | $26K | $52K | |
| Training Package | $3K | $6K | |
| Business Licenses | $0 | $250 | |
| Telephone Security Deposit | $30 | $250 | |
| Personal Working Hand Tools | $200 | $2K | |
| Work Vehicle | $0 | $35K | |
| Desk, Computer Hardware, Incidental Office Supplies | $100 | $5K | |
| Shipping | $100 | $750 | |
| Insurance | $750 | $3K | |
| Sales Taxes, City, County, State | $0 | $3K | |
| Business Management Accounting Software | $75 | $300 | |
| Additional Funds to Commence Operations | $18K | $33K | |
| Total initial investment | $77K | $260K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $77K – $260K
- Top 40% of category vs category
- Liquid capital req'd
- $18K – $33K
- Middle of category vs category
- Franchise fee
- $30K – $120K
- Top 40% of category vs category
- Royalty
- 10.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $3K |
| Renewal fee | $0 |
| Inventory (initial) | $26K – $52K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
American Leak Detection makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one American Leak Detection unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 10.0% — above the Home Services median of 8.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -16.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 16% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services medians
How American Leak Detection Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 140
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 47
- Corporate units in the system
- % franchised
- 72%
- vs corporate-owned
- Multi-unit owners
- 15.6%
- Net growth (3-yr)
- -16.0%
- Net unit change over 3 years
- 3-yr CAGR
- -16.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 14
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
- Continuity rate
- 88.2%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
59 current owners across 22 states.
- CA 17
- FL 10
- CO 4
- CT 3
- AL 2
- AR 2
- AZ 2
- GA 2
- ID 2
- IN 2
- LA 2
- IL 1
- +10 more states
Counts only, from the list the franchisor prints in Item 20; 1 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 25
- Loan volume
- $7.8M
- Median loan
- $94K
- 50th percentile
- Charge-off rate
- Limited · 25 loans
- Limited SBA coverage: 25 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 25 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 0
- Typical loan rate
- 5.7%
- avg rate to borrowers
- Franchised industry avg
- 20.0%
- n=454 loans
- Jobs supported
- 97
- 1.3 per loan
- Lender concentration
- 20%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in plumbing, heating, and air-conditioning contract, franchised businesses charge off at 20.0% vs 14.5% for independents — franchising is associated with 38% higher SBA default risk in this category.
Top lenders financing American Leak Detection franchisees
Showing 3 of 15 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for American Leak Detection from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 5.69%
- Lender concentration
- 20.0%
- Job velocity
- 1.3 per $100K
- NAICS benchmark
- 13.6%
- NAICS 238220
- Jobs supported
- 97
Top SBA lendersTop lender holds 20% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Readycap Lending, LLC | 4 | $311K | 0.0% |
| 2 | JPMorgan Chase Bank, National Association | 3 | $1.9M | 0.0% |
| 3 | Webster Bank National Association | 2 | $65K | 0.0% |
| 4 | Fifth Third Bank | 2 | $2.6M | N/A |
| 5 | One Valley Bank, Inc | 1 | $90K | 0.0% |
| 6 | Business Lenders, LLC | 1 | $80K | 0.0% |
| 7 | Truist Bank | 1 | $50K | 0.0% |
| 8 | Banc of California | 1 | $230K | 0.0% |
| 9 | North Louisiana BIDCO, LLC | 1 | $180K | 0.0% |
| 10 | SouthState Bank, National Association | 1 | $220K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 4 | 0 | 0.0% |
| FLFlorida | 4 | 0 | 0.0% |
| CTConnecticut | 2 | 0 | 0.0% |
| GAGeorgia | 2 | 0 | 0.0% |
| WVWest Virginia | 2 | 0 | 0.0% |
| IDIdaho | 1 | 0 | 0.0% |
| INIndiana | 1 | 0 | 0.0% |
| KYKentucky | 1 | 0 | 0.0% |
| LALouisiana | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Declining unit count combined with withheld financial performance data creates material uncertainty about franchisee profitability and system health.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Marcum LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited consolidated financial statements of American Leak Detection, Inc. and Affiliates (Exhibit E), FY ended Dec 31, 2022. Total Revenue $65,858,625 comprises royalties $6,746,928, operated sales $48,045,601, municipal sales $441,828, parts and equipment sales $668,333, business-to-business sales $9,892,997, and franchise sales $62,938. Note: Item 8 separately states FY2022 total revenues of $63,148,788. Auditor report dated March 30, 2023, Hartford, CT (CPA firm name not present in text).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 53 / 100 verdict
- 01MEDUnit count declined 11.8% YoY (146 → ~129 units), indicating system contraction and potential franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and profitability validation
- 03MINORWide investment range ($76.7K–$259.5K) suggests inconsistent territory valuations and unclear initial capital requirements
- 04MINORNo litigation disclosure provided, though absence doesn't confirm clean history—requires independent verification
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 300,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | closest to claimant |
| Jury trial waiver | Yes |
| Governing law | State of franchised Operating Territory |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 220 hrs
- Training location
- Palm Springs, CA
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisee (home-based permitted)
- Franchisor financing
- Not offered
- Item 10
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
60 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a American Leak Detection franchise?
The total investment to open a American Leak Detection franchise ranges from $77K – $260K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do American Leak Detection franchise owners earn?
American Leak Detection makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns American Leak Detection?
American Leak Detection is franchised by American Leak Detection, Inc.. Its parent company is American Leak Detection Holding Corp.. The ultimate parent named in the FDD is Water Intelligence plc. Source: FDD Item 1, 2024 filing.
What is Item 19 in the American Leak Detection FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the American Leak Detection FDD and qualifies whose outlets they describe.
What is American Leak Detection's franchise failure rate?
SBA 7(a) loan charge-off data is not available for American Leak Detection (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many American Leak Detection franchise locations are there?
As of their most recent FDD filing, American Leak Detection has 140 total units in the United States, including 93 franchised units and 47 company-owned units.
Is American Leak Detection a good franchise to buy?
FranchiseVerdict rates American Leak Detection as a B-grade franchise with a verdict score of 53 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.