American Leak DetectionFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A American Leak Detection franchise requires a total initial investment of $77K – $260K, including a $30K franchise fee and an ongoing 10.0% royalty[2]. The 2023 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 25 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2023 FDD issuance
Overview
- Investment
- $77K – $260K
- 18th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 10.0%
- 43rd pct Home Services
- Units
- 146
- 62nd pct Home Services
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 25 SBA loans charged off, well below the 16% franchise average.
Franchising since 1985. Systems this mature have refined operations and brand recognition.
The system contracted 12% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $77K – $260K including a $30K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 46/100. SBA loan charge-off rate of 0.0% across 25 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System 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
- Legal entity
- American Leak Detection, Inc.
- Parent company
- Water Intelligence plc
- CEO title
- Chairman and CEO
- Patrick DeSouza
- Incorporated in
- CA
- HQ
- 199 Whitney Avenue, New Haven, Connecticut 06511
- Auditor
- Marcum LLP
- Audited financials
- Franchisor revenue
- $49.5M
- vs $65.9M prior year
Overview
About
American Leak Detection franchisees operate leak detection and locating services for residential and commercial customers. Day-to-day activities include conducting water leak investigations using acoustic/electronic equipment, preparing diagnostic reports, coordinating with plumbers/contractors, managing service calls, and building recurring customer relationships. Revenue is primarily derived from per-job service fees and potential referral partnerships with repair contractors.
- CEO
- Patrick DeSouza
- Headquarters
- CT
- Founded
- 1974
- FDD year
- 2023
- States available
- 33
FDD Item 7 · 2023 filing · 13 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
- Better than avg vs category
- Liquid capital req'd
- $18K – $33K
- Near category avg vs category
- Franchise fee
- $30K – $120K
- Better than avg vs category
- Royalty
- 10.0%
- Sliding scale based on Adjusted Gross 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 | $150 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How American Leak Detection Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 146
- 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
- 0.0%
- Company-owned
- 41
- Corporate units in the system
- % franchised
- 72%
- vs corporate-owned
- Multi-unit owners
- 15.6%
- Net growth (yr3)
- -11.8%
- Net unit change last year
- 3-yr CAGR
- -16.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Continuity rate
- 88.2%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 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.
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 15
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into American Leak Detection's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 11 states
- Startup risk premium and job creation velocity
- 10-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 25 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit count combined with withheld financial performance data creates material uncertainty about franchisee profitability and system health.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Marcum LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: No
Score breakdown · what drove the 46 / 100 rating
- 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
- 04MINORTiered royalty structure (10%→6%) creates opaque earnings projections and incentivizes aggressive revenue claims
- 05MINOR5-year term is relatively short for service-based franchise requiring customer relationship rebuilding
- 06HIGHNo litigation disclosure provided, though absence doesn't confirm clean history—requires independent verification
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Population-based |
| 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 Operating Territory |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 220 hrs
- Training location
- Palm Springs, CA
- Ongoing training
- Required
- POS system
- QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
74 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
American Leak Detection · FDD (2023) PDF
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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is American Leak Detection's franchise failure rate?
Based on SBA 7(a) loan data, American Leak Detection has a charge-off rate of 0.0% across 25 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many American Leak Detection franchise locations are there?
As of their most recent FDD filing, American Leak Detection has 146 total units in the United States, including 105 franchised units and 41 company-owned units.
Is American Leak Detection a good franchise to buy?
FranchiseVerdict rates American Leak Detection as a A-grade franchise with a risk score of 46 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.