FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for American Leak Detection.
Based on 2024 FDD · 4 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a American Leak Detection franchise shows an estimated initial investment of $77K – $260K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $120K franchise fee · 10% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
American Leak Detection requires a total initial investment of $77K to $260K (midpoint approximately $168K), with an initial franchise fee of $120K. The ongoing fee burden is 10% . This is below the industry average of approximately 22.3%, leaving more margin for the operator.
American Leak Detection does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
American Leak Detection operates approximately 93 franchised units. However, the brand has been contracting with a 10.2% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 0.0% is well below the industry average of approximately 4.9%, indicating strong franchisee financial outcomes.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2024 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2011-2021). 10 loans across 5 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about American Leak Detection, answered from FDD and SBA data.
The total initial investment for a American Leak Detection franchise ranges from $77K to $260K, according to their Franchise Disclosure Document.
American Leak Detection charges a 10% royalty fee on gross sales.
The initial franchise fee for American Leak Detection is $120,000.
There are approximately 93 American Leak Detection franchise locations as of 2023.
Profit data for American Leak Detection is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
American Leak Detection has an SBA loan default rate of 0.0% based on SBA 7(a) loan data.
Whether a American Leak Detection franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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