If you’re considering purchasing a service-oriented franchise, you undoubtedly have numerous questions. Is this the right fit for you and your family? Would this concept work in your area? Do you have the “right” background and skill set?
Below are the most common questions we receive about franchise opportunities, answered by Judy Howard, director of franchise relations at the corporate office.
What’s the unique edge that American Leak Detection’s concept offers a franchise owner?
There are no other franchise concepts in our field- a field we created. We have techniques and equipment which are not available on the open market that keeps us in front of our competition.
Are there any territories available in California or Florida?
Not at this time. We got our start in Southern California and are based in Palm Springs, CA. It’s rare to see an available territory in either state, but sometimes this occurs when a team member decides to retire or is unable to continue operations. When this happens, those already in the system are given notice of the territory for sale, in case they would like to expand their existing territory. A territory is then offered to the general public.
What percentage of franchise owners come to you with no prior plumbing experience? Should you be a plumbing specialist to own one?
At least 90 percent of prospects who approach us have no plumbing background. Our franchisees come from all walks of life- banking, military, law enforcement, blue collar and white collar. The majority of our team members simply have an interest in “systems” and how they work.
One attraction to our concept is the fact franchisees don’t have to be a licensed plumber to perform leak detections. Some of our franchisees choose not to provide any plumbing or leak related repairs- they locate the leak, mark it and let the plumber do the repair. We encourage non-plumbers to consider our concept- we don’t want to compete with plumbers, we want to work with them.
What is a typical day like for a franchise owner?
This really depends on the franchisee and the services they provide. We typically see a franchisee/technician make three to four service calls per day. These can take anywhere from 30-60 minutes to all day, depending on the type of leak. Most average about two hours.
If they’re working without office support, they are also returning phone calls and scheduling appointments. They also spend time marketing, invoicing and paying bills.
What is the initial investment to purchase a territory?
We estimate your initial investment will be between $76,700 to $259,500. This range includes the initial fee for the licensing rights to the territory, use of the American Leak Detection trademarks, online lead generator, exclusive intranet site, technical support, business operations and marketing support and the yearly convention. Also included is the six week training program conducted in Palm Springs and the standard equipment package. Items not included in this cost which may be required is a service vehicle, telephone, insurance, office supplies, print collateral and marketing expenses.
What is the royalty rate to operate an American Leak Detection franchise?
These are 8-10 percent depending on monthly adjusted gross sales. When a franchisee reaches $750,000 in adjusted gross sales during a calendar year, their royalty rate is 6 percent for the remainder of that year. We do not charge an additional advertising royalty.
What are some other important items to consider when evaluating this franchise?
Are you interested in and physically able to perform the work?
Do you want to be a technician out in the field?
To see which American Leak Detection territories are available, visit: www.americanleakdetectionfranchise.com