Accurate Leak and Line Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$91,250 - $285,150
Franchise Fee
$27,450
Total US Locations
8
Business Summary
Accurate Leak and Line operates a business that specializes in underground plumbing diagnosis and repair services for both residential and commercial customers. The company offers solutions that include traditional excavation and repair, as well as non-destructive CIPP trenchless pipe repair as a cost-effective alternative to complete system replacement.
Corporate History
Accurate Leak and Line, LLC was formed in Texas on November 12, 2020. The company began offering franchises in 2022. An affiliate, Corporate Enterprises Inc. dba Accurate Leak and Line, has been operating similar businesses in the Dallas/Fort Worth and Austin, Texas areas since 2002, and shares the same business address as the franchisor.
Financial Overview
Investment Range
$91,250 - $285,150
Franchise Fee (Low)
$27,450
Franchise Fee (High)
$54,900
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$20,000
Equipment Costs (High)
$60,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
As of December 31, 2022, Accurate Leak and Line reported total assets of $1,275 and total liabilities of $82,693, resulting in a retained earnings deficit of $81,418. A significant portion of the liabilities includes $82,693 due to a related affiliate. This related party loan is unsecured, has no stated interest rate, and its repayments are deferred with no specific repayment date. The funds from this loan were used to cover various operating expenses, indicating that Accurate Leak and Line relies on related party funding and has a negative equity position.
Financing Details
Accurate Leak and Line does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
8
Franchised Units
2
Corporate Units
6
Avg Square Footage
500
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Accurate Leak and Line has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Accurate Leak and Line has not been involved in any material legal proceedings that need to be reported to potential franchisees.
Bankruptcy History
Accurate Leak and Line has no bankruptcy history to report for itself or its key personnel. Item 4 of the Franchise Disclosure Document explicitly states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew the franchise agreement, Accurate Leak and Line franchisees must provide notice between 90 and 180 days before their current term ends. They must be in full compliance with all contractual obligations to Accurate Leak and Line and third parties. Franchisees are also required to make any necessary changes to their business to conform to the franchisor's then-current standards for new franchisees. Finally, they must sign the franchisor's current standard form of franchise agreement and related documents, including a personal guaranty, and execute a general release of all claims against Accurate Leak and Line and its affiliates. A renewal fee equal to 25% of the then-current initial franchise fee will be due.
Training & Support Program
Franchisor Assistance
Accurate Leak and Line provides pre-opening assistance to its franchisees, including criteria for location selection and advice on business layout, design, and build-out. The franchisor also provides specifications and approved supplier lists for necessary equipment, signs, inventory, and supplies. Initial training is provided to the Principal Executive and one additional team member at no charge, covering operational and marketing strategies, diagnostics, repairs, pricing, and ServiceTitan software. Accurate Leak and Line also advises on the initial marketing plan and provides one week of on-site support during the business opening. After opening, Accurate Leak and Line offers advice on improving and developing the business and resolving operational problems via telephone or electronic communication, with in-person support available for a fee. The franchisor also provides recommended administrative, bookkeeping, accounting, and inventory control procedures, manages a brand fund for system-wide marketing, and maintains a brand website that includes franchisee information.
Initial Training Hours
72
Training Location
Corporate office in Gun Barrel City, Texas, or virtually/remotely
Ongoing Support
After opening, Accurate Leak and Line offers ongoing advice and consultation on improving and developing the business and resolving operational problems, which can be provided by telephone or electronic communication. In-person support is available for a daily fee plus expenses if requested. The franchisor may also require the Principal Executive and other employees to complete additional training programs, for which a reasonable fee may be charged. Franchisees are required to attend an annual convention, for which a fee of $1,000 per person is charged, plus travel and lodging. Accurate Leak and Line also manages a Brand Fund for general system-wide marketing and maintains a brand website that includes franchisee business information.
Franchise Requirements
Ideal Candidate Profile
Accurate Leak and Line seeks qualified individuals and entities to operate their franchised business specializing in underground plumbing diagnosis and repair service. The Principal Executive, who is the executive primarily responsible for the business, must own at least 10% of the business and must participate personally in its direct operation, devoting substantial time and attention. They must also complete the initial training program and any future post-opening training. If the business is owned by an entity, all owners must sign a Guaranty and Non-Compete Agreement. Additionally, the general manager of the business (whether the franchisee or a hired person) must successfully complete the training program. Accurate Leak and Line also considers conversion businesses, which are existing businesses providing similar services, offering a reduced initial franchise fee for eligible candidates who provide two years of tax returns.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Commercial
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
Accurate Leak and Line grants franchisees a standard territory that will cover a minimum population of 1,000,000 people and a maximum of 1,500,000 people, or a 25-mile radius, whichever is smaller. Each territory is defined by one or more zip codes, using the most recent U.S. Census Data or other population statistical sources selected by the franchisor.
Staffing Notes
Accurate Leak and Line provides franchisees with suggested staffing levels and guidelines for hiring employees. They also offer operational instructions in the Brand Standards Manual that franchisees can use for training new employees. The Principal Executive, who must own at least 10% of the business, is required to participate in the direct operation and devote substantial time to the business. They must complete the initial training and any post-opening training programs developed by Accurate Leak and Line. The general manager of the business (who can be the Principal Executive or another hired person) must also successfully complete the training program. Accurate Leak and Line may also require the general manager and other key employees to sign confidentiality and non-compete agreements. Franchisees are solely responsible for all hiring decisions, employment conditions, and actions of their personnel, and are not considered joint employers with Accurate Leak and Line.