HOMEstretchFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A HOMEstretch franchise requires a total initial investment of $104K – $217K, including a $60K franchise fee. Per the 2026 FDD, average unit revenue was $386K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $104K – $217K
- 35th pct Home Services
- Avg gross sales
- $386K
- 9th pct Home Services
- Royalty
- N/A
- Units
- 167
- 65th 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
The system grew 145% year-over-year. Fast growth means demand, but can strain support.
170% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $104K – $217K including a $60K franchise fee.
- Average unit revenue of $386K/year (median $341K), with an estimated 170% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 31/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Homestretch Home Services II LLC
- Incorporated in
- OH
- HQ
- 5041 Oaklawn Drive, Cincinnati, Ohio 45227
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $934K
- vs $3.1M prior year
Overview
About
HOMEstretch franchisees operate home services businesses, likely focused on cleaning, maintenance, or similar residential service delivery. Franchisees manage field teams, coordinate customer schedules, handle billing/collections, and maintain service quality standards across their protected territory.
- CEO
- Derek Shewmon
- Headquarters
- OH
- Founded
- 2022
- FDD year
- 2026
- States available
- 28
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $25K | $45K |
| Equipment, build-out, other | $19K | $112K |
| Total initial investment | $104K | $217K |
Source: HOMEstretch 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$46K
12.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $217K
- Better than avg vs category
- Liquid capital req'd
- $25K – $45K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- the greater of: (i) 7.25% of the Gross Revenue generated …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
- Payback period
- 0.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $600 |
| Transfer fee | $10K |
| Renewal fee | $6K |
| Total fee load | 8.3% of rev |
Financial Performance
- Avg gross sales
- $386K
- Per unit, per year
- Median gross sales
- $341K
- Avg p&l bottom line
- $273K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 170.4%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical Revenues
- Sample size
- 64 units
- vs category median 25 · large
- Range (low → high)
- $103K→$807K
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 349 Home Services brands
vs Home Services averages
How HOMEstretch Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 167
- Opened
- 102
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- +144.8%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 28 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $408K
- Median loan
- $204K
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HOMEstretch's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moderate risk profile with strong unit economics offset by aggressive growth trajectory, undisclosed minimum royalty structure, and lack of FDD financial disclosures—suitable for experienced operators in underserved markets.
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 31 / 100 rating
- 01MINORExplosive unit growth of 144.8% YoY suggests rapid expansion that may outpace quality control and support infrastructure
- 02MEDHigh minimum monthly royalty fee structure not disclosed—unclear if franchisees can hit profitability thresholds consistently
- 03MINORAverage net income of $273k against $385k revenue implies ~29% net margin, which is healthy but dependent on location and operational efficiency
- 04MEDNo Item 19 financial performance representations disclosed in FDD—cannot verify if average unit volumes are achievable for new franchisees
- 05MINORRapid scaling (144.8% growth) increases risk of franchisee cannibalization and market saturation in protected territories
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Household count |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 2 hrs
- POS system
- QuickBooks
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks
Item 20 · call current owners
Franchisee Contacts
75 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HOMEstretch · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HOMEstretch franchise?
The total investment to open a HOMEstretch franchise ranges from $104K – $217K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HOMEstretch franchise owners earn?
According to Item 19 of the HOMEstretch FDD, the average gross sales per unit is $386K. The median is $341K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is HOMEstretch's franchise failure rate?
SBA 7(a) loan charge-off data is not available for HOMEstretch (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 HOMEstretch franchise locations are there?
As of their most recent FDD filing, HOMEstretch has 167 total units in the United States, including 0 franchised units and 3 company-owned units. 102 new units were opened in the latest reporting year.
Is HOMEstretch a good franchise to buy?
FranchiseVerdict rates HOMEstretch as a A-grade franchise with a risk score of 31 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.