HOMEstretch Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
HOMEstretch is a home-services franchise that helps homeowners and real-estate agents get houses ready to sell, coordinating repairs, updates, and prep work. Franchisees run a project-management operation dispatching trades and managing pre-sale home projects in a territory.
FranchiseVerdict summary · 2026
A HOMEstretch franchise requires a total initial investment of $104K – $217K, including a $60K franchise fee. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $104K – $217K
- 36th pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 167
- 72nd pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $104K – $217K including a $60K franchise fee.
- RETURNSItem 21 audited statements: FY2025 Total Revenues of $3,087,575 comprise Royalties income $822,677, Franchise fees $1,668,406, Brand fees $108,186, Tech fees $388,275, and Other income $100,031. Net loss of $1,148,362 and members' equity deficit of $(2,266,440). Total liabilities of $6,200,740 = Total Current Liabilities $903,177 + Contract Liability (net of current) $5,297,563.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- DATAItem 19 reports gross revenue and financials rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Homestretch Home Services II LLC
- CEO title
- Chief Executive Officer
- Derek Shewmon
- Incorporated in
- OH
- HQ
- 5041 Oaklawn Drive, Cincinnati, Ohio 45227
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $3.1M
- vs $934K prior year
Overview
About
- CEO
- Derek Shewmon
- Headquarters
- OH
- Founded
- 2022
- FDD year
- 2026
- States available
- 28
Can you afford it, and what does the money buy?
Entry cost runs 29% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $217K
- Top 40% of category vs category
- Liquid capital req'd
- $25K – $45K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- Greater of 7.25% of Gross Revenue or the Minimum Monthly …
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.3%
- vs 9–13% typical
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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
HOMEstretch did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one HOMEstretch unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
46%
Within the 30–60% "attractive franchise" band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 21 audited statements: FY2025 Total Revenues of $3,087,575 comprise Royalties income $822,677, Franchise fees $1,668,406, Brand fees $108,186, Tech fees $388,275, and Other income $100,031. Net loss of $1,148,362 and members' equity deficit of $(2,266,440). Total liabilities of $6,200,740 = Total Current Liabilities $903,177 + Contract Liability (net of current) $5,297,563.
- Item 19 type
- gross revenue and financials
- Sample size
- 20 franchisees
- vs category median 32
- Range (low → high)
- $103K→$807K
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 321 Home Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.3% (near the Home Services average).
Disclosure
Item 19 reports gross revenue and financials rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth of +144.8% over 3 years (102 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How HOMEstretch Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 167
- Opened
- 102
- 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
- 3.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- +144.8%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 102
- Closed (3yr)
- 5
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- N/A
- limited sample (2 loans) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 verdict
- 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
- 03MINORRapid 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
What are you signing up for?
Ongoing fees run about 8.3% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Hamilton County, Ohio (mediation via AAA) |
| Jury trial waiver | No |
| Governing law | OH |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 2 hrs
- Training location
- Cincinnati, Ohio or other designated training location
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- 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?
HOMEstretch 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 Item 19 in the HOMEstretch FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the HOMEstretch FDD and qualifies whose outlets they describe.
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 164 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 B-grade franchise with a verdict score of 48 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent HOMEstretch, you can request corrections or provide updated information.
Other Home Services franchises
Compare similar franchise opportunities in the Home Services category
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.