FranchiseVerdict
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FV-01214·STRONGExcellent95

HOMEstretch

Food & Beverage - Quick ServiceFranchising since 2022Website
Investment
$104K – $217K
13th pct Quick Service
Avg revenue
$386K
3rd pct Quick Service
Royalty
Units
167
79th pct Quick Service
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $104K – $217K including a $60K franchise fee.
  • Average unit revenue of $386K/year (median $341K). Estimated payback in 0.6 years.
  • Rated STRONG with a risk score of 30/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Homestretch Home Services II LLC
Incorporated in
Ohio
HQ
5041 Oaklawn Drive, Cincinnati, Ohio 45227
Auditor
Muhammad Zubairy, CPA PC
Audited financials
Franchisor revenue
$934K
vs $3.1M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one HOMEstretch unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $385,818
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: qsr
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $104K–$217K
Working capital
$
FDD reports $25K–$45K

Unlevered ROIC · per unit

30%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$58K
EBITDA margin
15.0%
Total invested
$195K
Payback
41 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 HOMEstretch units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$617K

on $3.1M purchase

Total debt

$2.5M

SBA $1.5M + senior + seller note

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
Founded
2022
FDD year
2026
States available
28

Item 7 · what it costs

The Vitals

Total investment
$104K – $217K
All-in to open one unit
Liquid capital
$25K – $45K
Cash you must have on hand
Franchise fee
$60K
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 v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$386K
Per unit, per year
Median gross sales
$341K
Item 19 type
Historical Revenues
Sample size
64 units
vs category median 37
Range (low → high)
$103K$807K
Cohort dispersion
Transparency
7 / 5
vs category median 4 / 5 · above
Revenue rank3th
vs Food & Beverage - Quick Service peers
Investment cost rank13th
Lower investment ranks lower (better)
Royalty rate rank84th
Lower royalty = lower percentile (better)
Unit count rank79th
vs Food & Beverage - Quick Service peers
Risk score rank1th
Lower risk = lower percentile (better)

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
2024
164+97
Franchised units
2025
67
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 22 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Available · 22 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
4
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

30
Risk · 0-100
STRONG30 / 100

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.

Score breakdown · what drove the 30 / 100 rating

  1. 01MINORExplosive unit growth of 144.8% YoY suggests rapid expansion that may outpace quality control and support infrastructure
  2. 02MEDHigh minimum monthly royalty fee structure not disclosed—unclear if franchisees can hit profitability thresholds consistently
  3. 03MINORAverage net income of $273k against $385k revenue implies ~29% net margin, which is healthy but dependent on location and operational efficiency
  4. 04MEDNo Item 19 financial performance representations disclosed in FDD—cannot verify if average unit volumes are achievable for new franchisees
  5. 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

Territory
Household count
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Not allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
15 hrs
On-the-job training
2 hrs
POS system
QuickBooks
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

41 numbers

Locked
(480) 908-••••
AZ
(781) 776-••••
MA
(219) 350-••••
IN

One-time purchase · CSV download · Validation questions included

FDD download

HOMEstretch · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above