A Cincinnati real estate-focused startup is looking to grow its model nationally by offering franchise opportunities starting this year.
Oakley-based Homestretch, a home services startup that offers sellers a one-stop shop for touchups like painting, landscaping, deep cleaning and more, said the model will allow it grow faster, although founders Nick Lobert and Derek Shewmon plan to take a slow and steady approach to start.
The goal is to expand to roughly five cities in 2023. The company also will look to add to its team locally as the concept takes root.
“We know Homestretch is a concept that can work in any market, especially with home trends the way they are,” Shewmon told me. “As we dug into the franchising option and talked to people and kicked the tires, it made the most sense (in terms of expansion strategies). With the brand we've created, the company works best with a dedicated person diving into the community.”
Shewmon and Lobert, both alums of Blue Ash-based Everything but the House, the online estate auctioneer, founded Homestretch in 2019 to alleviate stress for homeowners looking to move or downsize.
Its services range from junk removal to painting, carpet and flooring, deep cleaning and light landscaping, processes that, when done individually, could involve as many as 15 phone calls to various vendors.
Its clients largely include real estate agents but homeowners as well. The company essentially picks up where ETBH leaves off – it offers consultations and issues job quotes within 24 hours and typically starts work within three to five days. Homestretch homes sell faster and for more money, the company said.
Shewmon said they've been building out its franchising strategy for the past year, working with various attorneys and consultants.
Homestretch will initially focus on regional markets like Cleveland, Louisville, Nashville and Pittsburgh, cities within relatively close proximity and similar to Cincinnati and Columbus, where Homestretch expanded last year. The company opened a warehouse in Gahanna, located eight miles east of downtown, and has hired three employees there. It has a staff of 15 overall.
The Homestretch franchise fee is $45,000, while the anticipated cost of opening a franchise ranges between $80,650 and $137,400. Franchisors will attend a multi-day in-person training in Cincinnati ahead of launch.
The ideal franchisee will be entrepreneurial-minded, Shewmon said. Owners don’t necessarily need a background in construction or real estate, although an operations background is helpful.
“This business is simple on the face of it, but when you're offering multiple services in a tight timeline, you need somebody who’s good at scheduling and can put puzzle pieces together,” he said.
The company will add jobs in Cincinnati as its franchisor entity grows, including a general manager position. Additional hires could include trainers, salespeople and marketers.
While the goal is to get five franchises off the ground in 2023, Shewmon said Homestretch will be intentional when it comes to its partners.
To date, its growth has been solely organic. Shewmon and Lobert have said in the past they plan to grow the business carefully, particularly given the sector they’re serving. A home is often a person’s biggest asset and “one they're most protective about,” Shewmon said
“You only have one reputation. Like everything else we’ve done, we’ll be very diligent and cautious in the first year while we figure this out, and once we’ve got the right formula, we’ll pour some on gasoline on this thing,” he said. “We hope to bring Homestretch across the country and be a national leader in the space.”
