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Row House Franchise Costs $328K – $491K (+ 2024 Profits)

Row House, established in New York City in 2014, represents a revolutionary approach to fitness through its focus on indoor rowing. Founded by the husband-and-wife team, Eric Von Frohlich and Debra Strougo, Row House offers a distinctive fitness experience that caters to individuals of all shapes, sizes, and fitness levels.

The concept was created with the idea of providing a workout that could accommodate varying fitness levels within a single session, leading to its rapid expansion across the United States and Canada. 

Row House’s franchise headquarters is located in Costa Mesa, California. The franchise began offering opportunities in 2017, building on its reputation as a leader in low-impact, high-energy workouts that emphasize team dynamics and community.

Row House is a member of the Xponential Fitness family, which is known for its extensive portfolio in the boutique fitness industry, providing robust support systems for franchisees that include comprehensive training, marketing, sales support, and real estate selection assistance.

a financial plan for a franchise
a financial plan for a franchise

Initial investment

Type of ExpenditureAmount
Initial Franchise Fee$60,000
Initial Training Program Fees$0
Travel & Living Expenses while Training$0 – $3,000
Real Estate/Lease and Professional Fees$22,500 – $46,500
Net Leasehold Improvements$125,000 – $207,000
Signage$18,000 – $25,000
Insurance$1,200 – $2,500
Lease Payments in Connection with Exercise Equipment Package and Initial FF Package$4,200 – $14,300
Proprietary Initial Inventory Kit$12,000
Computer System Components(s) and Software Setup$6,500
Audio and Visual Equipment$47,000
Initial Marketing Spend, including amounts on Opening Support Program$15,000 – $20,000
RH University Program$5,000
Music and Technology Fees$1,895
Additional Funds – 3 months$10,000 – $40,000
TOTAL$328,000 – $491,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee for establishing a single studio is $60,000, due upon signing the Franchise Agreement. This fee is fully earned upon payment and is non-refundable.

Royalty Fee

The royalty fee is 7% of Gross Sales generated by the studio over the relevant reporting period, payable weekly via electronic funds transfer based on the previous week’s Gross Sales.

Brand Development Fund Contributions (Advertising Fee)

Currently set at 2% of Gross Sales, these contributions are due weekly at the same time and in the same manner as the Royalty Fee, beginning when the studio starts generating revenue.

Technology Fee

The ongoing Technology Fee, which covers costs associated with developing, implementing, and licensing technology for the studio, is currently $250 per month.

Transfer Fee

The transfer fee for a Franchise Agreement is $10,000, payable upon request for approval of any proposed transfer. For Development Agreements, it’s $10,000 per undeveloped franchise.

Renewal Fee

A renewal fee of $10,000 is due at the time of renewal. The studio must also be renovated to conform to the current standards and image at the owner’s expense.

RH University Program Fee

The fee for the initial Authorized Row House Instructors to attend the RH University Program is $5,000 per program, with subsequent program fees at $350 per trainee.

Additional Training Fee

If additional training is provided at the franchisee’s request or required on-site at the studio, the current fee is $500 per day per trainer.

revenue

Revenue & Profits

a financial plan for a franchise
a financial plan for a franchise

Franchise pros and cons

The Pros:

  • Proven and unique fitness concept: the rowing concept is one of its kind in the competitive fitness industry, delivering results within an untapped niche. 
  • A recurring revenue model: indoor rowing is an ongoing arrangement, attracting recurrent revenue as long as you satisfy the client’s needs. 
  • Multiple income streams: membership fees, class packages and retail sales.
  • Low-cost model: the franchisor uses a simple business model with a low-cost entry, low labor requirements and affordable real estate planning. 
  • Extensive franchisor support: the Row House team boasts decades of experience in the fitness industry to help franchisees launch and grow their businesses. The franchisor guides new business owners from site selection to lease negotiation, construction and staff recruitment. Extensive ongoing training in the form of weekly and monthly webinars and one on one consultations are vital to building a successful business.
  • Scalable business: franchisees can bank on vendor relationships with national partners and low development costs to scale their businesses.
  • Growth potential: indoor rowing is a new concept in the health and fitness industry. Opening a Row House franchise is an opportunity to join a lucrative field with limitless growth potential. 
  • Sales, marketing and advertising support: the franchisor helps business owners market their fitness studios. 
  • Financial assistance: Row House works with third-party financial sources to help franchisees secure funding for their fitness clubs. 
  • Exclusive territories: franchisees have exclusive rights to operate their rowing workout studios in designated locations without competition from other Row House units. 

The Cons:

  • Full-time business: not a part-time investment or a side hustle. 
  • No absentee ownership: franchisees must be involved in every business operation. 
  • Minimum employee requirement: 8 employees are required to operate a Row House franchise.
  • Not a mobile unit/home-based opportunity: franchisees must operate within the physical locations. 
  • Competition: may include 9Round Fitness, GritCycle and TriggerPoint Systems.

How to open a Row House Franchise

1. Research and Understand the Brand

  • Explore the Row House franchise concept to ensure it aligns with your interests and business goals.
  • Understand the unique selling points of Row House, such as its low-impact, full-body rowing workouts and community-focused approach​​.

2. Financial Preparation

  • Assess your financial readiness, ensuring you meet the minimum financial requirements for liquid capital and net worth.
  • Consider the total investment range and understand the financial commitments involved in opening a Row House studio​.

3. Initial Inquiry and Application

  • Submit an initial inquiry to Row House expressing your interest in the franchise opportunity.
  • Fill out the application form with your personal and business information to start the qualification process​​.

4. Discovery Process

  • Engage in the discovery process, which may include meetings, webinars, or presentations to learn more about the franchise.
  • This step often involves detailed discussions about the business model, support systems, and expectations from both sides​​.

5. Review Franchise Disclosure Document (FDD)

  • Carefully review the Franchise Disclosure Document provided by Row House. This document contains crucial details about the franchise opportunity, including fees, investment requirements, and legal obligations​​.

6. Due Diligence and Consultation

  • Conduct thorough due diligence by researching the fitness industry, market potential, competition, and local demand for rowing-based fitness classes.
  • Consult with financial advisors, legal counsel, and existing franchisees to gain insights and advice on owning a Row House franchise​ ​.

7. Discovery Day and Final Approval

  • Attend a Discovery Day, if offered, to meet the Row House corporate team, visit existing studios, and get a feel for the day-to-day operations and company culture.
  • After Discovery Day, you’ll typically go through a final evaluation process leading to approval as a franchisee​​.

8. Sign Franchise Agreement

  • Once approved, you’ll sign the franchise agreement, securing your rights as a Row House franchisee.
  • The agreement will outline all the terms and conditions, including your obligations, the franchisor’s support, and the duration of the franchise term​​.

9. Training and Support

  • Participate in comprehensive training programs covering operational procedures, marketing, sales, and the Row House fitness philosophy.
  • Take advantage of the support provided by Row House in areas like site selection, studio design, staff recruitment, and pre-launch marketing​​.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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