Risk Score
Pending analysis
Investment Range
$365,855 - $586,805
Franchise Fee
$35,000
Total US Locations
66
Business Summary
Row House Franchising LLC offers the right to develop, own, and operate a fitness studio as part of the Row House system. These studios provide indoor rowing and other specialized exercise classes using designated equipment. Row House Studios deliver live instructional group and individual classes that accommodate various skill levels. Each studio operates under a comprehensive system that includes specific designs, operational procedures, customer service standards, management controls, training, and marketing programs.
Corporate History
Row House Franchising LLC was formed in Virginia on May 17, 2024, and began offering Row House-branded studio franchises in August 2024. The current franchisor acquired the assets of the Row House franchise system from its predecessor, Row House Franchise SPV, LLC (RHF SPV), which was formed in Delaware in March 2023 and offered franchises from April 2023 to May 2024. Before that, Row House Franchise, LLC (RHF), formed in Delaware in December 2017, offered franchises for Studios from December 2017 until March 2023. The Row House system therefore began franchising in December 2017 under RHF.
Financial Overview
Investment Range
$365,855 - $586,805
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$285,450
Equipment Costs (High)
$455,700
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Purvelo Franchising, LLC, which guarantees Row House Franchising LLC's duties and obligations, indicate substantial doubt about Purvelo's ability to continue as a going concern. Purvelo has experienced recurring losses from operations and negative cash flow from operations, accumulating a members' deficit of $40,040 as of December 31, 2023. While the managing member (Parent) contributed $263,024 to Purvelo in 2024 and management plans to reduce operating expenses and anticipates increased revenues, additional liabilities from guarantee agreements with other affiliated franchisor entities could further impact its ability to sustain operations.
Financing Details
Row House Franchising LLC does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any notes, leases, or other obligations for franchisees. While Row House Franchising LLC may assist franchisees in obtaining working capital through referrals to other sources, it does not provide any direct financial assistance itself.
Performance Metrics
Total US Locations
66
Franchised Units
65
Corporate Units
1
Avg Square Footage
2,000
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
8
Litigation Summary
Row House Franchising LLC states it has no litigation information required to be disclosed. However, its parent, predecessors, and affiliates have been involved in 8 litigation cases. These cases primarily involve state regulatory actions by securities commissions in Maryland, Illinois, Virginia, California, and Washington against affiliates such as 360 Painting, LLC, Pro-Lift Doors Franchise, LLC, and Paul Flick (CEO of Row House's parent company). The allegations include offering and selling franchises without state registration, using Franchise Disclosure Documents that failed to disclose required information (such as other litigation), failing to obtain signed state-specific amendments to franchise agreements, and making misrepresentations. Most of these cases resulted in settlements, consent orders, or assurances of voluntary compliance, with penalties and some rescission offers. For example, a November 2021 consent order in California resulted in $72,500 in penalties and Paul Flick being barred from offering or selling franchises in California for 36 months. Several consent orders were issued in 2022 and 2023 for disclosure failures, including a $50,000 civil monetary penalty in Maryland in April 2023. Additionally, there were two older breach of contract lawsuits (2019 and 2011) that were settled.
Bankruptcy History
Row House Franchising LLC has no bankruptcy history to report for itself or its management.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Row House franchisees must provide written notice of their intent to renew 6 to 12 months before the current term expires. They must sign the franchisor's then-current franchise agreement, which may have different terms and fees. Franchisees are required to refurbish or renovate their studio to meet the current image and specifications, including updating and replacing equipment. They must execute a general release of claims against the franchisor and its affiliates, ensure their Operating Principal and Key Manager complete all current training requirements, and secure the right from their landlord to continue operating at the site. Franchisees must also have substantially complied with the franchise agreement throughout the term, have no existing defaults, and pay a successor fee of $10,000.
Training & Support Program
Franchisor Assistance
Row House Franchising LLC provides extensive support to its franchisees. Before opening, the franchisor assists with site selection, provides access to its confidential Operations Manual, offers specifications for studio layout and design, and provides a list of approved suppliers for equipment and signage. Row House also consults on establishing pre-sales activities and grand opening support programs, and approves architectural plans and general contractors. For ongoing operations, the franchisor specifies and approves equipment and suppliers, offers additional training upon request (for a fee), and provides continuous advisory assistance. Row House also maintains and administers a marketing fund, reviews and approves local advertising materials, and may establish franchisee marketing cooperatives. Compliance monitoring includes inspections, field visits, and mystery shoppers. Access to online manuals and updates is also provided.
Initial Training Hours
23
Training Location
Corporate headquarters in Charlottesville, Virginia, or another location designated by us, or at a location to complete training virtually.
Ongoing Support
After opening, Row House Franchising LLC provides ongoing support to its franchisees. This includes specifying and approving certain equipment and suppliers, and offering additional training upon request, though a fee may apply. The franchisor may also require franchisees and their management personnel to attend up to five days of additional training each year without a training fee. Row House provides continuing advisory assistance and information for studio development and operation, and it maintains and administers the Marketing Fund. The franchisor reviews and approves local advertising materials and may establish regional marketing cooperatives. Compliance is monitored through methods such as inspections, field service visits, surveillance cameras, member comments, surveys, and secret shopper reports. Franchisees also have online access to the Operations Manual, which is periodically updated.
Franchise Requirements
Ideal Candidate Profile
Row House Franchising LLC seeks financially and operationally qualified individuals or entities with strong business acumen and overall business and operational experience. Ideal candidates must ensure their studio is always under the direct, 'on-premises,' full-time supervision of a Key Manager, who can be the owner or another approved individual. This Key Manager must meet the franchisor's minimum standards and satisfactorily complete the initial training program before the studio opens. All owners and principals of a franchisee entity are required to sign a personal guarantee, and the Operating Principal must be directly involved in the day-to-day operation and management of the studio.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
exclusive
Territory Size Requirements
Row House franchise territories are generally defined by a maximum of 50,000 people within an approximate two-mile radius around the studio's approved location. In major metropolitan downtown areas, the territory may be smaller, ranging from a two-block to two-mile radius, but still containing up to 50,000 people. The boundaries can be based on zip codes, streets, landmarks, or county lines and may vary based on specific location and demographics. The franchisor uses territory mapping software or publicly available population information to define these areas.
Staffing Notes
Row House Studios are required to have at least one Authorized Row House Instructor capable of providing rowing instruction and other approved services on-site at all times when approved services are offered. This instructor must complete initial and online training programs. Each studio must also have an Operating Principal with authority over all business decisions, and a Key Manager for day-to-day operations (who may be the Operating Principal). Both must be directly involved and provide full-time, on-premises supervision. Franchisees are solely responsible for hiring, disciplining, and managing all studio personnel, including instructors, and for ensuring their compliance with all labor laws and franchisor training requirements. Staff are expected to exhibit enthusiasm, cleanliness, neatness, friendliness, honesty, and loyalty to promote customer satisfaction and brand goodwill.