In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Row House franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Row House franchise, based on Items 5 and 6 of the company’s 2022 FDD

Section III – Number of franchised and company-owned Row House outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Row House franchise opportunity

Section V – Presentation and analysis of Row House’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• average gross revenue for each calendar month comprising the 2021 calendar year for the franchised Row House studios that were: (i) owned and operated by a system franchisee over the entirety of the measurement period; and (ii) operating for at least 12 months beyond their soft opening date as of the end of the calendar month at issue (the “Disclosed Studios”)

• average gross revenue for each calendar month comprising the 2021 calendar year for the Disclosed Studios that scheduled a minimum of 120 classes per calendar month in accordance with Row House’s recommended standards and specifications (the “Fully Scheduled Disclosed Studios”)

• average gross revenue for each calendar month comprising the 2021 calendar year for the Disclosed Studios that scheduled less than 120 classes per calendar month, which does not follow Row House’s recommended standards and specifications (the “Minimally Scheduled Disclosed Studios”)

Section VI – Key ratios, comparables, computations, and analyses for the Row House franchise opportunity (exclusive content for Platinum subscribers)

Section I – Row House Franchise Costs

• Row House franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $60,000
• Travel and Living Expenses While Training:  $500 to $3,000
• Real Estate/Lease:  $22,500 to $46,500
• Net Leasehold Improvements:  $52,400 to $200,000
• Signage:  $10,000 to $25,000
• Insurance:  $1,000 to $2,500
• Payments for Fitness Equipment and Other FFE Package – 3 Months:  $3,700 to $14,300
• Retail Inventory Package for Presale and Soft Opening:  $12,000
• Computer System Component(s) and Software Setup:  $6,500
• Audio/Visual Equipment:  $47,000
• Initial Marketing Spend:  $15,000 to $20,000
• Authorized Coach Training:  $5,000
• Technology Fee – 4 Months (1 month prior to opening and 3 months) and Music Licensing Fee (3 months):  $1,516
• Additional Funds – First 3 Months:  $10,000 to $40,000
• Total Estimated Row House Franchise Costs:  $247,116 to $483,316

Section II – Row House’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Row House’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $60,000
• Royalty:  7% of Gross Sales
• Brand Development Fund Contributions:  2% of Gross Sales
• Local Advertising Requirement:  $2,000 per month

Section III – Number of Franchised and Company-Owned Row House Outlets

Franchised

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  54
• Net Change:  +54

2020

• Outlets at the Start of the Year:  54
• Outlets at the End of the Year:  69
• Net Change:  +15

2021

• Outlets at the Start of the Year:  69
• Outlets at the End of the Year:  81
• Net Change:  +12

Company-Owned

2019

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  0
• Net Change:  -3

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  17
• Net Change:  +17

2021

• Outlets at the Start of the Year:  17
• Outlets at the End of the Year:  10
• Net Change:  -7

Section IV – News Updates on the Row House Franchise

• Row House Debuts New Class Formats “Strength” and “Intervals”

• Row House Monroe Offers a Low Impact, Full-Body Workout

• Row House Is More Than Your Everyday Workout

• Xponential Fitness Wins 2022 Franchise Times Dealmakers of the Year Award

• Row House Did Not Rank on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Row House Franchise (Item 19, 2022 FDD)

• In Part 1 of this Item, Row House discloses the average monthly Gross Revenue generated in each calendar month comprising the 2021 calendar year (each, a “Calendar Month” and collectively, the “Measurement Period”) amongst the franchised Studios that were: (i) owned and operated by a System franchisee over the entirety of the Measurement Period; and (ii) operating for at least 12 months beyond their soft opening date as of the end of that Calendar Month (the “Disclosed Studios”).

• In Part 1, the Applicable Subset for a given Calendar Month excludes any Studio that was not open for at least 12 months beyond its soft opening date as of the end of that Calendar Month (the “Excluded Studios”).

• In Part 2 of this Item, Row House discloses two different charts. The first chart (Part 2A) discloses the average monthly Gross Revenue generated during the Measurement Period amongst Disclosed Studios that scheduled a minimum of 120 classes per Calendar Month in accordance with Row House’s recommended standards and specifications (the “Fully Scheduled Disclosed Studios”).

• The second chart (Part 2B) discloses the average monthly Gross Revenue generated during the Measurement Period amongst Disclosed Studios that scheduled less than 120 classes per Calendar Month, which does not follow Row House’s recommended standards and specifications (the “Minimally Scheduled Disclosed Studios”). The Excluded Studios are excluded from Part 2 of this Item 19.

Part 1 – Average Gross Revenue Amongst the Applicable Subset of All Disclosed Studios for Each Calendar Month Comprising the Measurement Period

• January 2021 (37 Studios):  $14,291
• February 2021 (42 Studios):  $14,617
• March 2021 (43 Studios):  $16,694
• April 2021 (43 Studios):  $17,729
• May 2021 (45 Studios):  $20,643
• June 2021 (50 Studios):  $22,345
• July 2021 (50 Studios):  $22,697
• August 2021 (51 Studios):  $21,977
• September 2021 (52 Studios):  $21,371
• October 2021 (55 Studios):  $21,444
• November 2021 (61 Studios):  $22,818
• December 2021 (62 Studios):  $20,097

• Total Annual Gross Revenue (January 2021 to December 2021):  $236,723
• Average Monthly Gross Revenue (January 2021 to December 2021):  $19,727

Part 2A – Average Gross Revenue Amongst the Applicable Subset of All Fully Scheduled Disclosed Studios for Each Calendar Month Comprising the Measurement Period

• January 2021 (20 Studios):  $18,997
• February 2021 (16 Studios):  $20,143
• March 2021 (27 Studios):  $21,731
• April 2021 (24 Studios):  $23,361
• May 2021 (24 Studios):  $26,832
• June 2021 (30 Studios):  $26,912
• July 2021 (24 Studios):  $29,088
• August 2021 (28 Studios):  $27,545
• September 2021 (25 Studios):  $28,012
• October 2021 (23 Studios):  $28,736
• November 2021 (23 Studios):  $32,670
• December 2021 (22 Studios):  $29,752

• Total Annual Gross Revenue (January 2021 to December 2021):  $313,779
• Average Monthly Gross Revenue (January 2021 to December 2021):  $26,148

Part 2B – Average Gross Revenue Amongst the Applicable Subset of All Minimally Scheduled Disclosed Studios for Each Calendar Month Comprising the Measurement Period

• January 2021 (17 Studios):  $8,755
• February 2021 (26 Studios):  $11,217
• March 2021 (16 Studios):  $8,194
• April 2021 (19 Studios):  $10,614
• May 2021 (21 Studios):  $13,570
• June 2021 (20 Studios):  $15,496
• July 2021 (26 Studios):  $16,798
• August 2021 (23 Studios):  $15,199
• September 2021 (27 Studios):  $15,222
• October 2021 (32 Studios):  $16,203
• November 2021 (38 Studios):  $16,854
• December 2021 (40 Studios):  $14,787

• Total Annual Gross Revenue (January 2021 to December 2021):  $162,909
• Average Monthly Gross Revenue (January 2021 to December 2021):  $13,576

• The term “Gross Revenue” means the total revenue generated by a given Disclosed Studio over the Measurement Period, including all revenue generated from the sale and provision of any and all Approved Services at, from, or otherwise through, that Studio.

• The term “Gross Revenue” (i) excludes sales tax (that Studio owner must pay directly to the appropriate taxing authority), and (ii) does not account for revenue the Disclosed Studios may have generated by providing the Teacher Training Program.

• The “Average Gross Revenue” figure was calculated by taking the sum of all the Gross Revenue generated by the Disclosed Studios and dividing that amount by the number of Disclosed Studios in the appropriate subset at issue.

• This Item does not contain any information related to the operating costs and expenses that are incurred in connection with the establishment and/or operation of a Franchised Business. Operating costs and expenses vary from business to business and will include, among other things, the royalty and other fees you are required to pay to Row House and/or its Approved Supplier(s) in connection with your Franchised Business.

• The figures provided in this Item do not account for amortization, depreciation, interest on debt services, and/or any tax liability.

Section VI – Row House Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️