From the filed FDD — automated extraction, check the source
2020 FDD · 5+ years old — too old to rate
SBA-eligible · directory code S3037 since 2018
Row House
Indoor cycling & rowing · parent company: not identified
Row House is a boutique fitness franchise offering group indoor rowing classes designed as low-impact, full-body workouts. A franchisee operates a studio outfitted with rowing machines, employing coaches and selling class packages and memberships to fitness consumers.
Row House went from 2 → 54 units over 2017–2019 — too small a starting base for a meaningful percentage per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Filing too old to rate
The newest FDD we hold for this brand is from 2020, more than two years old. Franchise systems change a lot in that time, so we don't rate it until we have a current filing. For context, SBA loans to its franchisees approved FY2018–2020 charged off more often than franchise loans of the same years (5 vs about 3.1 expected, 1.6×; on this few loans a gap this size could still be partly chance).
Exit rate · fiscal 2019
No franchised base
no franchised outlets at the start of the year
Cost to open
$277K–$500K
Item 7 total investment range
SBA loan losses · vs same-year loans
1.6×
5 of 30 charged off vs ~3.1 expected
Market density · California
Typical density
14% denser than the national average
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Data as of 2026-10-29. Figures come from Row House's public FDD filings (latest: MN 2020, extracted 2026-07-23) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
What each source says
FDD record · SBA loans · model · auditor
We don't rate on an FDD more than two years old; the loan record and model are shown as context until a current filing arrives.
FDD record · Item 20
Filing too old
Latest FDD we hold is from 2020.
SBA loans · vs same-year loans
More defaults than expected (could be chance) (1.6×)
5 charge-offs among 30 resolved loans approved FY2018–2020; about 3.1 expected.
Modeled risk
Not scored
Too little evidence for the model.
Auditor opinion · Item 21
Clean opinion
Unqualified audit, 2020 FDD. Says nothing about franchisee results.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness · shown, not counted in the verdict
Systemwide units
2017–2019
Survival record
FDD Item 20 · outlet status by year
The franchisor reported no franchised outlets at the start of fiscal 2019, so there is no franchised exit rate to report; the outlet tables below show what it does operate.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2017 | 2018 | 2019 |
|---|---|---|---|
| Outlets at start | 2 | 2 | 3 |
| Opened | 0 | 0 | 54 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 2 | 3 | 54 |
| Net change | 0 | +1 | +51 |
The franchisor's own finances
FDD ITEM 21 · AUDITED STATEMENTS · 2020 FDD
Deloitte & Touche LLP gave an unmodified (clean) opinion on the statements in the 2020 FDD; revenue rose 875% from FY2018 to FY2019 and it reported a net loss in every year shown (FY2018–FY2019).
This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.
Audit opinion
Unmodified (clean) opinion
Deloitte & Touche LLP
Revenue · FY2019
$7.8M
extracted · not cross-checked
Net income · FY2019
−$5.8M
extracted · not cross-checked
Where FY2019 revenue came from
17% royalties
initial-fee share not extracted
Show the statement figures ↓Hide the evidence ↑
| Fiscal year | FY2018 | FY2019 |
|---|---|---|
| Total revenue | $801Kextracted · not cross-checked | $7.8Mextracted · not cross-checked |
| Royalty revenue | $154Kextracted · not cross-checked | $1.4Mextracted · not cross-checked |
| Net income (loss) | −$6.1Mextracted · not cross-checked | −$5.8Mextracted · not cross-checked |
The lender's view
SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years
Banks have made 55 SBA-backed loans to Row House franchisees since 2018. Of the 30 approved FY2018–2020 that have resolved, 5 charged off — where about 3.1 would be expected for franchise loans made in the same years. That is 1.6× the expected rate: these loans defaulted far more often than comparable franchise loans (a gap this size on this many loans could be chance).
All-time, 5 of 33 resolved loans charged off (15.2%). That raw figure mixes every approval year since 2018 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score. 40% of the brand's loans have not resolved yet.
1.6×
5 of 30 resolved (FY2018–2020) vs ~3.1 expected
15.2%
5 of 33 resolved, every approval year
—
charged-off $ ÷ approved $, defaulted loans
$343,668
what recent franchisees borrowed
—
shown with 10+ defaults
7 vs 16
distinct banks — fewer than FY16–20 (loan volume and SBA name coding affect this)
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO ROW HOUSE BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
The owner's side of the deal
FDD × federal loan record
Who finances it
Stearns Bank National Association
14.5% of this brand's loans
That lender charges off 12.2% of its resolved SBA loans to other franchise brands in the FOIA file, vs 14.8% nationally — a read on that lender's portfolio mix, not a finding about the bank.
Who buys it
74.5%
borrowers with no other franchise SBA loan on record
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators have charged off less often than brands sold mostly to newcomers (see methodology).
Does experience help here?
Not enough resolved loans to split
Computed from 55 SBA 7(a)/504 loans matched to Row House by SBA franchise code in the SBA FOIA file. Debt service assumes level amortization at the average disclosed term and rate. Owner-level splits rely on borrower-name matching and may misclassify. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $60,000 franchise fee (Item 5) and a total investment of $277K–$500K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$277K–$500K
all-in investment range
Franchise fee (Item 5)
$60,000
upfront, one-time
Royalty (Item 6)
7%
of sales, ongoing
Starts at the Item 19 average of $704K from Row House’s latest FDD. Read which units built that figure, then check it with current and former owners.
Royalty you'd pay / yr
$49K
7% of sales, before profit
Over a 10-yr term
$490K
royalties alone, excl. ad fund
This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on rent, staff pay, equipment payments, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Row House with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2020 FDD
This filing makes an Item 19 earnings claim; we have not yet read how it is built. Open Item 19 and check which units it covers, which it leaves out, and whether it shows costs.
Show the basis ↓Hide the evidence ↑
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for Row House. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
8 questions to ask a Row House franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These questions come from what Row House has disclosed. Each one carries the number it came from, so you can check the answer against the record.
- 01
SBA loans to Row House franchisees approved 2018–2020 defaulted far more often than franchise loans made in the same years: 5 charge-offs among 30 resolved loans, where about 3.1 would be expected (1.6×). Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of how these loans ended, from public federal records matched by SBA franchise code — independent of anything the franchisor discloses — compared with franchise loans made in the same years. A charge-off is a loan outcome, not proof the business closed.
SBA 7(a)/504 loan record, seasoned loans FY2018–FY2020 · 1.6× of same-vintage franchise loans
- 02
Item 7 says the low end to open is $277K; the average recent SBA loan to Row House franchisees was $344K. What did you actually spend to open, all in — and did your loan cover anything beyond the build-out?
Lenders size loans to the project they finance. If owners say they spent near the loan figure rather than the Item 7 floor, budget from what they spent.
FDD Item 7 vs SBA approvals FY2020+
- 03
You pay 7.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 04
Row House makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2020
- 05
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 06
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 07
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 08
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
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A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Row House’s numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Row House franchise questions, answered from the filings
How much does a Row House franchise cost?
Per Row House's 2020 FDD, buying in requires an initial franchise fee of $60,000 (Item 5) and a total initial investment of $277K–$500K (Item 7).
What royalty does Row House charge?
Row House charges an ongoing royalty of 7.0% of gross sales, per Item 6 of its 2020 FDD.
Does Row House disclose earnings (Item 19)?
Yes — Row House makes a financial performance representation in Item 19 of its 2020 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for Row House franchises default?
SBA loans to Row House franchisees approved 2018–2020 defaulted far more often than franchise loans made in the same years: 5 charge-offs among 30 resolved loans, where about 3.1 would be expected (1.6×). All-time, 5 of 33 resolved loans since 2018 charged off (15.2%); that raw figure mixes every approval year, so we compare with same-year loans instead. A charge-off is a loan loss, not proof the business closed. Source: public SBA 7(a)/504 FOIA data.