How to Finance a Row House Franchise: Rowing Studio Costs
By Marc Cornella
A Row House franchise loan pays for something fairly specific: a boutique fitness studio built around a room full of indoor rowing machines, a strength floor and a membership sales team. The brand’s own franchising materials put the estimated total investment in the mid-six figures, so most buyers combine personal cash with an SBA or conventional loan to open the doors.
This article explains what the franchisor discloses about costs and owner requirements, how the SBA Franchise Directory listing affects your options, and how lenders look at a rowing studio.
US Professional Funding is not affiliated with, sponsored by or endorsed by Row House; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchising pages can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant before you sign.
Row House Franchise Loan at a Glance
- Estimated total investment: $370,855 to $536,805, according to the franchisor’s franchising page, which cites Item 7 of the 2024 Row House FDD.
- Minimum cash required: $100,000, per the franchisor.
- Net worth required: $500,000, per the franchisor.
- Initial franchise fee, royalty and marketing fund: not published on the franchising page; confirm them in Items 5 and 6 of the current FDD.
- System size: the franchisor reports more than 40 studios open across the nation.
- Founded: in New York City in 2014.
- Business model: recurring membership revenue from group rowing classes.
- SBA Franchise Directory: listed under code S3037, with notes covering lease addendums, lien position and real estate purchase options.
What Is Row House?
Row House was established in New York City in 2014 as a boutique fitness concept centered on indoor rowing. Classes are coach-led group workouts on rowing machines, often paired with strength and core work on the floor. The workout is promoted as full-body and low-impact, which lets the brand appeal to a broad range of ages and fitness levels rather than only to experienced athletes.
The franchisor describes the brand as the largest network of indoor-rowing studios in the country and reports more than 40 studios open nationwide. The business runs on a membership model: members pay recurring monthly dues for class access, with introductory offers and class packs used to bring new people in. The franchisor’s support covers site selection, build-out, staffing, marketing and membership sales, along with ongoing training and webinars.
The brand has changed ownership at the franchisor level in recent years, so read the most recent FDD closely, especially Items 1, 20 and 21, rather than relying on older marketing materials.
Why lenders view Row House the way they do. Boutique studios are cash-flow businesses with modest hard collateral. Lenders like recurring dues and a franchisor playbook, but know results depend on presale success and member retention, so a Row House franchise loan is underwritten mainly on the borrower, the projections and the lease.
Row House Franchise Costs
The franchisor’s franchising page lists a total investment of $370,855 to $536,805 and directs readers to Item 7 of the 2024 Row House FDD for the explanatory notes and details. The page does not break out the line items, so use the FDD itself for each range. The categories below are the ones a rowing studio budget typically includes.
Initial franchise fee. The fee is set out in Item 5 of the FDD. The franchising page does not publish the amount, so confirm it, along with any discount for multi-studio commitments, in the current disclosure document.
Lease and build-out. Row House studios are typically in retail strip centers and similar storefront space. The build-out covers the class room, flooring, lighting and sound, a reception and retail area, locker rooms or cubbies, and restrooms. Leasehold improvements are usually the largest single piece of the budget, and the actual cost depends on the condition of the space and any landlord tenant improvement allowance.
Equipment. The core package is the bank of indoor rowing machines, plus strength equipment for floor work, audio-visual systems, and the technology used for booking and performance tracking.
Opening costs and working capital. Expect deposits, insurance, professional fees, presale marketing, retail inventory, hiring and additional funds to cover payroll and rent while membership builds.
Total investment. Item 7 of the FDD lists these categories with low and high estimates that add up to the $370,855 to $536,805 total. A typical Item 7 table for a studio of this type includes:
- Initial franchise fee
- Leasehold improvements and construction
- Rowing machines, strength equipment and furniture
- Audio-visual, computer and point-of-sale systems
- Signage and decor
- Presale and grand opening marketing
- Security deposits, utility deposits and business licenses
- Opening inventory and supplies
- Additional funds for the initial operating period
When you size a Row House franchise loan, start from the Item 7 table in the current FDD and replace its assumptions with your landlord’s actual rent, tenant improvement allowance and contractor bids.
Ongoing Fees and How They Affect Your Loan
The franchising page does not publish the royalty or marketing fund contribution. Item 6 of the FDD lists every recurring fee, which for a boutique fitness franchise usually includes a royalty on gross sales, a brand or marketing fund contribution, a required local advertising spend, technology and software fees, and transfer and renewal fees.
Royalty and marketing fund. Because these are typically percentages of revenue, they rise with sales and come off the top before rent, payroll and debt service.
Refresh obligations. Check the franchise agreement for requirements to replace equipment or update the studio’s look.
How lenders factor these costs in. Lenders subtract royalties, fund contributions, rent, payroll and software from projected membership revenue, then test whether what remains covers the loan payment with a cushion. Our SBA loan calculator can help you estimate payments for planning; results are not an offer or approval.
Franchisor Requirements for New Owners
The franchisor’s franchising page lists two financial thresholds:
- Minimum cash required: $100,000
- Net worth required: $500,000
The franchisor also looks for partners who are passionate about health and wellness, driven to succeed and able to lead a team.
The approval process. Candidates typically submit an inquiry, talk with the development team, review the FDD and complete a financial and background review. Meeting the thresholds does not guarantee approval.
How the thresholds connect to financing. The cash requirement typically funds part of the equity injection a lender requires, while net worth shows lenders that you have resources beyond the studio. Lenders also want to see reserves left after closing, so plan your liquidity with both the franchisor and the lender in mind.
Ways to Own a Row House
Opening a new studio. A new studio needs financing for the franchise fee, build-out, equipment, presale marketing and working capital. Lenders underwrite it on projections and the owner’s strength. See our overview of fitness center start-up financing.
Buying an existing studio. Resale studios come with members, staff and a sales history, so lenders can underwrite actual results. The purchase still needs franchisor transfer approval, and the buyer typically signs the then-current franchise agreement. Our guide to buying an existing gym covers due diligence on member counts, churn and lease terms.
Financing Options for a Row House Franchise
SBA 7(a) loans. The SBA 7(a) loan program is often the primary route for a franchise studio because it can combine the franchise fee, build-out, equipment and working capital in one loan with longer repayment than many conventional options. Row House is on the SBA Franchise Directory, which clears the brand for SBA review.
SBA 504 loans. The SBA 504 program finances owner-occupied real estate and long-lived fixed assets. Most studios lease space, so 504 rarely fits a single studio, but an owner who buys the building can consider it.
Conventional term loans. Borrowers with strong liquidity, other business income or existing studios may qualify for a conventional business loan, which can move with less paperwork but may ask for more equity or collateral.
Equipment financing. Indoor rowing machines, strength racks, dumbbells, benches, heart-rate and performance displays, and sound systems can be financed separately so loan payments line up with the life of the equipment. Learn more about fitness equipment financing and leasing.
Working capital and lines of credit. Studios often run lean during presale and the early months, and membership can soften seasonally. A reserve or line of credit helps cover payroll and rent through that ramp. See our fitness center working capital options.
Seller financing on resales. When buying an existing studio, a seller may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules may limit how it is structured, so raise it with your lender early.
SBA Loans for Row House Franchisees
SBA lending for franchises runs through the SBA Franchise Directory, a list of brands whose franchise documents have been reviewed for SBA eligibility. A listing does not approve any borrower; each loan is still underwritten on its own merits.
Row House is listed on the SBA Franchise Directory under code S3037. The listing carries three notes. In plain English:
- Lease addendum and real estate collateral: if real estate where the studio is located will secure the SBA-guaranteed loan, the franchisor’s addendum to lease may not be executed. If you or an affiliate own the property and pledge it, the lender will need that addendum left out.
- Lien position: the lender or certified development company must obtain the correct lien position on all collateral as required by SBA rules. Expect the lender to file liens on studio equipment and other business assets and to check for any competing liens.
- Purchase option on owned real estate: the franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate and taken as collateral for the SBA loan.
For most leased studios, these notes change little; they matter most if you own the building.
SBA application tips. Give your lender the current FDD and franchise agreement early, prepare a business plan with presale assumptions, and have your personal financial statement, tax returns and source-of-equity documents ready. The SBA 7(a) program maximum is currently $5 million, though program rules can change, and a single studio typically needs well under that. For more on gym-specific SBA lending, read our guide to SBA loans for gyms.
How Lenders Evaluate a Row House Deal
Personal credit and financial history. Expect a review of your credit, tax returns and personal financial statement, plus a personal guarantee.
Net worth and liquidity. The franchisor’s $100,000 cash and $500,000 net worth thresholds are a starting point. Lenders also look at reserves after closing.
Industry and management experience. Experience managing teams, selling memberships or running a service business helps. Lenders also value a plan to hire an experienced studio manager and coaches if the owner will not be on site daily.
Business plan and projections. Projections for a rowing studio should model presale memberships, a realistic ramp to the studio’s class capacity, member churn, introductory offer conversion, coach payroll per class and seasonal patterns. Lenders discount plans that assume the studio fills immediately.
The FDD and franchise agreement. Lenders read Item 7 for costs, Item 6 for fees, Item 17 for term, renewal and transfer, and Item 21 for the franchisor’s financial health. Given the recent change of franchisor ownership, expect questions about Items 1 and 20. Our guide to how lenders read a franchise disclosure document explains what to flag.
Site and lease. The lease term should run at least as long as the loan, and lenders review rent, parking and visibility.
Historical financials for resales. For an existing studio, expect to provide several years of profit and loss statements, membership reports and tax returns. Lenders compare active members and monthly recurring revenue against the books.
Rowing Equipment and Studio Technology
The rowing machines are the heart of every studio and take a beating in back-to-back classes.
Upfront package. The franchisor specifies the opening equipment, typically a bank of rowers plus floor equipment and class displays. Equipment loans or leases spread that cost over its useful life.
Maintenance and replacement. Seats, straps and monitors wear out; budget for service and ask whether the franchise agreement sets a replacement cycle.
Technology. Booking software, member apps and performance screens often carry monthly fees, so find out which systems are required.
Multi-Unit Growth and Development Agreements
Boutique fitness brands often encourage owners to build clusters of studios in a market so that marketing, coaches and management can be shared.
Development schedules. If you sign a development commitment, the agreement will set dates by which each studio must open. Missing them can cost you territory rights, so financing should be lined up before each deadline.
Financing the second and third studio. Once your first studio has a track record, lenders can underwrite the next one partly on its cash flow. Each new studio still needs its own budget, lease and equity contribution. Our overview of fitness center acquisition financing explains how growth deals are structured.
Real-World Scenarios
A first-time owner opening a new studio. A former corporate sales manager meets the franchisor’s cash and net worth thresholds, signs a lease in a busy retail center and uses an SBA 7(a) loan for the build-out, rowers and working capital. Her lender focuses on her presale plan and her studio manager hire.
A buyer taking over an existing studio. A local fitness coach buys a studio from a relocating owner. The lender reviews membership reports and financials, the franchisor approves the transfer, and the seller carries a small subordinate note.
An owner who owns the building. An investor buys the retail building where his studio will operate and pledges it as collateral. The SBA directory note means the franchisor’s lease addendum is left out and the franchisor cannot enforce a purchase option on that property.
Common Mistakes to Avoid
- Relying on the franchising page alone instead of reading Items 5, 6 and 7 in the current FDD
- Underestimating presale marketing and the time it takes to reach class capacity
- Spending all available cash on the build-out and leaving no working capital
- Signing a lease shorter than the loan term
- Ignoring equipment maintenance and replacement in projections
- Overlooking the SBA directory notes when you plan to pledge real estate
For more pitfalls specific to gyms and studios, read the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your Row House Franchise
Step 1: Confirm you meet the franchisor’s requirements. Verify the cash and net worth thresholds and talk with the franchise development team.
Step 2: Review the current FDD with advisors. Focus on Items 5, 6, 7, 17, 20 and 21 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Learn how lenders will view your experience and liquidity before you commit to a site.
Step 4: Secure a site and negotiate the lease. Get a lease term that matches your loan and push for a tenant improvement allowance.
Step 5: Build your business plan. Use realistic presale, ramp and churn assumptions, and include contractor bids and equipment quotes.
Step 6: Apply for financing. Submit your loan package with the FDD, franchise agreement, lease, projections and personal financial documents.
Step 7: Close and launch presale. Fund your reserve and start selling memberships during construction.
Row House Franchise Loan FAQs
How much does a Row House franchise cost?
The franchisor’s franchising page lists an estimated total investment of $370,855 to $536,805, citing Item 7 of the 2024 Row House FDD. The final cost depends on rent, build-out and local conditions.
What is the Row House franchise fee?
The franchising page does not publish the initial franchise fee. Item 5 of the current FDD lists it, along with any multi-studio pricing.
What royalty does Row House charge?
The royalty and marketing fund contribution are disclosed in Item 6 of the FDD rather than on the franchising page. Review them carefully because they come off gross revenue before debt service.
How much cash do I need?
The franchisor lists a minimum of $100,000 in cash and a net worth of $500,000. Lenders may also expect reserves left after closing.
Can I get an SBA loan for a Row House franchise?
Row House is on the SBA Franchise Directory under code S3037, so eligible borrowers can apply for SBA 7(a) and 504 financing. Each loan is still subject to lender approval.
Can I buy an existing Row House studio?
Yes, with franchisor approval of the transfer. Lenders will review the studio’s membership data and financial history, and a seller may carry part of the price.
Can a first-time business owner get a Row House franchise loan?
Yes, if the franchisor approves you and you meet lender requirements. A strong management plan, sales or leadership experience and solid liquidity help.
Does Row House offer financing?
Check Item 10 of the current FDD for any financing the franchisor offers. Most owners arrange their own loans with outside lenders.
How long is the franchise term?
Item 17 of the FDD sets out the term, renewal and transfer conditions. Lenders compare the remaining term with the proposed loan length.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether it includes financial performance representations, and base your projections on your own market research.
Final Thoughts
A Row House studio combines a focused equipment package with a membership sales model, and the right Row House franchise loan accounts for both. Read the current FDD carefully, plan for presale and ramp-up, and use the SBA listing to your advantage.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing solutions.
