Irvine, California-based Row House, with 60 units, claims to be the largest franchised rowing concept in terms of the number of studios it operates in 19 states and the District of Columbia.
Fresh off its acquisition of indoor rowing concept Row House from Xponential Fitness, Extraordinary Brands has plans to nearly double its portfolio of workout brands.
“We are looking to acquire two more wellness brands and if it all goes the way we hope, we should be able to make those announcements in the coming months,” Extraordinary President R.J. Krone said. “Right now, our priority is to work with Row House and our other two brands to help them grow.”
Extraordinary Brands, which was formed by Paul Flick when he acquired indoor cycling concept Purvelo Cycle in 2022, also owns Eat the Frog Fitness, another group fitness brand that offers around-the-clock access to the workout studio with virtual and coach-led small group classes. Flick formed Premium Service Brands in 2006, which now owns nine home service brands.
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The company’s website lists nine Eat the Frog studios in eight states and four Purvelo Cycle locations in four states.
Irvine, California-based Row House, with 60 units, claims to be the largest franchised rowing concept in terms of the number of studios it operates in 19 states and the District of Columbia. The concept offers personalized performance metrics, resistance training, rowing and mobility exercises to build endurance and strength for all levels.
Extraordinary Brands President R.J. Krone
The investment range for a traditional studio is $328,295 to $490,695, according to the company’s franchise disclosure document.
Extraordinary took ownership of 70 percent of Row House, while Row House’s founders retain 30 percent control, Krone confirmed.
Prior to becoming the president of Extraordinary Brands in December, Krone was vice president of studios and franchising operations for Pvolve, another boutique fitness concept. He said there are no immediate plans to make any executive changes at Row House.
Husband-and-wife team Eric Von Frohlich and Debra Strougo founded Row House in 2014. It had as many as 82 units open in 2022 before Xponential positioned the brand for sale by closing under-performing locations last year.
“They did some clean up on Row House to be able to divest,” Krone said. He said the deal with Xponential included signed agreements to open two more Row House locations by January 2025. It also included over 300 franchises sold.
Xponential, a publicly traded company, indefinity suspended CEO Adam Geisler earlier this month in the wake of an expanded federal investigation that now includes the United States Attorney’s Office for the Central District of California. The company is facing multiple class action lawsuits alleging it defrauded its investors by making “materially false and misleading statements and omissions regarding Xponential’s business, financial results and prospects.”
Xponential, which acquired Row House in 2017, sold Stride Fitness in February and said on its most recent earnings call it had 3,156 studios operating globally. The deals to offload Stride and Row House would appear to signify the company’s desire to streamline its portfolio as it embarks on its restructuring plan which began in late 2023 to reduce costs.
Xponential declined to comment.
Krone said regardless of Xponential’s legal issues, the Row House deal represents a win for all sides, including the franchisees.
“I just got off a conference call with the franchisees yesterday and they obviously had a lot of questions like, ‘What happens next?’ and ‘What are the plans to help the company and their business grow?’” Krone said. “I assured them that Row House is a great exercise concept and that it all comes down to how we execute and growing together responsibly.”
