Extraordinary Brands acquires Row House from Xponential Fitness | Franchise mergers and acquisitions

On the heels of acquiring the Row House indoor rowing concept from Xponential Fitness, Extraordinary Brands plans to nearly double its portfolio of workout brands.

“We want to acquire two more wellness brands and if everything goes according to our plan, we should be able to announce it in the coming months,” said Extraordinary CEO RJ Krone. “Our priority right now is to work with Row House and our other two brands to help them grow.”

Extraordinary Brands, founded by Paul Flick after acquiring indoor cycling concept Purvelo Cycle in 2022, also owns Eat the Frog Fitness, another group fitness brand that offers 24/7 access to a training studio with virtual and trainer-led small group classes. In 2006, Flick founded Premium Service Brands, 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 locations, claims to be the largest rowing franchise concept in terms of the number of studios it operates in 19 states and the District of Columbia. The concept includes personalized performance metrics, resistance training, rowing and movement exercises to build endurance and strength at all levels.

The investment range for a traditional studio is $328,295 to $490,695, according to the franchise’s disclosure document.

Krone confirmed that Extraordinary has acquired a 70 percent stake in Row House, while Row House’s founders retain 30 percent control.

Before becoming president of Extraordinary Brands in December, Krone was vice president of studios and franchise operations at Pvolve, another boutique fitness concept. He said there are no immediate plans to make any changes to leadership positions at Row House.

Husband and wife Eric Von Frohlich and Debra Strougo founded Row House in 2014. It opened as many as 82 units in 2022 before Xponential put the brand up for sale, closing underperforming locations last year.

“They cleaned out the Row House so they could make the sale,” Krone said. He said the deal with Xponential included signed agreements to open two more Row House locations by January 2025. It also included the sale of more than 300 franchises.

Xponential, a publicly traded company, earlier this month indefinitely suspended CEO Adam Geisler following 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 that it defrauded 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 that it had 3,156 studios operating worldwide. The Stride and Row House spin-off deals appear to signify the company’s desire to streamline its portfolio as it embarks on a restructuring plan that began in late 2023 to cut costs.

Xponential declined to comment.

Krone said regardless of Xponential’s legal issues, the Row House deal represents a victory for all parties, including franchisees.

“I just had a conference call with franchisees yesterday and they obviously had a lot of questions like, ‘What’s next?’ and “What are your plans to help the company and grow?” – said Krone. “I assured them that Row House was a great exercise concept and that it all depended on us doing our part responsibly and growing together.”