FTC Settles With Martial Arts Franchisor for $1.85M Over Deceptive Claims

Premier Franchising Group LLC and its former franchise sales partner Franchise Fastlane LLC have agreed to pay $1.85 million to resolve Federal Trade Commission charges that the two companies deceived prospective buyers of Premier Martial Arts franchise opportunities and violated federal franchise disclosure rules.

The FTC alleged that both firms made misleading representations when marketing the Premier Martial Arts franchise system, steering investors into agreements based on inaccurate or incomplete information. The agency said the conduct also ran afoul of the Franchise Rule, a regulation requiring franchisors to provide standardized, truthful disclosures before any sale is completed.

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Under the proposed settlement terms, a portion of the $1.85 million will be used to compensate consumers who were harmed by the allegedly deceptive practices. In addition to the financial penalty, certain franchisees will be given the option to exit their franchise agreements without incurring cancellation fees or penalties — a remedy that goes beyond a simple monetary payout and could provide meaningful relief to operators locked into underperforming units.

The case underscores the FTC's continued focus on franchise industry compliance, particularly around earnings claims and pre-sale disclosures, which regulators have flagged as recurring problem areas across the sector. Franchise Fastlane, which handled sales on behalf of the franchisor, was named alongside PFG, signaling that third-party sales organizations can face direct regulatory liability for disclosure violations.

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