Published Oct. 6, 2026. Premier Franchising Group and its former sales organization, Franchise Fastlane, have agreed to pay $1.85 million to settle Federal Trade Commission allegations that they used deceptive earnings claims and violated the Franchise Rule while marketing Premier Martial Arts studios.
The FTC announced the proposed settlements on Oct. 5. The orders require court approval and do not become final until signed by the federal judge overseeing the case.
What the complaint alleges
The FTC alleged that prospective owners were told people without martial-arts experience could profitably operate one or more studios on a semi-absentee basis while working fewer than 15 hours a week. More than 200 consumers paid an initial franchise fee of at least $49,500, according to the agency.
The complaint also alleges that earnings figures in franchise disclosure documents were based on established studios that differed materially from the smaller locations recommended to new franchisees. The companies are accused of failing to make required disclosures about those differences and about Franchise Fastlane’s role in marketing and selling the opportunity.
Payments and cancellation option
The proposed order requires Franchise Fastlane to pay $1.2 million. A $3.88 million judgment against Premier Franchising Group would be partially suspended after a $650,000 payment. The FTC said the collected money will be used to compensate franchisees.
Certain franchisees would also receive the option to cancel their agreements without a penalty. Both companies would be barred from making the challenged misrepresentations and required to comply with the Franchise Rule.
What prospective franchise buyers should check
Would-be owners should compare earnings claims with the written franchise disclosure document, ask how many locations actually achieved the advertised results and account for build-out, staffing, rent and financing costs. A settlement of allegations is not the same as a trial finding of liability.
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Featured image: Photo by Nguyen Hung on Unsplash. Image is illustrative.