FTC Says Premier Martial Arts Misled Franchise Buyers — Companies Will Pay $1.85 Million

The FTC says more than 200 consumers paid at least $49,500 in initial fees to buy Premier Martial Arts franchises, with some allegedly incurring hundreds of thousands of dollars in additional expenses. The proposed settlements require $1.85 million in payments. BearFotos/Shutterstock

The Federal Trade Commission has reached proposed settlements requiring the franchisor behind Premier Martial Arts and its former franchise sales organization to pay $1.85 million over allegations that prospective business owners received misleading information about how much money they could make and how much work operating a franchise would require. The FTC announced the action October 5 against Premier Franchising Group LLC (PFG) and Franchise Fastlane LLC (FFL). Beyond the monetary settlement, certain Premier Martial Arts franchisees would be allowed to cancel their franchise agreements without penalty. The case provides a particularly expensive reminder for anyone considering buying a franchise: projected income and promises of a relatively hands-off business deserve careful scrutiny before tens or hundreds of thousands of dollars are committed.

FTC Says Buyers Paid at Least $49,500 Just to Get Started