Leadership and Companies
FTC Settlement Offers PMA Franchisees $1.85 Million and Cancellation Rights
Premier Franchising Group and Franchise Fastlane will pay $1.85 million over alleged deceptive franchise claims and rule violations.
What happened
The FTC accused Premier Franchising Group and former sales organization Franchise Fastlane of misleading prospective Premier Martial Arts franchisees about earnings and operating requirements. More than 200 consumers paid initial fees of at least $49,500, with many incurring additional expenses and debt. Proposed settlements require $1.85 million in payments, while certain franchisees may cancel without penalty.
Why it matters
The settlements provide compensation to affected franchisees and impose legal restrictions on future claims, while some franchisees can exit agreements without cancellation penalties.
Source: FTC News