Premier Martial Arts $1.85 Million FTC Settlement, Franchise Rule Case, Who Qualifies and Franchise Cancellation Rights

The Federal Trade Commission (FTC) has proposed a $1,850,000 settlement with Premier Franchising Group, LLC (PFG), the franchisor of Premier Martial Arts, and its former sales organization, Franchise Fastlane, LLC (FFL). The FTC alleges the companies misled prospective franchisees about earnings, profitability and how much time owners would need to run a studio. Franchise Fastlane would pay $1,200,000 and Premier Franchising Group $650,000. Certain franchisees would also get a chance to cancel their agreements without a penalty.

Official FTC case page (orders, complaint, status): https://www.ftc.gov/legal-library/browse/cases-proceedings/premier-franchising-group-franchise-fastlane

Claim form: None. There is no public claim form or general claim deadline as of October 16, 2026. This is an FTC enforcement action, not a private class action. The FTC’s case page still lists the matter as pending, and the proposed orders must be approved and signed by the federal judge.

Quick Facts: Premier Martial Arts FTC Settlement

Detail	Information
Official website	FTC case page: https://www.ftc.gov/legal-library/browse/cases-proceedings/premier-franchising-group-franchise-fastlane
Claim form	None identified. No claim form link exists
Claim deadline	None announced
Total proposed payments	$1,850,000
Franchise Fastlane payment	$1,200,000 (due within seven days after the order is entered)
Premier Franchising Group payment	$650,000
Separate judgment against PFG	$3,875,424, with the remainder suspended on conditions after the $650,000 payment
Plaintiff	Federal Trade Commission
Defendants	Premier Franchising Group, LLC; Franchise Fastlane, LLC
Court and case number	U.S. District Court, Eastern District of Tennessee, No. 3:26-cv-00487
Complaint filed	October 5, 2026
Allegations	Deceptive financial-performance claims, misleading statements about owner involvement, Franchise Rule violations
Potentially affected	Purchasers of Premier Martial Arts franchises who were exposed to the alleged sales claims (complaint describes 200+ purchasers)
Franchise cancellation	Certain franchisees would receive notice offering penalty-free cancellation
Status	Pending; proposed orders not confirmed as court-approved

What the FTC Alleged

The FTC filed its complaint on October 5, 2026, alleging violations of Section 5 of the FTC Act and the Franchise Rule, 16 C.F.R. Part 436. These are allegations, not findings, and the defendants have agreed to the proposed orders without the court adjudicating the claims.

• Misleading earnings and time claims. The companies allegedly promoted Premier Martial Arts as an opportunity people without martial arts experience could run profitably on a semi-absentee basis, working fewer than 15 hours a week.
• More than 200 purchasers. According to the complaint, they paid initial franchise fees of at least $49,500, and many also incurred construction, setup and operating costs and took on significant debt.
• Financial data from different studios. The FTC alleges PFG used financial information from existing studios, often run by experienced martial artists and ranging from about 1,100 to 7,500 square feet, to market to new owners who were generally steered toward studios of 1,200 to 1,600 square feet. It also points to a franchise website advertising average gross sales of $548,345, based on purported 2021 data. Gross sales are not profit, since rent, wages, royalties, marketing and loan payments reduce what an owner keeps.
• Franchise Fastlane’s role. The complaint says FFL worked with PFG from February 2019 through at least May 31, 2022, handling major parts of franchise development and recruitment, and alleges PFG failed to disclose FFL personnel’s management responsibilities in its disclosure documents.
• Sales pause. The complaint says PFG paused signing new franchise agreements in November 2022 after facing private lawsuits over its sales practices.

The Law Behind the Case

This is general legal information about the statutes and rules involved. The final orders control what applies here.

The FTC Franchise Rule (16 C.F.R. Part 436)

• Franchise Disclosure Document (FDD). A franchisor must give a prospective buyer an FDD at least 14 calendar days before the buyer signs a binding agreement or pays any money (16 C.F.R. § 436.2(a)).
• Financial performance representations (Item 19). If a franchisor makes earnings claims, it must have a reasonable basis and written substantiation for them and must disclose them in the FDD in the manner the rule requires (16 C.F.R. § 436.5(s)). Claims made outside the FDD that differ from or add to those disclosures are prohibited (16 C.F.R. § 436.9).
• Disclosure of management personnel. The FDD must identify people with management responsibility for franchise sales and operations (16 C.F.R. § 436.5(b)).
• Coverage. The rule applies to franchisors and to those who sell on their behalf, which is why a separate sales organization can be named.

FTC Act Section 5 (15 U.S.C. § 45)

Section 5 prohibits unfair or deceptive acts or practices. A claim is generally deceptive if it is likely to mislead consumers acting reasonably and is material. Earnings claims need competent evidence behind them.

Why the Money Is Available: Section 19 and AMG Capital

In AMG Capital Management, LLC v. FTC, 593 U.S. 67 (2021), the Supreme Court held that Section 13(b) of the FTC Act does not authorize the FTC to obtain equitable monetary relief such as restitution. Because a Franchise Rule violation is a violation of a trade regulation rule, the FTC can instead seek consumer redress under Section 19 (15 U.S.C. § 57b), which allows courts to grant relief such as rescission or reformation of contracts and refunds of money, and can seek civil penalties for rule violations under 15 U.S.C. § 45(m)(1)(A), which are adjusted annually for inflation. Orders also commonly include permanent injunctions under Section 13(b) (15 U.S.C. § 53(b)). This framework helps explain why the proposed orders include both monetary payments and a cancellation remedy.

No Private Right of Action Under the Franchise Rule

Courts have generally held that the Franchise Rule can be enforced by the FTC, not by private plaintiffs. Individual franchisees may still have claims under state franchise and business opportunity laws (some states require franchise registration and disclosure), state consumer protection laws, fraud and breach of contract. These depend on the facts and the state. Time limits vary, so anyone considering a separate claim should speak with a franchise attorney promptly.

Suspended Judgments

FTC orders often enter a large monetary judgment but suspend most of it based on the defendant’s inability to pay, conditioned on the truthfulness and completeness of the financial disclosures given to the FTC. If the FTC shows through the court process that the defendant materially misrepresented its finances, the suspended amount can become due. That is the structure the proposed PFG order uses.

Other Related Rules

• Business Opportunity Rule (16 C.F.R. Part 437) covers certain business opportunities that are not franchises.
• FTC policy statement (2024) addressed franchisors’ use of contract terms that discourage franchisees from speaking to regulators or reporting violations.
• Retaliation and confidentiality terms: franchisees should not be prevented from communicating with the FTC or state regulators.

How the Proposed $1.85 Million Works

The structure is more complicated than splitting $1.85 million among franchisees.

Franchise Fastlane ($1,200,000). The proposed order enters a $1,200,000 judgment for the FTC, payable within seven days after entry. The money is intended to contribute to relief for affected franchisees.

Premier Franchising Group ($650,000). The proposed order enters a $3,875,424 judgment but requires payment of $650,000, with the rest suspended on conditions tied to the accuracy and completeness of the company’s financial statements. The $3,875,424 is not an extra amount franchisees are entitled to receive.

Will payments be equal? The distribution formula has not been published. The proposed orders say money paid to the FTC will be used to compensate franchisees, through an FTC-administered fund or an administrator. Dividing $1,850,000 by the 200-plus purchasers in the complaint would not be a reliable estimate, since the number of eligible people, the final amount collected and the method all matter.

Franchise Cancellation Option

Under the proposed order, PFG must notify certain franchisees that they may cancel their franchise agreements without a penalty.

• Email first. PFG would send notice electronically and must use reasonable means to determine whether the email was opened.
• Mail follow-up. If there is no indication the email was opened within 20 days, PFG must send the notice by U.S. mail within an additional 10 days.
• Response deadline. The deadline runs from the last date the notice was sent. The exact date for each franchisee must come from the final court-approved order and the notice actually received.
• One-step cancellation. The notice must include a link to an online form allowing cancellation in one step.

What cancellation means: Future payment obligations would generally end, subject to amounts already accrued, and the franchisee would lose the right to use Premier Martial Arts trademarks and system identifiers. Cancellation does not automatically refund franchise fees, build-out costs or loan payments, which are separate from this option and from FTC compensation. Before acting, consider leases, financing, equipment, employees, member contracts and other obligations, and consult an attorney if unsure.

Who May Qualify for Compensation?

The affected group is purchasers of Premier Martial Arts franchises exposed to the alleged misleading sales representations. The complaint describes more than 200 purchasers who paid at least $49,500 in initial fees. That description is not a final eligibility definition. The FTC’s approved redress process will determine who qualifies and what evidence may be needed.

Paying a franchise fee does not by itself guarantee a payment. Eligibility may depend on the transaction, the representations received and the records available to the FTC.

Documents to keep:

• Signed franchise agreement and amendments
• The FDD version received before signing, and proof of the date received
• Emails, brochures, presentations and other sales materials
• Any earnings projections or statements about semi-absentee ownership
• Records of franchise fees, construction, equipment and operating expenses
• Loan records, royalty payments and operating statements
• Contact details used when you bought the franchise

How to Follow the Settlement

1. Check the FTC case page for a court approval order, a redress announcement or additional instructions.
2. Watch for cancellation notices at the email and mailing address tied to your agreement. If a message claims to be FTC-related, verify it on the FTC case page before giving out any information.
3. Follow any FTC compensation instructions if a payment program is announced. The FTC may use defendant records to identify recipients, and current materials do not show that everyone must apply separately.
4. Avoid scams. Never pay a fee to anyone claiming they can get you settlement money, and never give banking details or tax ID numbers to unverified sites. Report suspected scams at ReportFraud.ftc.gov.

Can Franchisees Opt Out or Object?

This is a government enforcement action, not a Rule 23 class action, so no general class-member opt-out or objection process has been identified. The cancellation option is a separate direct-notice remedy. The FTC action does not mean every private dispute with PFG has been resolved, and whether a franchisee has a separate claim depends on the facts, contract terms, applicable law and the scope of the final order.

Key Dates

Date	Event
2018	PFG began marketing and selling Premier Martial Arts franchises (per FTC complaint)
February 2019	Start of period Franchise Fastlane worked with PFG (per complaint)
May 31, 2022	End of FFL period identified in the complaint
November 2022	PFG paused signing new franchise agreements after private lawsuits (per complaint)
October 5, 2026	FTC filed its complaint and proposed stipulated orders
October 13, 2026	FTC case page updated, listing the matter as pending
Court approval, cancellation notices, redress payments	Not confirmed; no dates announced

FAQs About the Premier Martial Arts FTC Settlement

Is the settlement approved?

The FTC lists the case as pending. The proposed orders were filed October 5, 2026, and a judge’s signature has not been confirmed.

Is there a claim form?

No public claim form has been identified. The FTC says the money will be used to compensate franchisees, but the distribution process has not been announced.

What is the claim deadline?

None announced. The cancellation notice has its own deadline, which must come from the final order and the notice you receive.

Who may receive money?

The complaint describes 200-plus purchasers who paid at least $49,500 in initial fees. The final redress process will decide who qualifies.

Can all franchisees cancel their contracts?

No. The proposed order covers certain franchisees who receive the official notice.

Does Premier Franchising Group have to pay $3,875,424?

The order enters that judgment but provides for payment of $650,000 with the rest suspended on conditions. It can be reinstated if the conditions are not met, following the required court process.

Will Franchise Fastlane pay $1,200,000?

The proposed order requires payment within seven days of entry. Do not report it as paid until the order is entered and payment is confirmed.

Is this a class action?

No. It is an FTC enforcement lawsuit.

Did the companies admit wrongdoing?

The orders were proposed as stipulated settlements. Check the signed orders for any admissions or denials of liability.

Can I sue separately?

Possibly, under state franchise, consumer protection or contract law. The Franchise Rule itself is enforced by the FTC, not private plaintiffs. Time limits apply, so consult a franchise attorney.

What should a Premier Martial Arts owner do now?

Preserve your documents, monitor the FTC case page, and review any notice carefully. Ask an attorney before acting if you have questions about accrued payments, leases, debt or other obligations.

Related reading on AllAboutLawyer.com: FTC Refunds Issued in August 2026, Who’s Getting Paid? and Titan Fitness Deceptive Sales Emails Lawsuit.

Sources and Official Legal References

1. Federal Trade Commission, press release on the Premier Martial Arts settlement: https://www.ftc.gov/news-events/news/press-releases/2026/10/premier-martial-arts-franchisor-its-former-franchise-sales-organization-settle-ftc-charges-companies
2. FTC case page, FTC v. Premier Franchising Group and Franchise Fastlane, No. 3:26-cv-00487: https://www.ftc.gov/legal-library/browse/cases-proceedings/premier-franchising-group-franchise-fastlane
3. FTC Complaint: https://search.ftc.gov/system/files/ftc_gov/pdf/PFG-Complaint.pdf
4. Proposed Stipulated Order, Premier Franchising Group: https://www.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder-PFG.pdf
5. Proposed Stipulated Order, Franchise Fastlane: https://search.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder-FFL.pdf
6. 16 C.F.R. Part 436 (Franchise Rule): https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436 and 16 C.F.R. Part 437 (Business Opportunity Rule)
7. 15 U.S.C. §§ 45, 53(b), 57b (FTC Act Sections 5, 13(b) and 19)
8. AMG Capital Management, LLC v. FTC, 593 U.S. 67 (2021)
9. FTC fraud reporting: https://reportfraud.ftc.gov/

Disclaimer: This article is for general informational purposes only and is not legal advice. AllAboutLawyer.com is a legal information website, not a law firm. Laws are summarized and may change; consult a licensed attorney about your own situation.