The Federal Trade Commission announced October 5, 2026 that franchisor Premier Franchising Group LLC (PFG) and its former franchise sales organization, Franchise Fastlane LLC (FFL), will pay $1.85 million to settle allegations of misleading claims about the Premier Martial Arts (PMA) franchise and violations of the Franchise Rule. The settlements are proposed.
According to the FTC’s complaint, the companies claimed that people who were not martial artists could profitably run one or more PMA studios on a semi-absentee basis, working less than 15 hours a week. The FTC says those claims drew more than 200 consumers, including veterans, to pay PFG an initial franchise fee of $49,500 or more. It says they then spent hundreds of thousands of dollars more to build out and run studios, and many took on significant debt.
The complaint also alleges PFG made deceptive earnings claims in its 2020-2022 Franchise Disclosure Documents. The FTC says PFG reported significant income for existing studios without a reasonable basis to know whether that was representative of new studios. For example, many existing franchisees ran studios of 2,000 to 7,000 square feet, while PFG recommended new franchisees open 1,200 to 1,600 square feet.
Under the proposed settlement with PFG, certain franchisees will be able to cancel their franchise agreements without penalty. “Franchisors are legally required to be upfront and honest about earnings potential and the associated risks,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.