'Truly Semi Absentee From the Beginning': Premier Martial Arts Franchisor and Sales Firm to Pay $1.85 Million in FTC Settlement

Published Oct. 6, 2026. Case statuses are current as of that date.

The pitch to prospective franchise buyers was a martial arts studio they could own without being martial artists, and run in a few hours a week. "This is not an owner operator, 30 or 40 [hours] a week model…. This is built to be 8 to 12 - maximum 15 hours - a week," a sales director told one prospect on a January 2021 call, according to a federal complaint [2].

On Oct. 5, 2026, the Federal Trade Commission announced that Premier Franchising Group, LLC (PFG), the franchisor of Premier Martial Arts (PMA), and its former franchise sales organization, Franchise Fastlane, LLC (FFL), will pay $1.85 million to settle allegations that they misled buyers about the franchise and violated the FTC's Franchise Rule [1]. The FTC filed the complaint and proposed orders in U.S. District Court for the Eastern District of Tennessee, Case No. 3:26-cv-00487 [1][2].

Important: This is a civil case, not a criminal prosecution. In the proposed stipulated orders, each company "neither admits nor denies any of the allegations in the Complaint" except as needed for jurisdiction [3][4]. The FTC notes that stipulated final orders have the force of law once a district judge approves and signs them [1].

Who's involved

According to the complaint, PFG is a Tennessee limited liability company now based in Bedford, Texas. It was based in Knoxville, Tennessee, from 2018 to 2023. Franchise Fastlane is a Delaware LLC based in Omaha, Nebraska, that marketed the PMA franchise from February 2019 until at least May 31, 2022 [2]. The complaint describes PFG's parent company as Unleashed Brands LLC, which is not a defendant [2].

What the FTC alleges

Semi-absentee promises. The FTC says the companies claimed that people with no martial arts background could profitably run one or several PMA studios "on a semi-absentee basis working less than 15 hours a week" [1]. On another 2021 call, the complaint says, the sales director called PMA "truly semi absentee from the beginning" and said other brands might advertise 10 to 15 hours a week but warn "for the first nine months you better put in 40 or 50 hours to get this thing moving," adding, "That's not us at all" [2].

Apples-to-oranges earnings. PFG's first recruits were "Legacy Franchisees," experienced martial artists who already ran established studios. PFG's 2020–2022 Franchise Disclosure Documents reported strong studio earnings, but the FTC alleges the company had no reasonable basis to think new, mostly inexperienced owners in smaller studios could match them. Many existing studios were 2,000 to 7,000 square feet, versus the 1,200 to 1,600 square feet PFG recommended for new franchisees [1]. The complaint says PFG's data showed "a New Franchisee studio earned on average $17,584 in 2021," while the 2022 disclosure document said an average franchisee studio's EBITDA "was, at best, $75,950" [2].

A footnote on the home page. Until at least Aug. 24, 2026, the PMA franchise website advertised average gross sales of $548,345. According to the complaint, that figure "actually represented the gross sales of only the top 15 PMA studios," a fact disclosed "in small print, in a footnote" [2].

Disclosure violations. The FTC also alleges that PFG failed to disclose that Franchise Fastlane staff had management roles in selling the franchise, and that both companies made financial performance claims not included in the disclosure documents [1].

The cost to buyers. More than 200 people paid an initial franchise fee of $49,500 or more. Those buyers, who included veterans, then "incurred hundreds of thousands of dollars in additional expenses" to build out and operate studios, with many taking on significant debt, the FTC says [1]. According to the complaint, veterans were often offered a 5% discount, and some buyers used SBA-backed loans or retirement savings [2]. PFG paused new franchise sales around November 2022, after private class actions by franchisees, but told the FTC it planned to resume selling, possibly in 2026 [2].

"Franchisors are legally required to be upfront and honest about earnings potential and the associated risks before franchisees pour their hard-earned money into a franchise opportunity," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection [1].

The proposed settlement

• PFG: a $3,875,424 judgment, partially suspended once it pays $650,000 [1].
• Franchise Fastlane: pays $1.2 million [1].
• Right to cancel: PFG must notify eligible franchisees (not Legacy Franchisees, settling private plaintiffs or transferees) that they may cancel their franchise agreements within 60 days. Those who cancel owe no more money after the cancellation date, except fees already due [3].
• Conduct rules: both orders bar the misrepresentations at issue and require Franchise Rule compliance. Payments go to compensate franchisees [1].

Red flags when buying a franchise

• "Semi-absentee" or "passive" ownership pitched to first-time owners, especially with a specific weekly hour count.
• Earnings figures drawn from a small, top-performing group, or from operators unlike you, such as larger or older locations or owners with industry experience.
• Numbers on calls or websites that aren't in Item 19 of the Franchise Disclosure Document.
• Pressure to buy multiple territories up front.
• Targeted discounts, such as for veterans, that shift attention from the total investment.

What to do before you sign

1. Get the FDD at least 14 days before paying or signing, as the Franchise Rule requires [2], and read Item 19 and its footnotes.
2. Call current and former franchisees listed in the FDD, especially owners who opened recently.
3. Ask exactly whose results any earnings claim is based on.
4. Have a franchise attorney and accountant review the deal before you borrow or tap retirement funds.
5. Report deceptive franchise sales to the FTC at ReportFraud.ftc.gov and to your state's franchise regulator or attorney general.

Case status (as of Oct. 6, 2026)

Defendant	Court	Status as of Oct. 6, 2026	Source
Premier Franchising Group, LLC	U.S. District Court, E.D. Tenn., No. 3:26-cv-00487 (civil)	Sued by FTC Oct. 5, 2026; proposed stipulated order ($3,875,424 judgment, suspended upon $650,000 payment; franchisee cancellation right) filed; neither admits nor denies allegations; order takes effect when entered by court	[1], [2], [3]
Franchise Fastlane, LLC	Same	Sued by FTC; proposed stipulated order ($1.2 million payment) filed; neither admits nor denies allegations	[1], [4]

A civil complaint contains allegations, not findings. Statuses can change.

Sources

1. Federal Trade Commission, "Premier Martial Arts Franchisor and its Former Franchise Sales Organization Settle FTC Charges that the Companies Made Deceptive Claims and Violated the Franchise Rule," press release, Oct. 5, 2026. 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 v. Premier Franchising Group, LLC, and Franchise Fastlane, LLC, Complaint, No. 3:26-cv-00487 (E.D. Tenn., filed Oct. 5, 2026). https://www.ftc.gov/system/files/ftc_gov/pdf/PFG-Complaint.pdf
3. Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief as to Premier Franchising Group, LLC (proposed), filed Oct. 5, 2026. https://www.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder-PFG.pdf
4. Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief as to Franchise Fastlane, LLC (proposed), filed Oct. 5, 2026. https://www.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder-FFL.pdf

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