Premier Martial Arts' franchisor and sales agent pay $1.85M over '15 hours a week' claims

According to the FTC's complaint, Premier Franchising Group LLC (PFG), franchisor of Premier Martial Arts (PMA), and its former franchise sales organization, Franchise Fastlane LLC (FFL), claimed without substantiation that non-martial artists could profitably run one or several PMA studios on a semi-absentee basis, working less than 15 hours a week. More than 200 buyers, including veterans, paid PFG an initial franchise fee of $49,500 or more, then spent hundreds of thousands of dollars more on build-outs and operations, with many taking on significant debt.

The complaint also says PFG's 2020-2022 Franchise Disclosure Documents reported significant income for existing studios without a reasonable basis to know it was representative. Existing franchisees ran studios of 2,000-7,000 square feet, while PFG recommended new ones open 1,200-1,600 square feet, and most new franchisees had no martial arts experience whereas existing ones had a lot. PFG did not disclose those differences, or that FFL personnel had management roles in marketing and selling the franchise.

On 5 October 2026 the FTC announced proposed settlements. PFG faces a $3,875,424 monetary judgment, partially suspended upon payment of $650,000, and FFL will pay $1.2 million. The money will compensate franchisees, and the orders bar the misrepresentations and require compliance with the Franchise Rule.

$1.85M to compensate franchisees; PFG's $3,875,424 judgment partly suspended; cancellation rights.

Sales pitches promised part-time, semi-absentee ownership to people with no martial arts background.

Earnings figures came from existing studios that were materially different from the ones new buyers would open.

The disclosure documents did not explain those differences, so buyers could not judge whether the numbers applied to them.

The sales organization's role in marketing and selling the franchise was not disclosed, as the Franchise Rule requires.

Earnings claims drawn from veteran franchisees' big studios do not describe what a newcomer with a small studio will earn.

The proposed order requires PFG to send certain franchisees a notice giving them the right to cancel their franchise agreements without penalty. The FTC voted 2-0 to file the complaint and proposed orders in the U.S. District Court for the Eastern District of Tennessee. Stipulated final orders take effect once the court approves and signs them.