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FTC Reaches $17M Settlement With Xponential Fitness Over Franchise Violations

By  |  March 19, 2026
FTC, price surveillance, retail prices

The Federal Trade Commission has reached a major settlement with Xponential Fitness, resolving allegations that the fitness franchisor violated federal franchise disclosure rules and engaged in deceptive business practices. The agreement includes $17 million in financial relief that will be distributed to affected franchisees, marking the largest consumer redress ever secured in a franchise-related case.

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    According to a statement from the agency, Xponential Fitness, which operates and sells franchises for brands such as Club Pilates, Pure Barre, YogaSix, StretchLab, and BFT, allegedly failed to provide accurate and complete information to prospective franchise owners. The FTC contends that these omissions and misrepresentations left many investors without a clear understanding of the financial risks and operational realities tied to their investments.

    Per a statement from the FTC, the company misrepresented how long it typically takes to open a franchise location. While Xponential indicated that studios could be operational within six months of signing an agreement, the agency alleges that many franchisees waited more than a year to open their businesses, if they opened at all. This discrepancy reportedly led to unexpected costs and financial strain for franchise owners who had already paid significant licensing fees.

    The FTC also alleges that Xponential failed to disclose critical background information about key executives. According to a statement, the company did not inform prospective franchisees about legal matters involving former CEO Anthony Geisler, including multiple fraud lawsuits that should have been disclosed under federal rules. Additionally, the company reportedly did not disclose a bankruptcy involving a former senior executive, as required.

    Further concerns outlined in the complaint include inaccurate reporting of franchise closures. Per a statement, Xponential either omitted or provided outdated contact information for franchisees whose studios had ceased operations within the previous year. This allegedly prevented prospective buyers from properly evaluating turnover rates and speaking with former franchise operators.

    The agency also found that Xponential failed to provide timely Franchise Disclosure Documents (FDDs), which are required to be delivered at least 14 days before any agreement is signed. According to a statement, this failure limited the ability of franchisees to fully review key financial and operational details before committing to agreements that often involved initial fees averaging $45,000 and long-term contractual obligations.

    Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the broader impact of such practices. He stated that many Americans invest substantial personal savings into franchise opportunities with the expectation of building successful businesses, and that failing to provide required disclosures undermines their ability to make informed decisions.

    As part of the settlement, Xponential Fitness will be required to pay $17 million in consumer redress and is prohibited from making misleading claims or omitting key information in future franchise offerings. The company must also comply fully with the Franchise Rule moving forward, including providing accurate, complete, and timely disclosure documents to prospective franchisees.

    Source: FTC Gov