FTC Settles With Xponential Fitness Over Franchise Sales Claims

The Federal Trade Commission has settled with Xponential Fitness over allegations that the company misled people considering buying one of its franchises, according to WKNO FM.

Xponential Fitness sells franchises for a range of fitness studio brands. The FTC alleged the company told prospective franchisees that studios typically opened within six months of signing a franchise agreement, when in practice the process generally took more than a year, if the studio opened at all. The agency also alleged the company did not provide disclosures required under the FTC's Franchise Rule.

The rule requires franchisors to give prospective buyers clear and accurate information about the opportunity so they can evaluate it before committing.

The report also outlined steps for people weighing a franchise purchase: confirm the franchisor has supplied every disclosure the Franchise Rule requires, speak with current and former franchisees about their experience, and consult an attorney, accountant or other adviser if the buyer is not an experienced businessperson. Owning a franchise carries no guarantee of success, with outcomes shaped by demand for the product, competition and broader economic conditions.

This story was first reported by WKNO FM.