Penalty Amount
$17,000,000
Consumer fraud enforcement action where the FTC settled with Xponential Fitness for violating the Franchise Rule by misrepresenting key information to franchisees, including time to open and costs. The settlement includes a $17 million monetary judgment for redress and prohibits future misrepresentations.
Xponential Fitness must pay $17 million in redress to franchisees, is prohibited from making misrepresentations to prospective franchisees, and must comply with the Franchise Rule by providing accurate and timely disclosure documents.
In-house legal teams at franchisors should review franchise agreement templates, Franchise Disclosure Document (FDD) preparation workflows, and vendor contracts with franchise marketing or sales platforms. Key clauses to audit include FDD delivery timelines (mandating at least 14 days between FDD receipt and agreement signing), representations regarding average studio opening timelines, disclosure clauses for executive litigation and bankruptcy history, and requirements to report terminated, cancelled, or non-renewed franchises with accurate contact information. Franchisee-facing agreements should also be reviewed for misrepresentations regarding costs, fees, and operational timelines to avoid deceptive practice allegations.
Entity
Xponential Fitness
Industry
OtherOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-secures-settlement-against-xponential-fitness-franchise-rule-violations
XPO StipOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-StipOrder.pdf
XPO Complaint
https://www.ftc.gov/system/files/ftc_gov/pdf/XPO-Complaint.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Xponential Fitness"
"$17 million"
"Franchise Rule"
"Failed to provide accurate, complete, and timely Franchise Disclosure Documents"
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