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FTC Fines Xponential Fitness $17M for Franchise Rule Violations

Xponential FitnessMarch 18, 2026Federal Trade Commission

Penalty Amount

$17,000,000

Summary

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.

Remedy

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.

Monetary PenaltyInjunctionConsent DecreeConsumer Refunds

Contract Impact

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.

Contract Search Terms

franchise disclosure documentFDD delivery timelineexecutive litigation disclosurefranchise turnover reportingstudio opening timelinefranchise fee disclosuretermination disclosure

Laws Cited

Franchise Rule

Violation Types

Entity Details

Entity

Xponential Fitness

Industry

Other

Official Sources

Source Evidence

Entity Name
"Xponential Fitness"
Fine Amount
"$17 million"
Laws Cited
"Franchise Rule"
Violation Types
"Failed to provide accurate, complete, and timely Franchise Disclosure Documents"

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