The Federal Trade Commission proposed a settlement in October 2026 with Premier Franchising Group and sales organization Franchise Fastlane.
The settlement was over alleged deceptive earnings and semi-absentee claims in the Premier Martial Arts franchise system. The proposed order includes $1.85 million for affected consumers and an option for certain franchisees to cancel their agreements without penalty.
Separately, the International Franchise Association launched a Franchise Research and Insights Center with ProfitKeeper benchmarking data showing an 11.9% average profit margin for franchise systems operating 6 to 15 units in Q2 2026.
These two stories, taken together, reflect the range of the franchise news cycle in the week of October 12: a serious consumer protection action and a new data resource for prospective owners.
The week’s most consequential story was not about a grand opening.
The Federal Trade Commission announced a proposed settlement with Premier Franchising Group and its former franchise sales organization, Franchise Fastlane, over allegations that the companies made misleading or unsubstantiated claims about semi-absentee ownership and financial performance when selling Premier Martial Arts franchises. Neither company admitted to the allegations. If the court approves the proposed order, certain franchisees will have the option to cancel their agreements without penalty, and the companies will pay $1.85 million for consumer relief.
What makes the story worth reading carefully is the count. Premier Martial Arts listed 272 locations in June 2023. As of this reporting, that number stands at 115.
This is not a story about whether the franchise model works. It is a story about what happens when the sales process outpaces the operating reality, and when earnings projections are presented without adequate substantiation. The FTC’s central allegation was that prospective franchisees were misled about what they could expect to earn and how much time ownership would require. That is not a story unique to martial arts. It is a pattern that shows up in categories across the industry when a brand grows faster than its franchisees can sustain.
The practical takeaway for anyone evaluating a franchise right now is not fear. It is discipline. Item 19 of any Franchise Disclosure Document is where a franchisor chooses to share financial performance representations. If Item 19 is incomplete, or if the earnings figures presented during a discovery call are not reflected in the FDD, that gap deserves a conversation with a franchise attorney before you sign anything.
Where the Sector Is Growing
The caution above exists in context. The broader franchise sector continued expanding during the same week.
The Joint Chiropractic announced it has reacquired regional developer rights across Dallas, Austin, San Antonio, and Houston, along with prior reacquisitions in Chicago, Minnesota, Ohio, Iowa, and Nebraska. The company estimates those reacquired territories represent more than 150 potential additional clinic opportunities. That is a projection, not a count of signed agreements, but it signals that The Joint is investing in its own growth infrastructure rather than relying on regional development organizations to drive it.
The Brothers That Just Do Gutters opened its first international market, now offering Canadian franchise territories after reported growth to more than 450 U.S. units across 36 states.
College H.U.N.K.S. Hauling Junk and Moving awarded its Bloomington, Indiana, territory to an Indiana University senior planning to open before spring graduation, and noted that Fort Wayne and Evansville remain available for 2026 awards.
K9 Resorts, the luxury pet hotel concept, opened its first New York City location in Dumbo, a 10,000-square-foot resort extending the brand into one of the country’s most demanding urban markets.
Heal Wellness signed a 10-unit development agreement in Utah.
Zaxby’s executed what the company called its largest non-traditional development deal to date, a five-unit agreement with travel operator Areas USA for Florida Turnpike locations.
Dunn Brothers Coffee entered Illinois for the first time through a multi-unit agreement whose operators also hold Jersey Mike’s franchises.
This is what a functioning franchise economy looks like. New territories are being awarded. Experienced multi-unit operators are signing additional agreements. Brands are entering new states and new countries.
What the MTY Story Is and Is Not
MTY Group, the Canadian parent company of Papa Murphy’s, Cold Stone Creamery, and dozens of other chains, disclosed that it is reviewing its portfolio and may sell unspecified non-core brands. It reported 50 restaurant closures in the third quarter, most of them corporate-owned Papa Murphy’s locations, and has expanded a previously announced closure plan to 75 locations.
The distinction between corporate-owned and franchised closures matters. When a parent company closes its own corporate locations, it is often making a real estate or capital allocation decision, not necessarily a signal about the health of the franchise system. MTY’s CEO noted that the company is not considering selling its “crown jewels.” Three new Papa Murphy’s and Pinkberry co-brand franchise agreements were signed during the same period.
That does not mean candidates should approach Papa Murphy’s without scrutiny. It means the full picture requires reading Item 20 of the FDD, which separates corporate closure counts from franchised unit closures, and having direct conversations with current franchisees about their experience.
New Data for a More Informed Process
The International Franchise Association launched its Franchise Research and Insights Center this week, combining existing IFA research with quarterly ProfitKeeper benchmarking on profitability, labor costs, cost of goods, and operating expenses. The Q2 2026 data shows an 11.9% average profit margin for franchise systems with 6 to 15 units. That figure is a benchmark across a range of brands and categories, not a projection for any specific franchise, and the underlying data is available to IFA members.
Separately, Vast Coworking Group began offering AI agent technology integrated with HubSpot to owners in the Venture X, Office Evolution, and Intelligent Office franchise systems, reporting a roughly 26% higher after-hours lead conversion rate at participating locations. The technology is company-reported and not independently validated, but the integration of AI into franchise operations is no longer a future discussion. It is happening now, in live franchise systems, and the question for buyers is increasingly not whether AI will affect their business but how it already shapes the brands they are evaluating.
The Conversations You Need to Have
If you are in the early stages of exploring franchise ownership and want to understand how to read an FDD, evaluate earnings claims, and identify which growth categories represent real opportunity for your situation, the conversation starts with your franchise consultant, continues through a comprehensive due-diligence process including calls with current owners, and should always involve a franchise attorney reviewing the franchise agreement before you sign or pay anything.
If you've been researching franchises on your own but aren't confident that your findings are accurate or current, schedule a call with Will to discuss what you've learned and separate the noise of misleading findings from actionable intelligence.
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