AG James secured its largest ever financial settlement related to violations of New York’s Franchise Sales Act. Following an OAG investigation, California-based fitness studio company Xponential Fitness, Inc. (Xponential) and its current and former subsidiaries will pay $3,971,250 for illegally misleading small business owners. The investigation found that Xponential and its subsidiary brands, which own thousands of fitness studios across the country, misled prospective franchise owners about the timeline for opening a new location while selling them franchise licenses. 

“New Yorkers who take the risk of opening a local franchise should be able to trust that the companies they are going into business with will treat them fairly. Xponential misled small business owners with false promises and caused them to lose significant amounts of money. My office has secured restitution for the business owners who were misled by Xponential, and I will continue to enforce the law to ensure small businesses in New York have a fair shot at success.” -AG James