Xponential Fitness to Pay $3.9 Million to Settle Violations Related to New York's Franchise Sales Act

MT Newswires Live

06/10

Xponential Fitness (XPOF) along with its current and former subsidiaries are expected to pay $3.9 million to settle violations related to New York's Franchise Sales Act, Attorney General Letitia James said on Tuesday.

An investigation by the Office of the Attorney General, or OAG, found that the company misled prospective franchise owners about the timeline for opening a new location while selling them franchise licenses, according to a statement.

Xponential Fitness filed disclosure documents with OAG that estimated studio opening times of three to six months, while OAG's investigation found that these fitness studios took more than 13 months to open, New York Attorney General Letitia James said.

As a result, Xponential Fitness estimated timelines led to significant financial losses for some franchisees, while others were ultimately never able to open their locations, James added.

Xponential Fitness did not immediately respond to MT Newswires' request for comment.

Price: 5.84, Change: +0.33, Percent Change: +5.99

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