Xponential Fitness Settles Maryland Franchise Disclosure Violations for $75K
Summary
Maryland Attorney General Anthony G. Brown announced a settlement with Xponential Fitness, Inc., a franchisor of fitness studio brands including Club Pilates, Yoga Six, and Stretch Lab, resolving alleged violations of Maryland Franchise Law. The state's Securities Division alleged that Xponential misrepresented typical franchise opening times as six months or less when actual times were closer to a year or longer, and failed to disclose legally mandated contact information for former franchisees. Under the Consent Order, Xponential paid a $75,000 civil monetary penalty and agreed to offer termination and fee refunds to certain Maryland franchisees with unopened studios.
What changed
The Maryland Attorney General's Securities Division alleged that Xponential Fitness misrepresented franchise disclosure information, claiming fitness studios could open in six months or less when actual opening times were closer to a year or longer. The company also failed to accurately disclose required contact information for former franchisees, preventing prospective franchisees from learning about delays from experienced operators. Xponential entered into a Consent Order requiring a $75,000 civil monetary penalty, cessation of violations, and offer of termination and refunds to affected Maryland franchisees.
Franchisors selling or offering franchises in Maryland must ensure Franchise Disclosure Documents accurately represent typical opening timelines and include legally mandated contact information for former franchisees. Companies operating under Maryland franchise law face monetary penalties and mandatory corrective actions for disclosure violations. Prospective franchisees should verify franchise disclosure claims and seek independent information from former franchisees before investing.
What to do next
- Cease and desist from offering or selling franchises in violation of Maryland Franchise Law
- Offer to terminate franchise agreements and refund fees to Maryland franchisees with unopened fitness studios
- Pay $75,000 civil monetary penalty to the State of Maryland
Penalties
$75,000 civil monetary penalty to the State of Maryland
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Attorney General Brown Announces Settlement with Xponential Fitness, Inc. for Alleged Violations of Maryland Franchise Law
Published: 4/15/2026
FOR IMMEDIATE RELEASE
Media Contacts [email protected]
410-576-7009
BALTIMORE, MD – Attorney General Anthony G. Brown today announced that his Securities Division has reached a settlement with Xponential Fitness, Inc. (Xponential), which sells franchises for fitness studios for brands including Club Pilates, Yoga Six, and Stretch Lab, for allegedly misrepresenting key information in its Franchise Disclosure Documents about the franchises, including the typical time to open an outlet and contact information for former franchisees.
“When Maryland residents invest their hard-earned money to buy a franchise, they deserve the most accurate and complete information before making that investment decision,” said Attorney General Brown. “My Office will continue to hold franchisors accountable for making deceptive or misleading claims.”
The Maryland Securities Division alleged in the Consent Order that Xponential franchisors falsely claimed that the typical time franchisees took to open a fitness studio was six months or less, when the actual time to open those fitness studios was closer to a year or longer. As a result, franchisees incurred substantial costs due to unexpected delays in opening their fitness studios.
In addition, the Securities Division alleged that Xponential franchisors failed to accurately disclose legally mandated contact information of former franchisees, which prevented prospective franchisees from obtaining important information from experienced fitness studio operators, which could have alerted them to the delays that franchisees experienced opening their fitness studio franchises.
Under the Consent Order, Xponential affiliates agreed to offer to terminate franchise agreements and refund fees of certain Maryland franchisees who still had unopened fitness studios. Xponential also agreed to settle with a Maryland franchisee whose outlet Xponential had previously terminated.
Xponential paid a civil monetary penalty of $75,000 to the State of Maryland under the Consent Order and agreed to permanently cease and desist from offering or selling franchises in violation of the Maryland Franchise Law.
For issues or questions regarding the offer and sale of franchises, please contact the Securities Division at [email protected].
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