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Robbins Agrees to Settle Franchise Suit : Marketing: The FTC says the infomercial king will pay more than $200,000. But he denies any wrongdoing.

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TIMES STAFF WRITER

Infomercial king Anthony J. Robbins has agreed to pay more than $200,000 to settle charges that he violated federal franchise rules, the Federal Trade Commission said Tuesday.

Robbins, best known through late-night television commercials hosted by former football star Fran Tarkenton, is a self-help lecturer to prominent entertainment and sports personalities. Robbins, author of the bestseller “Personal Power,” trekked to Camp David, Md., in January to give President Clinton a pep talk.

In a statement, Robbins, 34, denied any wrongdoing.

“We believe this course of action on our part is simply the most prudent and efficient way to resolve this dispute with the FTC,” the statement said.

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The FTC allegations involve sales of motivational seminar franchises by Robbins’ company, La Jolla-based Robbins Research International.

The commission said the company charged franchisees between $5,000 and $90,000 for the right to conduct seminars featuring videotapes of Robbins presenting his self-help techniques. Franchisees received kits containing Robbins’ titles, “Unlimited Power” and “Power to Influence,” as well as audiotapes and printed materials.

The commission said Robbins and his company gave franchisees inaccurate and incomplete financial information about the prospects for the seminar businesses. Franchisees were told they could conduct from 25 to 100 seminars a month and earn between $75,000 and $300,000 a year, the commission said.

But, “few, if any, franchisees have been able to sell that many seminars or make these earnings,” the FTC said.

The settlement requires Robbins and his company to pay franchisees $221,260 in redress and to repurchase seminar kits for $175 each, up to a maximum of $49,875 for all seminar kits.

Brad N. Hunsaker, director of legal services for Robbins Research International, said that 18 people who purchased franchises between 1988 and 1991 are covered by the settlement.

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Hunsaker said the company at one time had as many as 75 franchisees, but that the number has dwindled to 14. He said the company repurchased many of the franchises as part of settlement agreements with individual franchise owners. People who previously settled with the company are excluded from the FTC settlement, he said.

Hunsaker said that Robbins stopped selling seminar franchises in 1993 in order to concentrate on a new franchise business dealing with dental health care consulting.

Separately, Robbins is preparing to settle a civil lawsuit filed by Gunthy-Renker, the company that produces his infomercials, spokespersons for Robbins and the infomercial company confirmed.

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