GNC Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
GNC is a retail franchise selling vitamins, supplements, and sports-nutrition and wellness products. Franchisees run stores handling customer consultation, sales, and inventory, paying a percentage of sales as royalties.
FranchiseVerdict summary · 2026
A GNC franchise requires a total initial investment of $188K – $507K, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $476K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $188K – $507K
- 40th pct Healthcare
- Avg gross sales
- $476K
- 5th pct Healthcare
- Royalty
- 6.0%
- 11th pct Healthcare
- Units
- 2,140
- 80th pct Healthcare
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $188K – $507K including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $476K/year (median $444K).
- RISKVerdict A (Strongest tier), verdict score 68/100 (higher is better). SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- GNC Holdings, LLC
- Parent company
- ZT Biopharmaceutical LLC
- Ultimate parent
- Harbin Pharmaceutical Group Holding Co., Ltd.
- Predecessor
- General Nutrition Corporation
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Costello
- Incorporated in
- Delaware
- HQ
- 75 Hopper Place, Suite 501, Pittsburgh, Pennsylvania 15222
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $1.2B
- vs $1.3B prior year
Overview
About
- CEO
- Michael Costello
- Headquarters
- Pennsylvania
- Founded
- 1935
- FDD year
- 2025
- States available
- 42
Can you afford it, and what does the money buy?
Entry cost runs 16% below the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown31 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee - New Franchise Store | $20K | $20K | |
| Initial Franchise Fee - Conversion | $20K | $20K | |
| Initial Franchise Fee - Smoothie Bar | $1K | $1K | |
| Security Deposit - New Franchise Store | $3K | $3K | |
| Security Deposit - Conversion | $3K | $3K | |
| Equipment - POS & Peripherals and iPad & Peripherals | $4K | $7K | |
| Equipment - Computer (PC) and Printer | $1K | $2K | |
| Equipment - Smoothie Bar | $8K | $14K | |
| Signage - New Franchise Store | $9K | $20K | |
| Signage - Conversion | $0 | $20K | |
| Signage - Smoothie Bar | $1K | $3K | |
| Fixtures - New Franchise Store | $8K | $38K | |
| Fixtures - Conversion | $0 | $38K | |
| Fixtures - Smoothie Bar | $6K | $20K | |
| Construction and Other Store Costs - New Franchise Store | $35K | $250K | |
| Construction and Other Store Costs - Conversion | $35K | $186K | |
| Construction and Other Store Costs - Smoothie Bar | $14K | $25K | |
| Pre-Construction Architectural and Engineering Consulting Fees - New Franchise Store | $5K | $8K | |
| Pre-Construction Architectural and Engineering Consulting Fees - Smoothie Bar | — | — | |
| Project Management Fee - New Franchise Store | $5K | $5K | |
| Total initial investment | $308K | $956K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $188K – $507K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $308 |
| Transfer fee | $20K |
| Renewal fee | $13K |
| Inventory (initial) | $80K – $85K |
| Total fee load | 0.1% of rev |
A 0.1% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 67% below the healthcare norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$76K
16.0% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.8 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one GNC unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
21%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 GNC units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$857K
on $4.3M purchase
Total debt
$3.4M
SBA $2.1M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $476K
- Per unit, per year
- Median gross sales
- $444K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 675 outlets
- vs category median 20 · large
- Range (low → high)
- $139K→$1.6M
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $476K/year in gross sales. Revenue-to-investment ratio: 1.4x.
Fee burden
Total ongoing fee load of 0.1% — below the Healthcare average of 8.8%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -9.2% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare averages
How GNC Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,140
- Opened
- 22
- Last reporting year
- Closed
- 6
- Terminated
- 22
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 36
- Term expired, not renewed (per Item 20)
- Turnover rate
- 16.4%
- Company-owned
- 1,437
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Net growth (3-yr)
- -9.2%
- Net unit change over 3 years
- 3-yr CAGR
- -9.2%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 37
- Closed (3yr)
- 9
- Terminated (3yr)
- 43
- Non-renewed (3yr)
- 63
- Transfers (3yr)
- 51
- Reacquired (3yr)
- 8
- Franchisor bought back
- Transfer rate
- 3.3%
- Owners selling to other franchisees
- Continuity rate
- 91.1%
- Units that stayed open
- Termination rate
- 8.3%
- Franchisor-initiated terminations
- Ceased ops
- 54.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 41 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $1.9M
- Median loan
- $192K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 7.4%
- avg rate to borrowers
- Franchised industry avg
- 24.6%
- brand beats franchise avg ↓
- Jobs supported
- 31
- 1.6 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 30% went to startups / new businesses, 70% to established operators
Franchise vs independent — in food (health) supplement stores, franchised businesses charge off at 24.6% vs 23.5% for independents — franchising is associated with 5% higher SBA default risk in this category.
Top lenders financing GNC franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into GNC's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
GNC presents high investment risk due to a contracting franchise system, multiple active litigations involving employment and consumer issues, undisclosed profitability metrics, and franchisor going concern status that threatens long-term operational support.
Litigation (Item 3)
3 pending international franchise arbitrations (ONI Singapore/Philippines, ONI Malaysia/Taiwan, Maxiva Mexico) where GNC is both plaintiff and defendant via counterclaims; 4 predecessor cases still pending (employee/customer claims; predecessor's bankruptcy plan administrator handling). Multiple completed predecessor cases including a $9.02M class action settlement (Brewer) and a $6M consolidated class action settlement (Harrison/Kaskorkis/Gennock).
Largest disclosed settlement: $9,020,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Predecessor General Nutrition Corporation and 16 affiliates filed Chapter 11 bankruptcy on June 23, 2020. Assets sold to Harbin Pharmaceutical Group (current ultimate parent) on October 7, 2020. Plan confirmed October 14, 2020, effective October 30, 2020. Also: GNC Ireland subsidiaries entered liquidation July 2024.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 68 / 100 verdict
- 01MINORSystem declining 6.3% YoY with 2,140 units suggests market contraction and potential viability concerns
- 02HIGHNumerous active litigations across trademark, employment, and consumer class actions indicate systemic operational and compliance issues
- 03HIGHGoing concern status raises questions about franchisor's financial stability and ability to support franchisees long-term
- 04MEDNo disclosed average net income creates opacity around actual profitability; $475K revenue with 6% royalty leaves unclear margins after COGS
- 05HIGHHigh litigation frequency (especially wage/hour and product labeling) suggests compliance challenges that could affect franchisee liability exposure
- 06MINOR5-year term is relatively short; combined with declining unit count, indicates potential challenges renewing or growing territory
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Pittsburgh, Pennsylvania |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 7 |
View Item 3 litigation summary
3 pending international franchise arbitrations (ONI Singapore/Philippines, ONI Malaysia/Taiwan, Maxiva Mexico) where GNC is both plaintiff and defendant via counterclaims; 4 predecessor cases still pending (employee/customer claims; predecessor's bankruptcy plan administrator handling). Multiple completed predecessor cases including a $9.02M class action settlement (Brewer) and a $6M consolidated class action settlement (Harrison/Kaskorkis/Gennock).
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 80 hrs
- Training location
- Phase I: franchisee-operated or corporate GNC store; Phase II: Pittsburgh, PA or virtual; Phase III: franchised location
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- GNC proprietary POS system (POS and iPad peripherals)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: GNC proprietary POS system (POS and iPad peripherals)
Item 20 · call current owners
Franchisee Contacts
703 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
GNC · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a GNC franchise?
The total investment to open a GNC franchise ranges from $188K – $507K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do GNC franchise owners earn?
According to Item 19 of the GNC FDD, the average gross sales per unit is $476K. The median is $444K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the GNC FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the GNC FDD and qualifies whose outlets they describe.
What is GNC's franchise failure rate?
Based on SBA 7(a) loan data, GNC has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many GNC franchise locations are there?
As of their most recent FDD filing, GNC has 2,140 total units in the United States, including 703 franchised units and 1,437 company-owned units. 22 new units were opened in the latest reporting year.
Is GNC a good franchise to buy?
FranchiseVerdict rates GNC as a A-grade franchise with a verdict score of 68 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.