GNCFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $188K – $507K
- 42nd pct Healthcare
- Avg gross sales
- $476K
- 11th pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 2,140
- 77th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
Franchising since 1987. Systems this mature have refined operations and brand recognition.
Franchised units fell from 750 to 703 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $188K – $507K including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $476K/year (median $444K).
- Verdict F (Bottom Quintile) with a risk score of 92/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GNC Holdings, LLC
- Parent company
- Harbin Pharmaceutical Group Holding Co., Ltd.
- Predecessor
- was General Nutrition Corporation
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 75 Hopper Place, Suite 501, Pittsburgh, PA 15222
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $1.3B
- vs $1.2B prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
GNC franchisees operate retail supplement and health product storefronts, managing inventory of vitamins, minerals, sports nutrition, and wellness products. Daily operations include customer consultation and sales, inventory management, point-of-sale transactions, and compliance with product labeling and marketing claims. Franchisees pay 6% of gross sales as royalties regardless of profitability.
- CEO
- Michael Costello
- Headquarters
- PA
- Founded
- 1935
- FDD year
- 2025
- States available
- 42
FDD Item 7 · 2025 filing · 31 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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $188K – $507K
- Near category avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $15K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- 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 | $75 |
| Transfer fee | $20K |
| Renewal fee | $13K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $476K
- Per unit, per year
- Median gross sales
- $444K
- Item 19 type
- gross_sales
- Sample size
- 675 units
- vs category median 12 · large
- Range (low → high)
- $139K→$1.6M
- Cohort dispersion (min → max)
- Quartile band
- $139K→$1.6M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
vs Healthcare averages
How GNC Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,140
- Opened
- 22
- Last reporting year
- Closed
- 64
- Terminated
- 22
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 36
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.0%
- Company-owned
- 1,437
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
- Net growth (yr3)
- -6.3%
- Net unit change last year
- 3-yr CAGR
- -9.2%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 47
- Transfers (3yr)
- 23
- Reacquired (3yr)
- 6
- 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 · 5 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The case number and name of each debtor is as follows: 20-11662 GNC Holdings, Inc. 20-11663 GNC Parent LLC 20-11664 GNC Corporation 20-11665 General Nutrition Centers, Inc. 20-11666 General Nutrition Corporation 20-1
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 92 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 33 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 17 hrs
- On-the-job training
- 96 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- POS and peripherals and iPad and peripherals
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS and peripherals and iPad and peripherals
Item 20 · call current owners
Franchisee Contacts
100 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 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 750 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 F-grade franchise with a risk score of 92 out of 100, 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.