GNC Franchise Cost, Revenue & Review 2026
- Investment
- $188K – $507K
- Disclosed sales
- $476K
- gross sales, not profit
- SBA charge-off
- Limited · 10 loans
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]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $188K – $507K
- 39th pct Healthcare
- Avg gross sales
- $476K
- 6th pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 2,140
- 80th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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 B (Above average), verdict score 58/100 (higher is better).
- GROWTHNegative: net -47 franchised outlets in the latest year (22 opened, 69 closed); 4 signed but not yet open (Item 20).
- 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
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Harbin Pharmaceutical Group Holding Co., Ltd.
- FDD Item 1, page 9 of the 2025 FDD
- 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 8% above the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee - New Franchise Store | $20K | $20K | |
| Security Deposit - New Franchise Store | $3K | $3K | |
| Equipment - POS & Peripherals and iPad & Peripherals | $4K | $7K | |
| Equipment - Computer (PC) and Printer | $1K | $2K | |
| Signage - New Franchise Store | $9K | $20K | |
| Fixtures - New Franchise Store | $8K | $38K | |
| Construction and Other Store Costs - New Franchise Store | $35K | $250K | |
| Pre-Construction Architectural and Engineering Consulting Fees - New Franchise Store | $5K | $8K | |
| Project Management Fee - New Franchise Store | $5K | $5K | |
| Opening Inventory - New Franchise Store | $80K | $85K | |
| Utility Security Deposits | $2K | $3K | |
| Business and Worker's Compensation Insurance | $3K | $11K | |
| Training Expenses | $2K | $3K | |
| Miscellaneous Opening Costs | $3K | $4K | |
| Rent/Leasehold Space - 1 month | $1K | $19K | |
| Additional Funds - 3 months | $10K | $30K | |
| Total initial investment | $188K | $507K |
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%
- 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 30% below the healthcare norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for GNC until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$367K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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→$1.6MCited, not corroborated — printed on page 102 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- 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 median of 8.0%.
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 medians
How GNC Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 69
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 22
- Not renewed
- 36
- Transferred
- 23
- Reacquired
- 5
- Franchisor bought back
- Signed, not yet open
- 4
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
- 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.
Where the owners are · Item 20 owner list
701 current owners across 41 states.
- TX 153
- CA 86
- FL 71
- GA 27
- IL 27
- NJ 25
- OH 24
- PA 24
- TN 24
- NC 22
- MI 21
- NY 18
- +29 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 7.4%
- avg rate to borrowers
- Franchised industry avg
- 24.6%
- n=347 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for GNC from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 60%
- Avg interest rate
- 7.44%
- Lender concentration
- 30.0%
- Job velocity
- 1.6 per $100K
- NAICS benchmark
- 12.5%
- NAICS 446191
- Jobs supported
- 31
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 3 | $283K | 0.0% |
| 2 | TD Bank, National Association | 2 | $214K | 0.0% |
| 3 | SmartBank | 1 | $420K | 0.0% |
| 4 | Bank of America, National Association | 1 | $452K | N/A |
| 5 | Granite Bank | 1 | $85K | 0.0% |
| 6 | Old National Bank | 1 | $236K | N/A |
| 7 | KeyBank National Association | 1 | $196K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| INIndiana | 3 | 0 | -- |
| PAPennsylvania | 2 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
| MSMississippi | 1 | 0 | -- |
| TNTennessee | 1 | 0 | 0.0% |
| UTUtah | 1 | 0 | -- |
| WVWest Virginia | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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: $2,400,000
Bankruptcy (Item 4)
Subject: the company or an affiliate. Disclosed (Item 4 covers the last 10 years)
On June 23, 2020, our predecessor, General Nutrition Corporation (the former franchisor) and 16 affiliated companies each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. ... On July 10, 2024, GNC Ireland petitioned the High Court of Ireland to appoint provisional liquidators and begin liquidation proceedings. ... On July 23, 2024, Conn’s, Inc., a home appliance and furniture retailer, the address and principal place of business of which is 2445 Technology Forest Blvd., Suite 800, The Woodlands, Texas 77381, and ten (10) of its affiliated companies, including Conn Appliances, Inc. a/k/a Conn’s Home Plus (collectively, the “Debtors”), filed petitions in the United States Bankruptcy Court for the Southern District of Texas seeking relief under Chapter 11 of the United States Bankruptcy Code.
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated total revenue of GNC Holdings, LLC and subsidiaries for FY ending Dec 31, 2024 = $1,174,586,047; 12.2% derived from required purchases/leases by franchisees ($140,673,390 inventory; $253,111 equipment/fixtures/construction; $1,438,800 POS comm fees; $1,496,770 rent).
ⓘ 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 58 / 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
- 03MEDNo disclosed average net income creates opacity around actual profitability; $475K revenue with 6% royalty leaves unclear margins after COGS
- 04HIGHHigh litigation frequency (especially wage/hour and product labeling) suggests compliance challenges that could affect franchisee liability exposure
- 05MINOR5-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
Litigation case detail31 matters · Item 3
Litigation cases
The franchisor
Pending (3)
Maxiva S.A. de C.V. (Mexico) v. GNC Holdings, LLC, et al.
pendingBrought by a franchisee · filed 2023-08-04 · American Arbitration Association · AAA Case No. 01-23-0003-4773
“Maxiva S.A. de C.V. (Mexico) v. GNC Holdings, LLC, et al., American Arbitration Association, AAA Case No. 01-23-0003-4773. On August 4, 2023, claimant, our exclusive franchisee and distributor in Mexico, filed an arbitration demand alleging breach of existing development, franchise, and distribution agreements with claimant and tortious interference with claimant”Page 18 of the 2025 FDD, Item 3
Outcome:“The parties are in the discovery phase of the lawsuit and produced document productions in November 2024 and February 2025.”
ONI Global Pte. Ltd. (Singapore and Philippines), et al. v. GNC Holdings, LLC
pendingBrought by a franchisee · filed 2022 · International Centre for Dispute Resolution, American Arbitration Association · 01-22-0002-2259; 01-22-0002-2885
“ONI Global Pte. Ltd. (Singapore and Philippines), et al. v. GNC Holdings, LLC, International Centre for Dispute Resolution, American Arbitration Association, Case No. 01-22-0002-2259; Case. No. 01-22-0002-2885. On or about May 31, 2022, the claimants, international GNC franchisees, filed two arbitration demands for GNC’s alleged breach of Distribution Agreements”Page 17 of the 2025 FDD, Item 3
Outcome:“The Tribunal found in our favor. We were awarded monetary damages for Claimant’s breaches. We recently filed an enforcement action to enforce our award in Court.”
ONI Global (Malaysia) Sdn Bhd. and ONI Retail PTE Ltd. Taiwan Branch v. GNC Holdings, LLC
pendingBrought by a franchisee · filed 2021 · International Centre for Dispute Resolution, American Arbitration Association · 01-21-0004-3516
“ONI Global (Malaysia) Sdn Bhd. and ONI Retail PTE Ltd. Taiwan Branch v. GNC Holdings, LLC, International Centre for Dispute Resolution, American Arbitration Association, Case No. 01-21-0004-3516. On or about June 19, 2021, the claimants, international GNC franchisees, filed a demand for arbitration for wrongful termination”Page 17 of the 2025 FDD, Item 3
Outcome:“The arbitration tribunal found in our favor in Taiwan, but found that we did not meet our burden in Malaysia.”
Parent, affiliates and predecessor
Pending (4)
Oosha Yusupov vs. GNC Holdings, Inc.
pendingThird-party plaintiff · GNC Holdings, Inc. (the former franchisor's parent company) · filed 2020-01-21 · Supreme Court of New York, County of Queens · 701041/2020
“Oosha Yusupov vs. GNC Holdings, Inc. (Supreme Court of New York, County of Queens, Case No. 701041/2020). On January 21, 2020, plaintiff, a GNC customer, filed a complaint against the former franchisor’s parent company alleging that the supplement Biotin sold at GNC stores presents the consumer with materially deceptive health benefit representations”Page 18 of the 2025 FDD, Item 3
Outcome:“We are unaware of the status of this matter, despite efforts to obtain updates from our predecessor.” (page 19)
Environmental Research Center, Inc. vs. General Nutrition Corporation, General Nutrition Centers, Inc., and GNC Holdings, Inc.
pendingThird-party plaintiff · General Nutrition Corporation, General Nutrition Centers, Inc., and GNC Holdings, Inc. · filed 2019-06-21 · Superior Court of the State of California, Alameda County · RG19024023
“Environmental Research Center, Inc. vs. General Nutrition Corporation, General Nutrition Centers, Inc., and GNC Holdings, Inc. (Superior Court of the State of California, Alameda County, Case No. RG19024023). On June 21, 2019, plaintiff, a non-profit California corporation, filed a complaint against the former franchisor and its parent companies”Page 19 of the 2025 FDD, Item 3
Outcome:“We are unaware of the status of this matter, despite efforts to obtain updates from our predecessor.”
Erika McCartney, in the public interest v. GNC Corporation, GNC, Inc., GNC Holdings, Inc., GNC Parent Corporation, et al
pendingThird-party plaintiff · GNC Corporation, GNC, Inc., GNC Holdings, Inc., GNC Parent Corporation, et al · filed 2019 · Superior Court of California, Alameda County · RG17882105
“Erika McCartney, in the public interest v. GNC Corporation, GNC, Inc., GNC Holdings, Inc., GNC Parent Corporation, et al (Superior Court of California, Alameda County, Case No.: RG17882105). On January 15, 2019, plaintiff, a resident of California, filed an Amended Complaint alleging that certain products sold at GNC stores contain lead.”Page 19 of the 2025 FDD, Item 3
Tawney L. Chevalier, et al. v. General Nutrition Centers, Inc. and General Nutrition Corporation
pendingThird-party plaintiff · General Nutrition Centers, Inc. and General Nutrition Corporation · filed 2013-09-19 · Court of Common Pleas, Allegheny County, Pennsylvania; Superior Court of Pennsylvania · No. 13-017194; No. 1437 WDA 2016
“Tawney L. Chevalier, et al. v. General Nutrition Centers, Inc. and General Nutrition Corporation (Court of Common Pleas, Allegheny County, Pennsylvania, No. 13-017194, Superior Court of Pennsylvania, No. 1437 WDA 2016). The case was filed in the Court of Common Pleas of Allegheny County, Pennsylvania, on September 19, 2013, as a class action on behalf of all GNC employees in Pennsylvania”Page 19 of the 2025 FDD, Item 3
Outcome:“The case was remanded to the lower court for final disposition. The plan administrator in the bankruptcy case described in Item 4 of this disclosure document is currently evaluating and handling all claims of which it has been made aware filed against the former franchisor and its affiliated debtor companies. We are unaware of the status of this matter, despite efforts to obtain updates from our predecessor.” (page 20)
Concluded (7)
Craig C. Kyllonen, Kypro Enterprises LLC and K and K GNC, LLC vs. GNC Franchising LLC and General Nutrition Corporation
settledBrought by a franchisee · GNC Franchising LLC and General Nutrition Corporation · filed 2018-08-16 · U.S. District Court for the District of Nevada · 2:18-01526
“Craig C. Kyllonen, Kypro Enterprises LLC and K and K GNC, LLC vs. GNC Franchising LLC and General Nutrition Corporation (U.S. District Court for the District of Nevada, Case No. 2:18-01526). On August 16, 2018, plaintiffs, GNC franchisees, filed this lawsuit against the former franchisor.”Page 21 of the 2025 FDD, Item 3
Outcome:“The parties settled this matter on or about July 9, 2019. The parties agreed to mutual general releases and that neither party would disparage or make negative comments regarding each other to any other person, which are based upon the acts alleged in the lawsuit. The parties specifically disclaimed any liability to each other, and neither party paid any money to the other party.” (page 22)
Darren Hartman, Patricia Hartman, Avowood, Inc., and Callamac, Inc. v. General Nutrition Corporation, GNC Holdings, Inc., and GNC Franchising, Inc.
settledBrought by a franchisee · General Nutrition Corporation, GNC Holdings, Inc., and GNC Franchising, Inc. · filed 2018-02-18 · Court of Common Pleas, Allegheny County, Pennsylvania · GD-1-002047
“Darren Hartman, Patricia Hartman, Avowood, Inc., and Callamac, Inc. v. General Nutrition Corporation, GNC Holdings, Inc., and GNC Franchising, Inc. (Court of Common Pleas, Allegheny County, Pennsylvania, Case No. GD-1-002047). On February 18, 2018, plaintiffs, former GNC franchisees, filed this lawsuit. Plaintiffs alleged two causes of action, the first for breach of contract”Page 23 of the 2025 FDD, Item 3
Outcome:“On or about April 30, 2019, the parties entered into a Confidential Settlement Agreement and General Release. Defendants agreed to pay plaintiffs the sum of $160,000, and the parties agreed to mutual general releases.”
In Re: Franchise No Poaching Provisions (General Nutrition Corporation d/b/a GNC)
concludedGovernment or regulatory action · General Nutrition Corporation d/b/a GNC · filed 2018 · King County Superior Court, State of Washington · 18-2-57774-8 SEA
“In Re: Franchise No Poaching Provisions (General Nutrition Corporation d/b/a GNC (King County Superior Court, State of Washington, Case No. 18-2-57774-8 SEA). In September, 2018, the Attorney General for the State of Washington issued a civil investigative demand to our predecessor relating to certain provisions in its franchise agreements.”Page 28 of the 2025 FDD, Item 3
Outcome:“On December 20, 2018, our predecessor and the Attorney General entered into an Assurance of Discontinuance.”
Robert J. Jones and Kristen A. Jones
settledBrought by a franchisee · the former franchisor (General Nutrition Corporation) · filed 2018-06-01 · Court of Common Pleas, City and County of Philadelphia, Pennsylvania · Case ID: 180503605
“Robert J. Jones and Kristen A. Jones (Court of Common Pleas, City and County of Philadelphia, Pennsylvania, Case ID: 180503605). On June 1, 2018, a praecipe for writ of summons was entered in the Court of Common Pleas, Philadelphia County, Pennsylvania, by Robert and Kristen Jones, who were franchisees. The praecipe related to lease negotiations being conducted by the former franchisor”Page 24 of the 2025 FDD, Item 3
Outcome:“The parties settled this matter on October 18, 2018. The former franchisor agreed to pay the Jones’ $31,000, and the parties agreed to mutual general releases.”
Agreement with United States Attorney's Office for the Northern District of Texas and U.S. Department of Justice
concludedGovernment or regulatory action · GNC Holdings, Inc., our predecessor's parent company · filed 2016
“Agreement with United States Attorney’s Office for the Northern District of Texas and U.S. Department of Justice. On December 7, 2016, GNC Holdings, Inc., our predecessor’s parent company, entered into an agreement with the United States Attorney’s Office for the Northern District of Texas and U.S. Department of Justice”Page 27 of the 2025 FDD, Item 3
Outcome:“Our predecessor also agreed to pay the sum of $2,250,000 to the United States. The agreement expired by its terms on December 7, 2021 with no further obligations.” (page 28)
In the Matter of GNC Franchising, LLC. Administrative Proceeding Before the Securities Commissioner of Maryland
concludedGovernment or regulatory action · GNC Franchising, LLC · filed 2005 · Securities Commissioner of Maryland (administrative proceeding) · 2005-0537
“In the Matter of GNC Franchising, LLC. Administrative Proceeding Before the Securities Commissioner of Maryland, Case No. 2005-0537. On or about August 30, 2005, the Securities Division of the Office of the Attorney General of the State of Maryland initiated an investigation into the accuracy of the “Item 3” disclosures in our predecessor”Page 29 of the 2025 FDD, Item 3
Outcome:“On August 15, 2006, our predecessor entered into a Consent Order with the Securities Commissioner, pursuant to which it agreed, without admitting or denying any of the Commissioner’s statements of fact or conclusions of law, except as to the Commissioner’s jurisdiction in the proceeding, (1) to immediately and permanently cease and desist from the offer and sale of franchises in violation of the Maryland Franchise ...”
United States of America v. General Nutrition, Inc. (Consent Decree with the Federal Trade Commission)
concludedGovernment or regulatory action · General Nutrition, Inc. · filed 1994 · United States District Court, Western District of Pennsylvania · Civ. Act. No. 94 0686
“Consent Decree with the Federal Trade Commission. Our predecessor entered into a Consent Decree with the Federal Trade Commission in 1994, United States of America v. General Nutrition, Inc. (United States District Court, Western District of Pennsylvania, Civ. Act. No. 94 0686). Pursuant to the Consent Decree, our predecessor was enjoined from representing that the use of certain hair care”Page 27 of the 2025 FDD, Item 3
Outcome:“Our predecessor also agreed to pay a civil penalty of $2.4 million.”
Status not stated in the filing (1)
Attorney General Rosenblum for the State of Oregon vs. General Nutrition Corporation
Government or regulatory action · General Nutrition Corporation · filed 2015-10-22 · Multnomah County Circuit Court · 15-CV-28591
“Attorney General Rosenblum for the State of Oregon vs. General Nutrition Corporation (Multnomah County Circuit Court, Case No. 15-CV-28591). On October 22, 2015, the Attorney General for the State of Oregon (“Oregon”) filed this lawsuit for alleged violations of the Oregon Unlawful Trade Practices Act (OUTPA)”Page 28 of the 2025 FDD, Item 3
Outcome:“We are unaware of the status of this matter, despite repeated efforts to obtain updates”
This list shows 15 of the 31 matters Item 3 discloses; the rest are in the filing.
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
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 territory |
| 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 | 31 |
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
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.
Who owns GNC?
GNC is franchised by GNC Holdings, LLC. Its parent company is ZT Biopharmaceutical LLC. The ultimate parent named in the FDD is Harbin Pharmaceutical Group Holding Co., Ltd.. Source: FDD Item 1, 2025 filing.
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?
SBA 7(a) loan charge-off data is not available for GNC (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 B-grade franchise with a verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.