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FranchiseVerdict

FDD Items 3 & 4 · 2025 filing

GNC litigation history

What GNC disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.

Items 3 (litigation) & 4 (bankruptcy) at a glance

What the filing discloses

Cases disclosed
31
Item 3, as counted in the filing
Largest settlement, franchisor's own cases
$2.4M
As stated in Item 3
Bankruptcy (Item 4)
Disclosed
Franchisor, parent, predecessor or officer
Filing year
2025
Disclosures cover the prior ten years

Extracted from the 2025 Franchise Disclosure Document

Item 3: litigation

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).

Item 3 (litigation) · 31 matters disclosed · 7 pending listed

Litigation cases

The franchisor and its predecessor

Pending (7)

  • Maxiva S.A. de C.V. (Mexico) v. GNC Holdings, LLC, et al.

    pending

    Brought by a franchisee · filed 2023-08-04 · American Arbitration Association · AAA Case No. 01-23-0003-4773

    “… 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

    pending

    Brought by a franchisee · filed 2022 · International Centre for Dispute Resolution, American Arbitration Association · 01-22-0002-2259; 01-22-0002-2885

    “… 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

    pending

    Brought by a franchisee · filed 2021 · International Centre for Dispute Resolution, American Arbitration Association · 01-21-0004-3516

    “… 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.”

  • Oosha Yusupov vs. GNC Holdings, Inc.

    pending

    GNC Holdings, Inc. (the former franchisor's parent company) · filed 2020-01-21 · Supreme Court of New York, County of Queens · 701041/2020

    “… (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.

    pending

    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

    “… (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

    pending

    GNC Corporation, GNC, Inc., GNC Holdings, Inc., GNC Parent Corporation, et al · filed 2019 · Superior Court of California, Alameda County · RG17882105

    “… (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

    pending

    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

    “… (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

    settled

    Brought 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

    “… (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.

    settled

    Brought 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

    “… (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)

    concluded

    Government 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

    settled

    Brought 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

    “… (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

    concluded

    Government 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

    concluded

    Government or regulatory action · GNC Franchising, LLC · filed 2005 · Securities Commissioner of Maryland (administrative proceeding) · 2005-0537

    “… 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)

    concluded

    Government 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

    “… (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.

Disclosed in the 2025 Franchise Disclosure Document

Item 4: bankruptcy

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.

Disclosure signals that moved the score

How this shows up in the verdict

  • Numerous active litigations across trademark, employment, and consumer class actions indicate systemic operational and compliance issues
  • High litigation frequency (especially wage/hour and product labeling) suggests compliance challenges that could affect franchisee liability exposure

The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.

Before you weigh a lawsuit

How to read Item 3

A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.

Questions worth asking current and former franchisees, using the contact list in Item 20:

  • Were you, or anyone you know in the system, party to a dispute with the franchisor?
  • Was it resolved by settlement, arbitration or a court, and on what terms?
  • Has the number of disputes gone up or down since you signed?