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 & 4 at a glance
What the filing discloses
- Cases disclosed
- 7
- Item 3, as counted in the filing
- Largest disclosed settlement
- $9.0M
- 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).
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
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.
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
- Going concern status raises questions about franchisor's financial stability and ability to support franchisees long-term
- 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?