GNC Franchise Costs, Fees & FDD

Year Business Began: 1935

Franchising Since: 1935

Headquarters: Pittsburgh, Pennsylvania

Estimated Number of Units: 3,705

Franchise Description: The franchisor is GNC Holdings, LLC. GNC stores are retail health, wellness and performance stores that offer for sale vitamin and mineral supplements (some of which will be sold under the “GNC” brand or other proprietary brands the franchisor may create and develop from time to time), and, depending on the store size, franchisee preferences, and the franchisor’s requirements, may offer for sale sports nutrition products, herbs, health foods, beauty and miscellaneous healthcare products, diet products, physical fitness products, specialty workout apparel, health-management products, and related products, as approved for sale by the franchisor from time to time. The franchisor currently offers the following franchise programs:

1. New Franchise Store: A new franchise store may be awarded to a qualified person who is new to the GNC system; who is an existing franchisee; or who is an employee of GNC or an affiliate pursuant to the GNC employee program. A new franchise store will be a new store constructed by GNC (unless the franchisor designates otherwise in writing) at a location approved by the franchisor.
2. Conversion Store: This program is to convert company-owned GNC stores to franchised GNC stores. This program is available to qualified new franchisees, existing franchisees, and employees of GNC or GNC affiliates pursuant to the GNC employee program.

Training Overview: Franchisees must successfully complete all phases of initial training to the franchisor’s satisfaction to be eligible to open their store. To successfully complete Phase I training, franchisees will be required to spend 40 hours of on-the-job training in a company-owned GNC store and, in the franchisor’s sole discretion, depending on their experience with GNC store operations, up to 16 hours visiting franchised GNC stores with their Director of Franchise Operations. This training will provide franchisees with an orientation to the operation of a GNC store. Phase II training requires that franchisees attend up to a five-day training program, which may, depending upon the situation, take place virtually or in person at the franchisor’s Franchise Support Center in Pittsburgh, Pennsylvania or such other location designated by the franchisor. Phase III training for a new franchise store for a new franchisee is an up to seven-day process at the franchisee’s store. This training takes place when the grand opening shipment is scheduled to be received, and includes receiving the initial delivery and setting the store up for opening. The franchisor does not require any additional initial training if franchisees successfully complete Phase I Phase II and Phase III training. At its option, the franchisor may require any manager subsequently employed by franchisees to attend and complete to its sole satisfaction the initial training program. The franchisor may require that franchisees attend additional training programs or periodic refresher courses at such times and places as the franchisor designates.

Territory Granted: In the Franchise Agreement, the franchisor grants the right to operate a store at a specific location once it is approved. The franchisor grants franchisees a territory within a particular radius measured from the public entrance to the store (not the mall or strip center entrance), referred to as the “protected territory,” for a specified period of time (typically one year). The franchisor reserves certain rights, but for that specified period of time it will not establish either a company-owned or franchised GNC store physically located within the protected territory. The size of the protected territory will vary depending on a number of factors, including demographic barriers, market strength measured by various market data profile studies, population density, median income per household, and the categories of products to be offered at the store, particularly in relation to the competition in the relevant market.

Obligations and Restrictions: The franchisor encourages franchisees to participate personally in the on-premises supervision of their GNC store. While the franchisor does not require franchisees to personally participate in the direct supervision of the GNC store, it does require either franchisees or their designated manager to directly supervise the GNC store on its premises and to devote full-time, energy and best efforts to managing the store. Franchisees may sell only products and services which the franchisor has approved and which conform to the franchisor’s standards and specifications. Franchisees must offer GNC Brand Supplements and other products for sale as described.

Term of Agreement and Renewal: The length of the initial franchise term is five years. If franchisees meet the requirements, they can renew their franchise for additional, consecutive five-year terms.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any note, lease or any other obligation franchisees may incur. The franchisor does not finance ongoing store operations, nor does it finance any new or existing franchisees that purchase existing franchised stores. The franchisor may in its sole discretion extend credit to qualified franchisees for the ongoing purchase of inventory.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$20,000	$20,000
Security Deposit	$2,500	$2,500
Point-of-Sale (POS) & Peripherals and iPad & Peripherals	$3,500	$7,000
Computer and Printer	$1,000	$2,000
Signage	$8,500	$20,000
Fixtures	$7,500	$38,000
Construction and Other Store Costs	$35,000	$250,000
Pre-Construction Architectural and Engineering Consulting Fees	$5,000	$7,500
Project Management Fee	$5,000	$5,000
Opening Inventory	$80,000	$85,000
Utility Security Deposits (variable)	$1,500	$3,000
Business and Worker's Compensation Insurance	$2,500	$10,500
Training Expenses	$1,500	$3,000
Miscellaneous Opening Costs	$3,000	$4,000
Rent/Leasehold Space – 1 month	$1,219	$19,042
Additional Funds—3 months	$10,000	$30,000
ESTIMATED TOTAL (for a new franchise store)	$187,719	$506,542

 
Other Fees

Type of Fee	Amount
Royalty	6% of total gross sales.
National Advertising	3% of total gross sales.
Transfer Fee—Franchise Agreement	Transfer fee not to exceed then-current undiscounted initial franchise fee for new franchisees for a new store, except that the fee will be: (1) $1,000 if they transfer all or a controlling interest in their franchise to an entity that they own (or that is owned by, or under the same ownership as, the existing franchisee), or if the transfer is to an immediate family member; or (2) $2,500 if the transfer is of less than 50% of their ownership interest in the franchise or the existing franchisee.
Transfer Fee—Development Agreement	$10,000
Franchise Store Relocation Fee	$10,000 or such greater amount as the franchisor may determine from time to time, to cover its administrative and other costs in processing the relocation.
Remodeling	$25,000 to $150,000
Insurance Reimbursement Fee	$500 per occurrence.
Late Payment Charges	1.5% interest per month on overdue amount.
Insufficient Funds Fee	$30 per occurrence.
Store Technology Maintenance	$75 per month (first register); $25 per month (second register).
Network Connection	$233 per month.
Credit Card Processing (EMV, Secure)	$16 per month.
In-Store Wi-Fi	$18 per month.
Cellular Plan	$16 per month.
Financial Services	If the franchisor chooses to provide these services and franchisees opt to or are required to use them, they will pay the monthly fee(s): approximately $345 per month for one store; $320 per store for 2-5 stores; $295 per store for 6-9 stores; $245 per store for 10-14 store; $220 per store for 15+ stores.
Franchise Renewal	$12,500
Audit	If an audit discloses an understatement of 3% or more in any report of gross sales, the franchisee must reimburse the franchisor for all costs and expenses of the audit.
Sublease Rent	Will vary depending on rent and other costs under the sublease. Only applies if the franchisee is subleasing the store premises from the franchisor.
Indemnification	Will vary depending on the circumstances.
Attorneys' Fees and Costs	Will vary depending on the circumstances.
Liquidated Damages	Will vary depending on the circumstances.
Default Cure Fee	Up to $1,000 per occurrence, depending on the infraction.
Annual Inventory Fee	Currently $540.
Non-Compliance Management Fee	25% of total gross sales.
Operating Management Fee	$2,000 per week.
Securities Offering Fee	$5,000

The above information has been compiled from the FDD of GNC. Year of FDD: 2025.
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