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GNC Franchising

The franchise described by GNC in the offering circular is for the establishment, ownership, and operation of a single GNC retail store specializing in the sale of vitamins, minerals and
other food supplements, natural cosmetics and other health management items. Franchisees also have the option to include within the franchise store a GNC Smoothie Bar, which specializes in the sale of drinks blended with fruit, juice, and nutritional supplements.

The offering circular states that the initial franchise fee for a new GNC store - or to convert an affiliate-owned store into a GNC store - is $40,000 for a new franchisee; $30,000 for an existing franchisee; and $20,000 for a GNC employee of an affiliate under GNC’s employee program. The initial franchise fee for an independent health food/nutrition store that converts to a GNC franchise store is $7,500.

The offering circular also states there is no initial franchise fee for additional new GNC stores opened by an existing franchisee within the protected territory described in the Franchise Agreement. However, there is an additional initial franchise fee of $5,000 to add a GNC Smoothie Bar to a franchise store.

The franchisor estimates that the initial investment to establish a new GNC store ranges from $131,104 to $227,504, while the initial cost to convert a company-owned store to a franchise store ranges from $81,604 to $260,504. The cost of converting an independent health food/nutrition store into a GNC franchise store is estimated to range from $69,854 to $168,004. The offering circular also states that the cost of adding a GNC Smoothie Bar to a franchise store ranges from $32,150 to $53,800.

GNC Franchising's Franchise Resources

UFOC 5-9 11-12 17-19

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