At a Glance
Products & Services: Vitamins and nutrition products
Number of Locations: 6,607
Total Investment: $167.9K - $294.5K
Began Franchising: 1988
About GNC FranchisingIn 1935, David Shakarian started a health-food store in Pittsburgh called Lackzoom. It specialized in yogurt (which his father had helped introduce to the U.S.), but also carried health-food products such as honey and grains. Beginning with $35 in receipts his first day, Shakarian expanded to six Pittsburgh-area stores in five years.
As more people became interested in natural foods and better nutrition, Shakarian opened stores in other states and changed the company's name to General Nutrition Centers (GNC). GNC also began producing its own vitamin and mineral supplements, foods, drinks and cosmetics. They started franchising in 1988. With company and franchised stores throughout the U.S. and worldwide, GNC now focuses on vitamins and nutritional supplements.
Startup Costs, Ongoing Fees and Financing
Franchise Fee: $40,000
Ongoing Royalty Fee: 6%
Term of Franchise Agreement: 10 years, renewable
Veteran Incentives: 50% off first-store franchise fee
Financial RequirementsNet Worth: $150,000 - $200,000
Liquid Cash Available: $85,000 - $100,000
Operations39% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 3 - 4. Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators).
|Financing Type||In-House||Third Party|