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GNC Lowers Ad Costs For Franchisees

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1 min read
Opinions expressed by Entrepreneur contributors are their own.

Pittsburgh-General Nutrition Companies Inc. has eliminated its regional advertising cooperative contribution requirement for franchisees and is expanding its national ad campaigns to focus on GNC brands. The move allows franchisees to realize significant cost savings-instead of paying up to 6 percent of revenues, they now pay no more than 3 percent, while enjoying the benefits of a major, nationwide advertising initiative.

"GNC has always listened to the concerns of its franchisees, and we are responding by expanding our national advertising campaign," says Russell L. Cooper, GNC franchising senior vice president and general manager. "Not only are we supporting franchisees with advertising at the national level, we also eliminated the regional advertising requirements, allowing individual franchise store operators the choice to invest their savings into their own local marketing efforts or apply it directly to the profits of their stores."

In 2001, national gross media dollars spent on GNC brands will increase to $40 million, delivering 5.5 billion impressions to GNC's main target audience, adults 25 and older. The increase comes from the shift in regional advertising dollars from the local markets to a more expansive national campaign. The move increases GNC's national brand exposure while reducing franchisee expenses. -GNC Inc.

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