General Nutrition Corporation (GNC) is a leading brand in Health and Wellness. It has a widespread global reputation with GNC franchise store. The company explains the extensiveness of the brand with the brand’s awareness and people’s desire to live well. Increasing demand for supplements is the main motivation behind the new stores all over the world. Currently, the company promotes franchises all over the world with both financial and carrier opportunities.
Information About GNC
GNC entered to the sector in 1935 with a single store in Pittsburgh. Increasing demand on the sector and especially to their products force them to offer franchises. The first franchise store opened in 1988. Since then, the brand became the forefront of franchising. Moreover, the company has been ranked as the #1 franchise in the sector.
Today, the brand has more than 8,300 stores throughout the United States and serves in 50 international markets. One of the main reasons behind the success in terms of franchisee demand is high GNC franchise profit margin.
The company has 1000 associates and 1 million square feet of production space. It also uses quality systems supporting regulatory, testing and compliance requirements. The products are clinical-proven such that they are subjected to 150 quality tests.
GNC Stores sale vitamins, minerals, prohibits and other food supplements. The products include
- Mega Men® and Women’s Ultra Mega® Multivitamins
- Triple Strength Fish Oils
- Pro Performance® AMP
- Pro Performance®
- Beyond Raw®
- Total Lean™
- Preventive Nutrition®
On the other hand, the company continues its research and development. A high budget is allocated for the development of new products to meet the needs of the customers and provide them to live well.
What Is GNC Franchise And Opportunities
GNC franchise is a license to operate a GNC retail store at a fixed location. Two types of Franchise programs are available.
- New Franchise Store: It is a new store at a location approved by GNC. GNC constructs the store unless the agreement defines otherwise.
- Conversion Store: This program is designed to convert company-owned GNC Stores to franchises. Qualified new franchisees, successful existing franchisees, employees of the Company and GNC affiliates have the right to apply for this program.
For international applications, there are two more options. You can be a franchise or a distributor.
- Franchise Agreement gives right to market or sells the products under the trademarked name of the franchisor. The agreement is a regular franchising agreement. This is binding between two sides defining the details of the rights, responsibilities, obligations etc.
- Distribution Agreement defines the rights, costs, and responsibilities of two sides in relation to the distribution of the products. A distributor purchases the products from GNC. Then this company stores the products and sells them to retailers and/or individual consumers.
What Should I Do?
For applicants in the US should follow the process below.
- Submit the online application. This process has 5 steps. The information includes your personal information, business plans, education, military status, experiences, financial statement and schedules, income sources, business references, personal references and credit references.
- Visit GNC headquarters. It will be approved if you meet the financial requirements of the Company. Otherwise, you will be informed.
- Review and sign the franchise disclosure document. You are advised to check all the points with an attorney or accountant.
- Evaluate your commitment to franchising
- Find the right location for your store
- Attend and complete the training procedure.
- Open your store.
Applicants outside the US will be connected by GNC representative if the application meets requirements.
At the end of the term, if you succeed in your operations, the agreement may renew for another five-year. As long as you succeed the GNC franchise profit has an upward trend for years, this process will continue.
Training and Support
GNC offers an extensive training program for franchisees and support. You will get expert guidance in developing your operations. Some of the training programs include
- Start-up Assistance
- Operations and in-store training
- Continuing support
The training program for new franchises includes three phases:
- Phase 1: Once you are approved as a franchise, you will be experienced a week and train at a GNC Store. The first phase takes up to 80 hours. You will be provided with an orientation to the operation of a GNC Store.
- Phase 2: You will spend another one week in GNC Headquarters in Pittsburgh.
- Phase 3: Once you open your store, a field representative of the Company will work with you during the first week.
Time to time, the franchisor may require additional training or refreshment courses.
Financing options are also available for US franchises.
Costs and Profits
Once you are applied and approved, the initial franchise fee you should pay is $40,000. The total investment needed is approximately $200,000. This includes franchise fee, equipment, signage, fixtures, construction, opening inventory and promotional materials. Certainly, it varies depending on the location and the size of the franchise. You also need at least $130,000 in liquid assets.
The service or royalty fee is 6% of the Gross Sales. It excludes any sales tax and documented refunds.
The company takes the advertisement issue as a global issue. GNC invests millions of dollars to help stores all over the world. Franchises are expected to contribute to advertising campaigns with 3% of their gross sales. ,
Furthermore, for qualified candidates on selected locations, GNC may offer financing options.
How much does a GNC franchise make depends on many different factors. Location and the performance are the main factors. The location should be approved by the GNC. Somehow you are assisted about the location. Moreover, you may be awarded a protected territory. It depends on your franchise agreement.
After a while, if you want to sell your store you can. The only requirement for sale is approval of GNC. There is a transfer fee for administrative, legal and training expenses that affect the transfer.