FDD Talk Daily: Average Gross Retail Sales of Franchised GNC Stores

Highlights of GNC’s Item 19 Financial Performance Representations (2012 FDD)

• The franchise offered is for the establishment and operation of a GNC retail store specializing in the sale of vitamins, minerals, and other food supplements, natural cosmetics, and other health management items.

• The total investment necessary to begin operation of a new GNC franchise store ranges from $160,150 to $274,350; to convert a company-owned store to a franchise store ranges from $99,150 to $313,850; and for an independent health food/nutrition store to convert to a GNC franchise store ranges from $77,400 to $176,350.

• This includes the following amounts that must be paid to the franchisor:  $149,500 to $251,000 for a new franchise store; $120,500 to $260,500 to convert a company-owned store to a franchise store; and $66,750 to $143,000 to convert an independent health food/nutrition store to a GNC franchise store.

Average Gross Retail Sales

• Below is certain historical financial information regarding GNC stores operated by franchisees that operated within the United States from January 1, 2011 through December 31, 2011 (the company’s fiscal year).

• Of the 924 franchise-operated stores that were open and operating in the United States as of December 31, 2011, 862 or 93.3% of those had been in business continuously throughout the fiscal year 2011.

• No data has been presented for the franchise stores that were terminated, reacquired, not renewed, or left the system for other reasons during the last fiscal year.

• None of the information presented in this Item includes data from GNC stores operated by the franchisor or GNC/Rite Aid or from GNC stores located on military bases.

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