Updated April 20, 2020.
Detailed Estimates of GNC Franchise Costs Based on Item 7 (Estimated Initial Investment) of GNC’s 2019 Franchise Disclosure Document
1. Initial Franchise Fee: $20,000 to $40,000
- A New Franchise Store may be awarded to a new franchisee, an existing franchisee, or an employee of the franchisor or its affiliates pursuant to its employee program. The initial franchise fee for a New Franchise Store is $40,000 for a new franchisee; $30,000 for an existing franchisee; and $20,000 for an employee.
2. Point-of-Sale System: $1,725 to $5,700
- The cost for one POS system is approximately $1,725 to $5,700. The price given does not include tax or shipping charges. You must sign the POS License Agreement and pay the POS maintenance fees.
3. Computer and Printer: $1,000 to $2,000
- The franchisor also requires you to purchase a computer and printer so that you may participate in its Franchise Portal, a secure website that allows you to receive company news, communicate with franchisees electronically, pose questions to the franchisor and its affiliates, etc.
- The franchisor does not charge a fee for the Franchise Portal; however, to participate in the program, you must have access to the Internet.
4. Secure Payment System: $500
- The cost for the POS secure payment system is $500.
5. Retail Tablet: $1,500
- The cost of a retail tablet is approximately $1,500.
6. Signage: $0 to $13,000
- All GNC Stores are required to have approved exterior signs featuring the company’s trademarks to identify the location. Manufacturing and installation of signage must adhere to landlord and local regulations.
7. Fixtures: $7,500 to $35,000
- Fixtures include, but are not limited to, the wall units, cash wrap, gondolas, track lighting, and accent lighting.
8. Construction Costs: $12,000 to $132,000
- The franchisor, or a contractor approved by the franchisor, will install wiring, flooring, fixtures, and decor items which comply with its specifications. The franchisor will hire outside firms to prepare architectural, electrical, and mechanical drawings which comply with applicable governmental building codes and regulations.
- The cost will vary depending on the location and condition of the premises, the type of Store you will franchise, the requirements of the landlord for the Store location, and the building code requirements of your area.
- Shipping and installation costs are included in the construction estimates.
- Although the franchisor does not do so at the present time, it reserves the right to charge you a fee for rendering Store layouts and design plans in the future.
9. Opening Inventory: $85,000
- Opening inventory includes a supply of inventory items with a wholesale cost of approximately $85,000 for a New Franchise Store. Your store at all times must maintain its opening order inventory value to ensure an adequate stock of inventory.
- If you qualify, the franchisor may offer, in its sole discretion, financing for opening inventory, signage, equipment, fixtures, and other construction costs.
10. Construction Handling Fee: $3,000
- For a New Franchise Store, you must pay the franchisor a Construction Handling Fee of $3,000 for non-stamped architectural drawings, GNC procurement, and project management.
11. Security Deposits: $1,500 to $3,000 (variable)
12. Business and Workers’ Compensation Insurance: $860 to $8,430
- Business and workers’ compensation insurance costs average approximately $3,530 per year, but the range is from $860 to $8,430 per year.
13. Training Expenses: $1,500 to $3,000
- The cost of initial training is included in your franchise fee; however, you must pay for your lodging, travel, and additional expenses incurred by traveling to Pittsburgh, Pennsylvania, where Phase II training is held.
14. Miscellaneous Opening Costs: $3,000 to $4,000
- Miscellaneous opening costs include the costs of various supplies, including cleaning supplies, bathroom supplies, office supplies, and other general supplies necessary to operate your Store.
15. Rent/Leasehold Space: $637 to $22,500
- Generally, you must sublease your space from the franchisor.
- The cost per square foot of commercial space varies considerably depending on the location and market conditions affecting commercial property. However, in general, you must pay base rent, common area maintenance charges, and real estate taxes.
- Depending on lease requirements, you may also have to pay a rental deposit when the lease begins, in addition to other occupancy costs such as insurance, utilities, promotional fund charges, and merchant’s association charges.
- The expenditure range for this item includes estimated charges for one month for base rent, common area maintenance charges, real estate taxes, and other charges including deposits, utilities, and merchant’s association charges, and is based upon Stores that have been opened in strip center locations.
16. Additional Funds – 3 Months: $10,000 to $30,000
- The requirement for Additional Funds varies depending on the type and size of the Store you will open. This is the minimum amount of working capital the franchisor recommends you have on reserve to pay for the first three months of operational expenses, including rent, organizational costs, deposits, business licenses, insurance, replacement of inventory, POS maintenance fees, and salaries when you begin operations. These expenses include payroll costs.
- These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business.
17. Total: $149,722 to $388,630
- The cost estimates given in this table are based upon corporate and franchised Stores that have been opened in strip center locations. The figures in this table are approximations only.