July 16, 2012
The GNC General Nutrition Centers franchise has a high SBA loan default rate of 23%. GNC is listed by the SBA among the worst franchises by SBA loan default.
Are you familiar with the GNC General Nutrition Centers franchise opportunity? Please share a comment below.
GNC General Nutrition Centers franchisees have received 91 SBA-guaranteed loans since 2001; nearly one-quarter of those loans have been defaulted on by GNC franchise owners.
The GNC Franchise has a failure rate of 23% for SBA-backed franchise loans
It’s likely that GNC franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and nearly a quarter were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the GNC franchise opportunity?
What do you think accounts for the SBA loan failure rate of GNC franchise owners?
What steps should GNC be taking to stop further franchise failures?
Has GNC taken serious action to address the problems that led to the 23% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A GNC FRANCHISE OWNER OR FORMER GENERAL NUTRITION CENTER FRANCHISEE? ARE YOU FAMILIAR WITH GNC FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: GNC, GNC franchise, General Nutrition Centers, General Nutrition Centers franchise, nutritional supplements, GNC complaints, GNC vitamin franchise, nutrition franchise, franchise opportunity, retail franchise, franchise failure rate, worst franchise, sba failure rates, SBA franchise loans, franchise information, unhappy franchisee
July 16, 2011
The GNC franchise opportunity ranked #40 in the 2011 Entrepreneur 500.
The GNC website boasts that it’s one of the world’s best franchise opportunities:
“GNC has been perfecting the franchise system for the past 20 years. Not only do we have over 20 years of franchise experience, but when you join our system you gain access to a company with 75 years of retail experience.
“We are proud to be able to provide franchisees with a level of support that is among the best in the specialty-retail industry.”
However, according to the Entrepreneur 500 listing, GNC U.S. franchise locations declined from 1,046 in 2007 to 892 in 2010, a net loss of 152 franchise locations.
Senior management has been preoccupied with the April, 2011 GNC public offering.
Additionally, the management team has been shaken up with recent turnover.
General Nutrition Centers president and chief merchandising officer Beth Kaplan resigned last month after 3.5 years in the role.
This month, GNC Chief Operating Officer David P. Berg resigned, effective September 2011.
Why did GNC lose 152 U.S. franchise locations in the past 3 years?
How is the Initial Public Offering and management turnover affecting GNC franchise owners?
Is the GNC franchise a strong franchise opportunity?
ARE YOU FAMILIAR WITH THE GNC FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.