Is the GNC Franchise a Great Opportunity?

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?

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