GNC Franchise: Unethical Actions and Complaints

Written by: Patrick Findaro
Last Updated by Brenda Bagnoli: August 25, 2022
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GNC is a global company specializing in the sale of health and nutrition-related products. Including vitamins, supplements, minerals, herbs, sports nutrition, and diet products. They have over 9000 stores in more than 50 countries, making them one of the largest retailers of nutritional supplements in the world. In addition to its brick-and-mortar stores, GNC also has an online presence and sells its products through third-party retailers. 

GNC: What happened? 

GNC Franchise has been the center of many complaints due to its unethical and illegal actions. They have a history of breaching the implied covenant of good faith and fair dealing, which has led to the ruination of their brand. Because they are in financial trouble, they continue to take money from their franchisees, oftentimes through intimidation tactics. This has led to the formation of a Franchisee association, as most franchisees feel that they cannot stand up to GNC on their own. 

If this isn't the biggest case of franchise fraud in America, I don't know what it is. My original suit was filed in February of 2018 and since then I have discovered even more egregious actions by GNC

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“…Breaching the Implied Covenant of Good Faith and Fair Dealing and Ruination of the Brand. When you buy a franchise, you are basically buying the brand. Through the nefarious actions GNC has admitted publicly and by 2 different CEO’s these actions have definitely tarnished the brand”

...Most franchisees are intimidated by GNC and fear retaliatory and legal action from GNC. Additionally, I was able to discover that GNC continued to sell franchise locations to unsuspecting prospects under a Franchise Agreement that they felt protected them so they deemed any of their actions protected 

Source: Organization (3/17/2019) 

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