GNC
This article was originally published in The Tan Sheet
Executive Summary
Supplement retailer will expand national TV/radio/print advertising and brand awareness campaigns after eliminating franchisees' regional ad cooperative contribution requirement, firm announces March 6. Franchise store operators requested change and will save up to 2% on their required advertising commitment. GNC also announces first royalty distribution to franchisees of profits from its drugstore.com partnership. Royal Numico subsidiary will share 33% of profits realized from Internet sales with franchisees on a pro rata basis dependant on each store's yearly retail sales. GNC is facing lawsuits by current and former franchise owners alleging their ability to do business was damaged by aggressive retail pricing from corporate-owned stores and GNC's drugstore.com and Rite Aid partnerships (1"The Tan Sheet" Jan. 8, p. 10)
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Supplement retailer will expand national TV/radio/print advertising and brand awareness campaigns after eliminating franchisees' regional ad cooperative contribution requirement, firm announces March 6. Franchise store operators requested change and will save up to 2% on their required advertising commitment. GNC also announces first royalty distribution to franchisees of profits from its drugstore.com partnership. Royal Numico subsidiary will share 33% of profits realized from Internet sales with franchisees on a pro rata basis dependant on each store's yearly retail sales. GNC is facing lawsuits by current and former franchise owners alleging their ability to do business was damaged by aggressive retail pricing from corporate-owned stores and GNC's drugstore.com and Rite Aid partnerships (1 (Also see "GNC Franchisee "Predatory Pricing" Lawsuits Meritless - Retailer" - Pink Sheet, 8 Jan, 2001.)). |