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GNC Franchisee Class Action Settlement Valued At $4.2 Mil.

This article was originally published in The Tan Sheet

Executive Summary

GNC's more than 1,400 domestic franchisees have until Oct. 11 to decide whether to participate in a class action settlement that ultimately could be worth as much as $4.2 mil.

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More than 75% of GNC franchisees have accepted firm's proposed class action settlement, supplement retailer announces Oct. 26. Plaintiffs filed motion for final approval Oct. 19; no objections have been voiced yet. Although GNC may terminate deal if more than 10% of its roughly 1,400 franchisees opt out, firm has indicated it will proceed regardless of the final tally. Agreement, which would resolve complaints of wholesale cost overcharges by GNC, awaits approval from Pittsburgh federal Judge Gary Lancaster and would provide each franchisee with wholesale credits on purchases of GNC products in the amount of $125 per store per month for 24 months - approximately $4.2 mil. overall (1"The Tan Sheet" Aug. 20, p. 7)

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