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News Briefs

BY ALM Staff
October 01, 2003

GNC, Franchisees Continue Court Battles

More than 350 franchisees of vitamin-store chain General Nutrition Centers, Inc. (GNC) have banded together as the GNC Franchisee Association, Inc., in order to sue the company for misuse of advertising and reset fees and predatory pricing. The lawsuit, filed in May 2003, indicates that the settlement of three class action lawsuits against GNC in 2001 did little to end the bad blood between the company and its franchisees. GNC and its corporate parent, the Dutch firm Royal Numico NV, are named as defendants.

The latest lawsuit was filed in Superior Court in New Brunswick, NJ, and was transferred to the U.S. District Court for the Western District of Pennsylvania in August. At a case management conference in September, the judge asked both parties to submit briefs about a possible change in venue back to New Jersey or elsewhere.

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