GNC Puts Ad Plans on Hold

GNC Puts Ad Plans on Hold

PITTSBURGH--The Allegheny County Common Pleas court has stalled a vote that would change the proportion of dollars spent on local and national advertising for General Nutrition Centers (GNC). The Independent Association of General Nutrition Franchisees accused Pittsburgh-based GNC of rushing through proposals that allocate ad dollars to a national campaign that would benefit corporate stores but would not include franchised stores. Dependent on the franchisees' votes, GNC had proposed eliminating regional advertising cooperatives that use funds from franchise contributions (which account for 2.5 to 3 percent of their gross sales) and instead use that money for national ads to build brand identity.

GNC had hoped to institute its plans by late February, but Judge Cynthia Baldwin told the company that the voting would remain on hold until future hearings can be set. For additional information, visit www.gnc.com.