Content area
Full Text
DOWNTOWN - A discount card is the latest point of contention between General Nutrition Cos. Inc. and a contingent of unhappy franchisees.
With millions in circulation, GNC's Gold Card has been a focal marketing tool for the nutritional supplement retailer for years, allowing its customers to obtain 20 percent discounts when shopping at GNC stores the first Tuesday of each month.
Yet more GNC franchisees the company believes 50 to 100, franchisees say 200 - are now offering their own discount cards along with the company cards.
And GNC wants it to stop.
" ...Due to a recent proliferation of alternate cards, GNC has decided in the best interests of the entire GNC system to halt the use of promotional cards other than the time-tested GNC Gold Card," stated a letter to a GNC franchisee written by Russ Cooper, senior vice president of GNC Franchising, Inc.
Mr. Cooper continued: "We believe such cards have a negative impact on the GNC system, including creating confusion for GNC customers, conflict within the franchisee community and, most importantly, those cards detract from the consistency and uniformity requirements of the GNC operating system to the detriment of other GNC stores."
While some franchisees claim they have been offering their own cards for about three years, the practice began to become more widespread in 2000.
And to some franchisees, Mr. Cooper's words could be worth fighting over.
"It's safe to say that we will challenge it all the way," said Daniel Brandt, a franchisee based in Silverdale, Wash., who was one of the first GNC franchisees to offer his own card. "This is one battle that we must make a stand on because our financial futures depend on it."
CASH, CARDS AND CUSTOMERS
While Gold Card Tuesdays are an integral part of the GNC brand, the card issue represents both dollars and customers.
Of first concern is the cost of the cards themselves. Franchisees said GNC at one time charged...