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Franchisees must decide if $4.2 million is enough
DOWNTOWN -- Settlement notices were mailed to franchisees this week in hopes of stopping three potential class action lawsuits against General Nutrition Cos. Inc. filed by some members of its franchise system.
Now, the company's more than 1,400 franchise stores will decide to approve or opt out of a settlement valued at about $4.2 million.
The lawsuits seeking class action status -- Duarte vs. GNC Franchising, Powers vs. GNC Franchising and Kolenda vs. GNC Franchising -- have been a thorn in the company's side for the past few years.
As the company works to heal rifts with some of its franchisees over issues such as territory and predatory pricing, more than 90 percent of the franchisees must approve the settlement for it to take effect.
Claiming to represent 200 …