{"id":19363,"date":"2024-09-30T20:00:40","date_gmt":"2024-10-01T01:00:40","guid":{"rendered":"https:\/\/www.gnc.com\/learn\/?p=19363"},"modified":"2024-09-27T09:54:57","modified_gmt":"2024-09-27T14:54:57","slug":"gnc-arbitration-awards","status":"publish","type":"post","link":"https:\/\/www.gnc.com\/learn\/newsroom\/gnc-arbitration-awards.html","title":{"rendered":"GNC Secures Arbitration Awards in Cases Against ONI\/LAC Global"},"content":{"rendered":"<p><strong>PITTSBURGH, October 1, 2024<\/strong> <strong>\u2013<\/strong> GNC Holdings, LLC (\u201cGNC\u201d), the leading global health and wellness brand, announced that the International Centre for Dispute Resolution notified GNC of an award in its arbitrations against ONI Global Pte. Ltd., LAC Global (Singapore) Pte. Ltd., ONI Distribution Corporation, and Total Nutrition Corporation (collectively, \u201cONI\/LAC Global\u201d) involving GNC franchises in Singapore and the Philippines.<\/p>\n<p>The awards order ONI\/LAC Global to pay GNC damages in the amount of US$5.28M for breaching their franchise agreements with GNC in the Philippines, and US$39.39M in net damages for breaching their franchise agreements with GNC in Singapore.\u00a0 In addition, the Singapore award orders ONI\/LAC Global to assign the leases to 54 former GNC stores that ONI\/LAC Global inappropriately novated and switched to LAC stores. Finally, the Tribunal found GNC to be the \u201cprevailing party\u201d in both Philippines and Singapore, and accordingly ordered ONI\/LAC Global to pay a total of $8,734,787.15 related to GNC\u2019s attorneys\u2019 and administrative fees.\u00a0 GNC has moved to confirm and enforce the awards. The confirmation cases are pending in the U.S. District Court for the Western District of Pennsylvania (Case Nos. 2:2024cv01279 and 2:2024cv01280).<\/p>\n<p>The awards highlight GNC\u2019s commitment to enforcing the terms of its franchise agreements and protecting its franchise system and brand globally. The tribunal found that ONI\/LAC Global breached its franchise agreements with GNC in multiple ways, including:<\/p>\n<ul>\n<li>Transferring operational control of GNC stores in Singapore to a competing brand, LAC, without GNC\u2019s approval.<\/li>\n<li>Continuing to use GNC\u2019s proprietary marks and sell GNC products after terminating the agreements without cause.<\/li>\n<li>Failing to meet its Minimum Purchase Amount obligations.<\/li>\n<li>Selling products that GNC had expressly disapproved.<\/li>\n<\/ul>\n<p>Further, the Tribunal found that ONI\/LAC Global\u2019s counterclaims virtually all fail, including:<\/p>\n<ul>\n<li>GNC\u2019s disapproval of direct purchase product did NOT breach the agreement<\/li>\n<li>GNC\u2019s price increases did NOT breach the agreements<\/li>\n<li>Product order delays did NOT breach the agreements<\/li>\n<li>GNC did NOT breach its implied duty of good faith and fair dealing<\/li>\n<\/ul>\n<p>These actions by ONI\/LAC Global violated the agreements and damaged GNC\u2019s brand and reputation. GNC remains committed to being the global leader in health and wellness and will seek to ensure that all franchise partners are aligned with GNC values and operational standards.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Media Contact:<\/strong><\/p>\n<p>Nick Sero<\/p>\n<p>Director of Public Relations<\/p>\n<p><a href=\"mailto:media@gnc-hq.com\">media@gnc-hq.com<\/a><\/p>\n<p>412-246-9901<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>About GNC<\/strong><\/p>\n<p>GNC is a leading global health and wellness brand that provides customers with a wide variety of science-based products and solution services to Live Well. The brand touches consumers worldwide by providing its products and services through company-owned retail locations, domestic and international franchise locations, digital commerce and strong wholesale and retail partnerships across the globe. GNC\u2019s diversified, multi-channel business model has worldwide reach and a well-recognized, trusted brand. By combining exceptional innovation, product development capabilities and an extensive global distribution network, GNC manages a best-in-class product portfolio.<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=4092420-1&amp;h=959830932&amp;u=https%3A%2F%2Fc212.net%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4072734-1%26h%3D3166385365%26u%3Dhttps%253A%252F%252Fc212.net%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D4015337-1%2526h%253D2756797034%2526u%253Dhttp%25253A%25252F%25252Fwww.gnc.com%25252F%2526a%253D%252Bwww.gnc.com%26a%3D%25C2%25A0www.gnc.com&amp;a=%C2%A0www.gnc.com\"><strong>\u00a0www.gnc.com<\/strong><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PITTSBURGH, October 1, 2024 \u2013 GNC Holdings, LLC (\u201cGNC\u201d), the leading global health and wellness brand, announced that the International Centre for Dispute Resolution notified GNC of an award in its arbitrations against ONI Global Pte. Ltd., LAC Global (Singapore) Pte. Ltd., ONI Distribution Corporation, and Total Nutrition Corporation (collectively, \u201cONI\/LAC Global\u201d) involving GNC franchises [&hellip;]<\/p>\n","protected":false},"author":94,"featured_media":19364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2139],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>GNC Secures $45M Arbitration Awards Against ONI\/LAC Global<\/title>\n<meta name=\"description\" content=\"GNC has been awarded $45M in damages in arbitration cases against ONI\/LAC Global for breaching franchise agreements in Singapore and the Philippines. 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