GNC 2011 Annual Report Download - page 39

Table of Contents
corporate headquarters, or impact one or more of our key suppliers, our operations and financial performance could be materially adversely affected through
an inability to make deliveries to our stores and through lost sales. In addition, these events could result in increases in fuel (or other energy) prices or a fuel
shortage, delays in opening new stores, the temporary lack of an adequate work force in a market, the temporary or long-term disruption in the supply of
products from some local and overseas suppliers, the temporary disruption in the transport of goods from overseas, delay in the delivery of goods to our
distribution centers or stores, the temporary reduction in the availability of products in our stores and disruption to our information systems. These events also
could have indirect consequences, such as increases in the cost of insurance, if they were to result in significant loss of property or other insurable damage.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
As of December 31, 2010, there were 7,260 GNC store locations globally (including distribution centers where retail sales are made). In our Retail
segment, all but one of our company-owned stores are located on leased premises that typically range in size from 1,000 to 2,000 square feet. In our Franchise
segment, primarily all of our franchise stores in the United States and Canada are located on premises we lease and then sublease to our respective
franchisees. All of our franchise stores in the remaining international markets are owned or leased directly by our franchisees. No single store is material to
our operations.
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