Bottom line
- Total investment $279K – $671K including a $75K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 16 loans (below the industry average).
- System growing at 129.4% CAGR over 3 years with 44 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one 986 Pharmacy unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Overview
About
Franchisees operate independent pharmacy retail locations offering prescription filling, medication counseling, OTC products, and ancillary services (compounding, vaccinations, etc.). Day-to-day operations include managing licensed pharmacist staff, handling DEA-regulated inventory, processing insurance claims, maintaining compliance with state pharmacy boards, and managing customer relationships.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
986 Pharmacy presents significant financial opacity and regulatory credibility issues, compounded by unprotected territories and escalating fees, making this a high-risk investment without disclosed performance benchmarks.
Score breakdown · what drove the 54 / 100 rating
- 01MINORNo financial disclosure (Item 19) — average revenue and net income not provided, making ROI impossible to validate
- 02HIGHGoing Concern status is FALSE — indicates potential financial instability or regulatory concerns at corporate level
- 03MINORTwo senior directors (including likely owner/operator) had pharmacy license probation (2019-2020) — raises compliance and management credibility concerns
- 04MINORUnprotected territory — franchisees face direct competition from other 986 Pharmacy locations and independent pharmacies
- 05MEDHigh initial investment ($279K-$671K) with no disclosed profitability benchmarks to justify risk
- 06MINORRapid unit growth (56% YoY) with only 44 total units — suggests aggressive expansion without mature proven model
- 07MEDEscalating royalties ($1,650→$2,100/month, 27% increase) may compress already-undisclosed margins
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
36 numbers
One-time purchase · CSV download · Validation questions included
FDD download
986 Pharmacy · FDD (2025) PDF