986 PharmacyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A 986 Pharmacy franchise requires a total initial investment of $279K – $671K, including a $75K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 10 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $279K – $671K
- 53rd pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- N/A
- Units
- 44
- 54th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
The system grew 56% year-over-year. Fast growth means demand, but can strain support.
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.
- Verdict A (Top Quintile) with a risk score of 49/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- 986 Degrees Corporation
- Incorporated in
- CA
- HQ
- 2476 Huntington Drive, San Marino, CA 91108
- Auditor
- Mutschler Accountancy Corporation
- Audited financials
- Franchisor revenue
- $1.5M
- vs $3.5M prior year
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.
- CEO
- Khanh-Long Thai
- Headquarters
- CA
- Founded
- 2014
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Furniture Fixtures and Equipment | $20K | $120K | |
| Tenant Improvements | $15K | $150K | |
| Computer System | $3K | $12K | |
| Rent deposit | $0 | $20K | |
| Insurance | $2K | $8K | |
| Inventorynot refundable | $65K | $110K | |
| Professional License fee | $1K | $2K | |
| Travel, Food and Lodging while attending training | $2K | $5K | |
| Signage | $1K | $10K | |
| Pre-opening Advertising | $1K | $10K | |
| Professional Services | $5K | $15K | |
| Additional Funds - First 3 months | $130K | $160K | |
| Total initial investment | $320K | $696K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $279K – $671K
- Near category avg vs category
- Liquid capital req'd
- $130K – $160K
- Below avg, review vs category
- Franchise fee
- $75K – $75K
- Below avg, review vs category
- Royalty
- $1,650 per month for the first 12 months, then $2,100 per…
- Ad fund
- -n/d
- Total fee load
- 0.3%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Transfer fee | $5K |
| Renewal fee | $2K |
| Total fee load | 0.3% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Healthcare averages
How 986 Pharmacy Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 44
- Opened
- 15
- Last reporting year
- Closed
- 1
- Turnover rate
- 2.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +56.0%
- Net unit change last year
- 3-yr CAGR
- +129.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $5.3M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into 986 Pharmacy's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 6-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Mutschler Accountancy Corporation
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 49 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 14 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 2 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 125 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- POS system
- Digital Rx
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Digital Rx
Item 20 · call current owners
Franchisee Contacts
36 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
986 Pharmacy · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a 986 Pharmacy franchise?
The total investment to open a 986 Pharmacy franchise ranges from $279K – $671K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do 986 Pharmacy franchise owners earn?
986 Pharmacy does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is 986 Pharmacy's franchise failure rate?
Based on SBA 7(a) loan data, 986 Pharmacy has a charge-off rate of 0.0% across 10 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many 986 Pharmacy franchise locations are there?
As of their most recent FDD filing, 986 Pharmacy has 44 total units in the United States, including 17 franchised units and 0 company-owned units. 15 new units were opened in the latest reporting year.
Is 986 Pharmacy a good franchise to buy?
FranchiseVerdict rates 986 Pharmacy as a A-grade franchise with a risk score of 49 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.