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D68/100FDD 2026

Good Neighbor Pharmacy — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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Elevated Risk

8 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
8
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
11
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$23.1M
Avg loan size
$2.1M
Participating lenders
5

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Pennsylvania
State whose law governs disputes — relevant if you're not based there

What drove the 68/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (2,361 units, -4.6% YoY) indicates contracting franchise system with potential saturation or performance issues
  2. 02HIGHExtensive litigation history including False Claims Act settlements, opioid distribution MDL settlements, public nuisance verdict, and DOJ Controlled Substances Act violations creates significant legal and operational risk
  3. 03HIGHGoing Concern status is FALSE — indicates substantial doubt about franchisor's ability to continue operations, threatening franchisee support and brand viability
  4. 04MINORNo average revenue or net income disclosure (Item 19) prevents prospective franchisees from assessing realistic earning potential and ROI
  5. 05MINORUnprotected territory with $599 monthly royalty creates competitive vulnerability; franchisor can saturate your market without compensation
  6. 06MINORWide investment range ($43,797 – $575,205) suggests highly variable unit economics and unclear capital requirements
  7. 07MEDZero franchise fee indicates potential financial weakness of franchisor and limited resources for franchisee support and system development

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.