HEALTH MART Drugstore Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Health Mart is a franchise network of independently owned community pharmacies filling prescriptions and selling health and wellness products. Backed by distributor McKesson, franchisees run local drugstores managing pharmacy staff, insurance claims, and inventory.
FranchiseVerdict summary · 2026
A HEALTH MART Drugstore franchise requires a total initial investment of $262K – $799K. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 5.3% charge-off rate across 21 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $262K – $799K
- 53rd pct Healthcare
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 4,544
- 81st pct Healthcare
- SBA charge-off
- 5.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $262K – $799K.
- RETURNSTotal net sales and other revenues for FY ended March 31, 2024 comprised franchise fees, merchandise revenue and other ($24,721,069) plus channel management service fees ($14,500,289).
- RISKVerdict A (Strongest tier), verdict score 61/100 (higher is better). SBA loan charge-off rate of 5.3% across 21 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG432 units terminated last reporting year (9.5% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Health Mart Systems, Inc.
- Parent company
- McKesson Corporation
- CEO title
- President of Health Mart
- Crystal Lennartz
- Incorporated in
- Delaware
- HQ
- 6555 State Hwy 161, Irving, Texas 75039
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $39.2M
- vs $33.8M prior year
Affiliated brands
- Strategic Health Alliance II
- McKesson Technologies
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Crystal Lennartz
- Headquarters
- TX
- Founded
- 1997
- FDD year
- 2024
- States available
- 50
Can you afford it, and what does the money buy?
Entry cost runs 28% above the typical healthcare franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $87K | $280K |
| Equipment, build-out, other | $175K | $519K |
| Total initial investment | $262K | $799K |
Source: HEALTH MART Drugstore 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $262K – $799K
- Middle of category vs category
- Liquid capital req'd
- $87K – $280K
- Bottom third — review vs category
- Franchise fee
- N/A
- Top 40% of category vs category
- Royalty
- $390 per month flat Monthly Fee (covers Core Services; no…
- Ad fund
- No advertising fund currently required; franchisor may es…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $390 per month flat Monthly Fee payable on the 10th day of each month |
| Inventory (initial) | $60K – $180K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
HEALTH MART Drugstore did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one HEALTH MART Drugstore unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Total net sales and other revenues for FY ended March 31, 2024 comprised franchise fees, merchandise revenue and other ($24,721,069) plus channel management service fees ($14,500,289).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -3.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare averages
How HEALTH MART Drugstore Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4,544
- Opened
- 459
- Last reporting year
- Closed
- 141
- Terminated
- 432
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 12.6%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -3.1%
- Net unit change over 3 years
- 3-yr CAGR
- -3.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 459
- Closed (3yr)
- 141
- Terminated (3yr)
- 432
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 63
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 6.6%
- Franchisor-initiated terminations
- Ceased ops
- 3.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 21
- Loan volume
- $5.4M
- Median loan
- $257K
- average
- Charge-off rate
- 5.3%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 1
Vintage analysis
HEALTH MART Drugstore charge-off rate by loan vintage
Top lenders financing HEALTH MART Drugstore franchisees
Showing 3 of 16 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into HEALTH MART Drugstore's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 16 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 5.3% — 67% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
HEALTH MART operates a declining franchise system under a parent company embroiled in multi-billion dollar opioid litigation, with undisclosed financials, unprotected territory, and unclear unit economics making risk assessment impossible.
Litigation (Item 3)
One opioid MDL case (In re: National Prescription Opiate Litigation, No. 1:17-md-02804-DAP) involving Parent McKesson Corporation as defendant; massive multi-billion dollar settlements reached with states, tribes, and subdivisions; approximately 5 remaining federal controlled-substance cases naming the franchisor directly.
Largest disclosed settlement: $152
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 61 / 100 verdict
- 01HIGHParent company (McKesson) facing billions in opioid litigation settlements with 400+ related cases creating systemic reputational and financial risk
- 02MINORFranchise system declining 2.4% YoY with 4,544 units, indicating contracting market rather than growth opportunity
- 03MINORUnprotected territory creates direct competition risk from other HEALTH MART franchisees in same market
- 04MINORExtremely low franchise fee ($0) combined with $390/month royalty suggests franchisor prioritizes volume/royalties over franchisee profitability
- 05MINORUnknown franchise term creates uncertainty around renewal, buyout, and long-term planning
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Allowed renewalsℹ | 24 |
|---|---|
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Arbitration location | Texas |
| Jury trial waiver | Yes |
| Governing law | TX |
| Litigation count | 1 |
View Item 3 litigation summary
One opioid MDL case (In re: National Prescription Opiate Litigation, No. 1:17-md-02804-DAP) involving Parent McKesson Corporation as defendant; massive multi-billion dollar settlements reached with states, tribes, and subdivisions; approximately 5 remaining federal controlled-substance cases naming the franchisor directly.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual/teleconference
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
HEALTH MART Drugstore · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a HEALTH MART Drugstore franchise?
The total investment to open a HEALTH MART Drugstore franchise ranges from $262K – $799K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do HEALTH MART Drugstore franchise owners earn?
HEALTH MART Drugstore 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 Item 19 in the HEALTH MART Drugstore FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the HEALTH MART Drugstore FDD and qualifies whose outlets they describe.
What is HEALTH MART Drugstore's franchise failure rate?
Based on SBA 7(a) loan data, HEALTH MART Drugstore has a charge-off rate of 5.3% across 21 loans, meaning 5.3% 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 HEALTH MART Drugstore franchise locations are there?
As of their most recent FDD filing, HEALTH MART Drugstore has 4,544 total units in the United States, including 4,543 franchised units and 1 company-owned units. 459 new units were opened in the latest reporting year.
Is HEALTH MART Drugstore a good franchise to buy?
FranchiseVerdict rates HEALTH MART Drugstore as a A-grade franchise with a verdict score of 61 out of 100 (higher is better), 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.
For franchisors
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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.