HEALTH MART Drugstore Franchise Cost, Revenue & Review 2026
- Investment
- $262K – $799K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 21 loans
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored2 of 2 headline figures on this page cite a page of the filing.
Overview
- Investment
- $262K – $799K
- 53rd pct Healthcare
- Avg gross sales
- N/A
- Royalty
- Flat fee
- Units
- 4,544
- 81st pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better).
- GROWTHNegative: net -114 franchised outlets in the latest year (459 opened, 141 closed) (Item 20).
- 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
- FDD Item 1, page 8 of the 2024 FDD
- 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 65% 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
- Paid to franchisor at signing
- 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one HEALTH MART Drugstore unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How HEALTH MART Drugstore Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 432
- Not renewed
- 0
- Reacquired
- 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.
Where the owners are · Item 20 owner list
20 current owners across 15 states.
- MI 3
- FL 2
- KS 2
- MS 2
- CA 1
- CT 1
- IA 1
- IN 1
- MD 1
- OH 1
- OK 1
- PA 1
- +3 more states
Counts only, from the list the franchisor prints in Item 20; 79 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 21 loans
- Limited SBA coverage: 21 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 21 loans
- 5-yr charge-off
- Limited · 21 loans
- 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for HEALTH MART Drugstore from SBA 7(a) FOIA data.
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | JPMorgan Chase Bank, National Association | 3 | $668K | 33.3% |
| 2 | Live Oak Banking Company | 3 | $1.3M | 0.0% |
| 3 | SmartBank | 2 | $115K | 0.0% |
| 4 | Town and Country CU | 1 | $257K | 0.0% |
| 5 | Eastern Bank | 1 | $149K | N/A |
| 6 | Citizens State Bank and Trust Co., Ellsworth, Kansas | 1 | $238K | 0.0% |
| 7 | Farmers & Merchants State Bank | 1 | $175K | 0.0% |
| 8 | Zions Bank, A Division of | 1 | $210K | 0.0% |
| 9 | First PREMIER Bank | 1 | $200K | 0.0% |
| 10 | Metro City Bank | 1 | $496K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| GAGeorgia | 3 | 0 | 0.0% |
| MIMichigan | 3 | 1 | 33.3% |
| NYNew York | 2 | 0 | 0.0% |
| ARArkansas | 1 | 0 | 0.0% |
| AZArizona | 1 | 0 | 0.0% |
| CACalifornia | 1 | 0 | 0.0% |
| CTConnecticut | 1 | 0 | 0.0% |
| FLFlorida | 1 | 0 | 0.0% |
| KSKansas | 1 | 0 | 0.0% |
| MOMissouri | 1 | 0 | 0.0% |
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
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)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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).
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 64 / 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
Litigation case detail1 matters · Item 3
Litigation cases
Parent, affiliates and predecessor
Pending (1)
In re: National Prescription Opiate Litigation
pendingGovernment or regulatory action · McKesson Corporation ("Our Parent") · filed 2017-12-08 · U.S. District Court, Northern District of Ohio · 1:17-md-02804-DAP
“In re: National Prescription Opiate Litigation, Case No. 1:17-md-02804-DAP (December 8, 2017), U.S. District Court, Northern District of Ohio. Our Parent, along with other pharmaceutical wholesale distributors, pharmaceutical manufacturers, and retail pharmacy chains, has been sued in many cases asserting claims related to distribution of controlled substances.”Page 12 of the 2024 FDD, Item 3
Outcome:“We remain named as a defendant in approximately five controlled substance-related cases pending in federal court. We contend these claims are foreclosed by the Settlement or otherwise subject to strong defenses.” (page 14)
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns HEALTH MART Drugstore?
HEALTH MART Drugstore is franchised by Health Mart Systems, Inc.. Its parent company is McKesson Corporation. Source: FDD Item 1, 2024 filing.
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?
SBA 7(a) loan charge-off data is not available for HEALTH MART Drugstore (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.