FranchiseVerdict
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B58/100FDD 2024

HEALTH MART Drugstore — Litigation & Risk

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

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Moderate — Review

1 case disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
1
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
58 / 100
FranchiseVerdict composite
Rating
MODERATE
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
179
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

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

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 58/100 rating

Risk Score Breakdown

  1. 01HIGHParent company (McKesson) facing billions in opioid litigation settlements with 400+ related cases creating systemic reputational and financial risk
  2. 02MINORFranchise system declining 2.4% YoY with 4,544 units, indicating contracting market rather than growth opportunity
  3. 03MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents informed ROI assessment on $2,470-$798,870 investment range
  4. 04MINORUnprotected territory creates direct competition risk from other HEALTH MART franchisees in same market
  5. 05MINORExtremely low franchise fee ($0) combined with $390/month royalty suggests franchisor prioritizes volume/royalties over franchisee profitability
  6. 06MINORUnknown franchise term creates uncertainty around renewal, buyout, and long-term planning
  7. 07MINORWide investment range ($2,470-$798,870) suggests highly variable unit economics with unclear cost drivers

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.