Health Mart Inc. Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Health Mart Inc. franchise requires a total initial investment of $262K – $834K. 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 →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $262K – $834K
- 30th pct Retail
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 4,347
- 44th pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail 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 – $834K.
- 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 58/100 (higher is better).
- DECLINESystem contracting at -6.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Health Mart Systems, Inc.
- Parent company
- McKesson Corporation
- Incorporated in
- Delaware
- HQ
- 6555 State Hwy 161, Irving, Texas 75039
Can you afford it, and what does the money buy?
Entry cost runs 33% above the typical retail franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $0 | $280K |
| Equipment, build-out, other | $262K | $554K |
| Total initial investment | $262K | $834K |
Source: Health Mart Inc. 2025 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 – $834K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $280K
- Top 40% of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- No initial franchise fee and no percentage royalty; ongoi…
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Flat Monthly Fee of $390/month (exclusive of taxes), plus optional Front End Solutions fee ($50/month) and various optional/variable third-party program fees (MRA fee $200-$500/month, Relay Health switching fees); no ongoing percentage royalty on sales. |
| Inventory (initial) | $0 – $180K |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Health Mart Inc. 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 Inc. 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: 2025 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 -6.7% 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 Retail averages
How Health Mart Inc. Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4,347
- Opened
- N/A
- Last reporting year
- Closed
- N/A
- Turnover rate
- 13.9%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -6.7%
- Net unit change over 3 years
- 3-yr CAGR
- -6.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 405
- Closed (3yr)
- 126
- Terminated (3yr)
- 476
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 79
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $4.8M
- Median loan
- $210K
- 50th percentile
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
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
- 14
- Defaults
- 1
- Typical loan rate
- 6.2%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 4461
- Jobs supported
- 109
- 2.3 per loan
- Lender concentration
- 16%
- top lender's share
Vintage analysis
Health Mart Inc. charge-off rate by loan vintage
Top lenders financing Health Mart Inc. franchisees
Showing 3 of 14 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 Inc.'s SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
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
Litigation (Item 3)
Health Mart's Parent (McKesson) is a defendant in extensive opioid-distribution litigation (National Prescription Opiate MDL) brought by states, subdivisions, tribes, and private plaintiffs; Parent settled with 48 states/DC for up to ~$5.9B through 2038, plus separate settlements with Alabama (~$99M), West Virginia (~$84M additional), and Native American tribes (~$84M additional); a Baltimore jury verdict of $192M was reduced to $37M via remittitur and is being appealed; approximately 3 controlled-substance cases remain pending in federal court.
Largest disclosed settlement: $5,900,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Territory type | none |
|---|---|
| Protected territory | No |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | No |
| Governing law | Texas |
| Litigation count | 1 |
View Item 3 litigation summary
Health Mart's Parent (McKesson) is a defendant in extensive opioid-distribution litigation (National Prescription Opiate MDL) brought by states, subdivisions, tribes, and private plaintiffs; Parent settled with 48 states/DC for up to ~$5.9B through 2038, plus separate settlements with Alabama (~$99M), West Virginia (~$84M additional), and Native American tribes (~$84M additional); a Baltimore jury verdict of $192M was reduced to $37M via remittitur and is being appealed; approximately 3 controlled-substance cases remain pending in federal court.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual/teleconference
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Health Mart Inc. franchise?
The total investment to open a Health Mart Inc. franchise ranges from $262K – $834K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Health Mart Inc. franchise owners earn?
Health Mart Inc. 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.
What is Item 19 in the Health Mart Inc. 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 Inc. FDD and qualifies whose outlets they describe.
What is Health Mart Inc.'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for Health Mart Inc. (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 Inc. franchise locations are there?
As of their most recent FDD filing, Health Mart Inc. has 4,347 total units in the United States, including 4,346 franchised units and 1 company-owned units.
Is Health Mart Inc. a good franchise to buy?
FranchiseVerdict rates Health Mart Inc. as a B-grade franchise with a verdict score of 58 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.