Health Mart Inc. Franchise Cost & 2025 FDD Data
60/100
Second tier
60 this brand54 Retail medianlikely 49–71: narrower with more SBA loans (moderate confidence)
Higher is better · an editorial assessment, not investment advice
#1,045 of 3,068 graded brands
Why a B: Helped by scale and legal record. Held back by unit growth and transparency. See all six factors
- Total investment
- $262K – $834K
- Avg gross sales
- not disclosed
- SBA charge-off
- 19 loans: too few to judge
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2025 FDD
Per the 2025 FDD, 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 verdict grade - an editorial assessment, not investment advice - reflects that. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2025 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium (issued 12 to 24 months ago; a newer filing is likely on file)
Evidence for the headline figures: 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
Quick verdict · vs Retail median
Top edge: green = better than the Retail median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSThe FDD makes no financial performance representation in Item 19, so it discloses no revenue or earnings figures; Item 19 is voluntary, and the Financial performance section explains what that does and does not mean.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 197.
- DATAThe FDD makes no financial performance representation in Item 19, so it discloses no revenue or earnings figures; Item 19 is voluntary, and the Financial performance section explains what that does and does not mean. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
AT STAKEOne unit at the Item 7 midpoint: $71K a year in payments on assumed SBA 7(a)-style terms.You put in about $110K of your own cash and personally guarantee a $438K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (3)
- Net -197 franchised outlets in the latest Item 20 year. Ask owners why outlets closed.
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Limited data: this page holds only part of the filing. Read the FDD itself before relying on any figure here.
Checked and clear: no auditor doubt that the franchisor can keep operating and no pending lawsuit naming the franchisor. Not on file here, so ask: SBA charge-off rate against the category median, jury-trial waiver, supplier rebates and owner-operator rule.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 78% above the Retail median ($309K).
Source: FDD 2025 · Items 5–7 (fees and startup costs)
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Health Mart Systems, Inc. (Item 1: 6555 State Hwy 161, Irving, Texas 75039) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Leasehold Improvements | $60K | $115K | |
| Exterior Signage | $0 | $20K | |
| Interior Decor, Signs, Aisle Markers, and Departmental Signs | $0 | $7.5K | |
| Fixtures and Equipment | $40K | $100K | |
| Inventory including Merchandise | $60K | $180K | |
| Insurance | $2K | $10K | |
| Supplies | $200 | $700 | |
| Business Licenses | $500 | $3K | |
| Utility and Lease Security Deposits | $0 | $1.5K | |
| Computer Hardware and Software | $10K | $100K | |
| Monthly Fees (3 months) | $1.17K | $1.17K | |
| Grand Opening and Initial Advertising and Promotion | $1K | $15K | |
| Additional Funds (3 months) | $87K | $280K | |
| Total initial investment | $262K | $834K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| 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. |
| Technology feesComputer Hardware and Software cost range $0-$45,000 (Open) / $10,000-$100,000 (UnOpened), lump sum or monthly, payable to third-party suppliers and Parent. | See the list |
What do units actually make?
This FDD makes no Item 19 financial performance representation - a voluntary item - so unit sales aren't disclosed.
Source: FDD 2025 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Health Mart Inc. unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $548K Item 7 midpoint is a $438K loan, paid over 10 years at 10.5%: $71K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Health Mart Inc.'s past SBA 7(a) loans averaged 6.2% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $110K Assumption (the part the loan does not cover of the $548K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $438K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · 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 gross sales figures are disclosed. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Health Mart Inc. unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
No Item 19 figures are on file for this brand. Enter your own costs from a lease quote, a payroll plan and calls with current owners.
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.
Item 7 midpoint of $262K to $834K
Item 7's $0 to $280K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, royalty rate, ad fund rate, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $438K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
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 · filed by Health Mart Systems, Inc.
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 verdict 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.
vs Retail medians
How Health Mart Inc. compares
Category median of published Retail 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.
Who are you contracting with?
Health Mart Systems, Inc., owned by McKesson Corporation.
Same franchisor, other program: HEALTH MART Drugstore. Each is a separate offering with its own page.
Item 1 (the franchisor) · 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 2025 FDD
- Incorporated in
- Delaware
- HQ
- 6555 State Hwy 161, Irving, Texas 75039
Same owner · FDD Item 1, page 8
1 other brand on this site names McKesson Corporation as parent or ultimate parent in its own FDD.
- HEALTH MART Drugstore (grade B)
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Is the system healthy?
-311 franchised outlets between the first and last year-ends Item 20 prints (4,657 to 4,346, -6.7% in total, -3.4% a year compounded).
Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Signed, not yet open
- 18
- 1 for every 242 open outlets · Item 20 Table 5
- Projected new
- 247
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units fell from 4,657 in 2022 to 4,346 in 2024
Axis does not start at zero.
Source and method
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
- Loans on file
- 19
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $4.8M
- Average loan
- $251K
- loan volume divided by loans
- Charge-off rate
- 19 loans: too few to judge
- Limited SBA coverage: 19 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
- Paid in full
- 19 loans: too few to judge
- Recent-loan charge-off
- 19 loans: too few to judge
- Lenders
- 14
- Average interest rate
- 6.2%
- Jobs reported
- 109
- on the 17 loans approved FY2007 on; earlier loans did not record jobs
- Lender concentration
- 16%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
The approval-year breakdown covers 15 of the 19 resolved loans (FY2010 to FY2013).
SBA 7(a) · charge-off rate by approval year
Health Mart Inc. charge-off rate by loan approval year
None of these 4 approval years has 10 or more resolved loans, too few to draw a trend. Each year’s numbers are in the table below.
Show the numbers by year
| Year | Resolved | Charged off | Rate |
|---|---|---|---|
| 2010 | 3 | 0 | Too few |
| 2011 | 3 | 0 | Too few |
| 2012 | 6 | 1 | Too few |
| 2013 | 3 | 0 | Too few |
Source and method
Explore lender portfolios on Bank Reports or regional data on State Reports.
Full SBA lending reportlenders · charge-off rate · trend
Lender network · SBA 7(a)
SBA Lending Report
Lender, state and yearly detail for Health Mart Inc. from SBA 7(a) FOIA loan records.
- Average SBA guarantee
- 71%
- Average interest rate
- 6.2%
- Lender concentration
- 16%
- Jobs reported
- 109
Top 10 SBA lenders by loan count
| Loans | Volume | Charge-off |
|---|---|---|
| JPMorgan Chase Bank, National Association | ||
| 3 | $668K | Not on file |
| Live Oak Banking Company | ||
| 3 | $1.3M | Not on file |
| SmartBank | ||
| 2 | $115K | Not on file |
| Town and Country CU | ||
| 1 | $257K | Not on file |
| Citizens State Bank and Trust Co., Ellsworth, Kansas | ||
| 1 | $238K | Not on file |
A lender’s rate counts only its resolved loans, the loans that have finished (paid in full or charged off); a 0.0% often means few of its loans have finished. Under 10 resolved loans, the rate reads “Too few”.
Charge-off rate by state (top 10 by loans)
| State | Loans | Charged off | Rate |
|---|---|---|---|
| MI Michigan | 3 | 1 | Too few3 resolved |
| GA Georgia | 2 | 0 | Too few2 resolved |
| NY New York | 2 | 0 | Too few2 resolved |
| AR Arkansas | 1 | 0 | Too few1 resolved |
| AZ Arizona | 1 | 0 | Too few1 resolved |
| CA California | 1 | 0 | Too few1 resolved |
| CT Connecticut | 1 | 0 | Too few1 resolved |
| FL Florida | 1 | 0 | Too few1 resolved |
| KS Kansas | 1 | 0 | Too few1 resolved |
| MO Missouri | 1 | 0 | Too few1 resolved |
Rate: charged-off loans over resolved loans (paid in full plus charged off), shown from 10 resolved loans. "Too few": under 10 resolved. The Loans column counts every approval in the window, including loans still being repaid.
SBA 7(a) loans approved per year
Source: SBA 7(a) FOIA loan-level data, matched to the brand by FranchiseVerdict.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 4,657 to 4,346 over the two Item 20 years.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 60/100 (category median 54); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Weighs on it, weakest dimension-311 franchised outlets between the first and last year-ends Item 20 prints (4,657 to 4,346, -6.7% in total, -3.4% a year compounded); turnover 13.9%
- Scale Helps4,346 franchised units, +1 company-owned (4,347 in all)
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency Weighs on itItem 19 declines to disclose financial performance; audited financials; no franchisor financial figures on file
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Litigation case detail1 matter · Item 3
Litigation cases
Parent, affiliates, master franchisor and subfranchisor
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
“… 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 2025 FDD, Item 3
Within this matter, as the filing narrates it · 4 proceedings
Matter with no printed caption
pendingnames the franchisor · federal court (not named)
“We remain named as a defendant in approximately three 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 of the 2025 FDD, Item 3
Matter with no printed caption
pendingGovernment or regulatory action · names the parent company · McKesson Corporation (“our Parent”)
“That agreement does not include school districts or the claims of Cabell County and the City of Huntington. After a trial, the claims of Cabell County and the City of Huntington were decided in our Parent’s favor on July 4, 2022. Those subdivisions have appealed that decision.”Page 13 of the 2025 FDD, Item 3
Matter with no printed caption
pendingGovernment or regulatory action · names the parent company · McKesson Corporation (“our Parent”) · Commonwealth Court of Pennsylvania (appeal to the Supreme Court of Pennsylvania)
“The district attorneys of the City of Philadelphia, Pennsylvania, and Allegheny County, Pennsylvania did not participate in the Settlement and sought to bring separate claims against our Parent, notwithstanding the settlement with the state of Pennsylvania and its attorney general.”Page 13 of the 2025 FDD, Item 3
Mayor and City Council of Baltimore v. Purdue Pharma LP
pendingGovernment or regulatory action · names the parent company · McKesson Corporation (“our Parent”) · Circuit Court or Maryland for Baltimore City (sic) · 24-C-18-000515
“… No. 24-C-18-000515. Baltimore claims that the defendants’ distribution of controlled substances to certain pharmacies in the City of Baltimore and Baltimore County caused a public nuisance. On November 12, 2024, the jury returned a verdict finding our Parent liable and assessing approximately $192 million in compensatory damages.”Page 13 of the 2025 FDD, Item 3
Counted as one matter, the way Item 3 groups it.
4 of the proceedings above are indented under the matter they belong to because the filing narrates them inside it — an appeal, a consolidated case, a related arbitration. Each carries its own quote and page. They are counted with their matter, not as extra matters, so this list and the 1 Item 3 discloses agree.
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 2025 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | No |
|---|---|
| Exclusive territory | No |
| Franchisor can compete | Yes |
| Right of first refusal | No |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Mandatory arbitration | No |
| Governing law | Texas |
Items 10 (financing), 11 (training and support)
Training and operations
- Classroom training
- 8 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual/teleconference
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Health Mart Inc. franchise?
Per the 2025 FDD, the total investment to open a Health Mart Inc. franchise ranges from $262K to $834K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
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 gross sales 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 verdict 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 Inc.?
Health Mart Inc. is franchised by Health Mart Systems, Inc. Its parent company is McKesson Corporation. Source: FDD Item 1, 2025 filing.
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. The Health Mart Inc. FDD does not make an Item 19 financial performance representation, so this page shows no earnings figure.
What is Health Mart Inc.'s franchise failure rate?
There is no published franchise failure rate, and Health Mart Inc. has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Health Mart Inc. franchise locations are there?
Per the 2025 FDD, Health Mart Inc. has 4,346 franchised units and 1 company-owned (4,347 in all). In the latest year, the number of franchised outlets fell by 197.
Is Health Mart Inc. a good franchise to buy?
FranchiseVerdict gives Health Mart Inc. a B Verdict grade (Second tier) with a verdict score of 60 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale and legal record. Held back by unit growth (-311 franchised outlets between the first and last year-ends Item 20 prints: 4,657 to 4,346, -6.7% in total, -3.4% a year compounded) and transparency (Item 19 declines to disclose financial performance). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Retail franchises
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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.