Health Mart Inc. Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Health Mart Inc. franchise requires a total initial investment of $262K – $834K. The latest FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 5.3% charge-off rate across 19 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified
Overview
- Investment
- $262K – $834K
- 29th pct Retail
- Avg gross sales
- N/A
- 22nd pct Retail
- Royalty
- N/A
- Units
- 4,347
- 42nd pct Retail
- SBA charge-off
- 5.3%
- % of SBA 7(a) loans not repaid · median varies by category
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
- Total investment $262K – $834K.
- Item 19 discloses no financial performance representations of any kind (franchisor explicitly states it makes no representations about franchisee financial performance, past or future).
- Verdict B (Above average), verdict score 58/100 (higher is better). SBA loan charge-off rate of 5.3% across 19 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System 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 · Items 5–7
FDD Item 7
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. 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
- Middle of category vs category
- 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 |
Financial Performance
Item 19 discloses no financial performance representations of any kind (franchisor explicitly states it makes no representations about franchisee financial performance, past or future).
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 -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 · 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
- 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)
- 94.7%
- 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
Borrower mix: 0% went to startups / new businesses, 100% to established operators
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.
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
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.
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 · 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. 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 Health Mart Inc.'s franchise failure rate?
Based on SBA 7(a) loan data, Health Mart Inc. has a charge-off rate of 5.3% across 19 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 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), 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
Are you the franchisor?
If you represent Health Mart Inc., you can request corrections or provide updated information.
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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.