Bottom line
- Total investment $513K – $896K including a $0 franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 126 loans (below the industry average).
- System contracting at -11.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Medicap Pharmacy unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Overview
About
Medicap franchisees operate independent pharmacy locations offering prescription dispensing, OTC medications, health consultations, and pharmacy-related services. Day-to-day operations include managing inventory, processing prescriptions, compliance with state/federal pharmacy regulations, customer service, and staff management while paying royalties to MSI (the franchisor).
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
HIGH RISK: Shrinking franchise system with declining units, undisclosed financials, parent company regulatory/litigation exposure, and franchisee payment disputes signal fundamental operational and profitability challenges.
Score breakdown · what drove the 64 / 100 rating
- 01MINORDeclining unit count (-6.3% YoY with 59 units) suggests system contraction and potential lack of franchisee profitability
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents assessment of actual earnings potential and ROI
- 03HIGHParent company Cardinal Health faces SEC enforcement action for accounting practices and major opioid/IVC filter litigation exposing franchisees to reputational and operational risk
- 04HIGHMSI litigation against franchisees for non-payment indicates cash flow problems among existing operators
- 05MINORUnprotected territory creates direct competition risk between franchisees in same market
- 06HIGHGoing concern status is 'False' (unclear if this means going concern is NOT assured or data is missing), raising sustainability questions
- 07MINORRoyalty structure ($599/month floor) may be disproportionate burden if franchisee operates below breakeven
- 08MINOR5-year term is relatively short without renewal clarity, creating exit risk after initial investment period
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Medicap Pharmacy · FDD (2025) PDF