Medicap Pharmacy Franchise Cost, Revenue & Review 2026
- Investment
- $513K – $896K
- Disclosed sales
- not disclosed
- SBA charge-off
- 4.5%
- on 131 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Medicap Pharmacy is an independent community pharmacy franchise focused on prescriptions, immunizations, and personalized patient care. Franchisees own and operate the pharmacies, managing dispensing, inventory, and regulatory compliance.
FranchiseVerdict summary · 2026
A Medicap Pharmacy franchise requires a total initial investment of $513K – $896K and an ongoing 3.0% royalty[2]. 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. SBA 7(a) loans show a 4.5% charge-off rate across 131 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
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: 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 scored3 of 4 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $513K – $896K
- 68th pct Healthcare
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 2nd pct Healthcare
- Units
- 59
- 57th pct Healthcare
- SBA charge-off
- 4.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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 $513K – $896K, 3.0% ongoing royalty.
- 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 48/100 (higher is better). SBA loan charge-off rate of 4.5% across 131 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -4 franchised outlets in the latest year (0 opened, 4 closed) (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Medicap Pharmacies Incorporated
- Parent company
- Medicine Shoppe International, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Cardinal Health, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- President, MSI and Medicap; Cardinal Health Executive Vice President, Pharmaceutical and Specialty Distribution
- Brad Cochran
- CEO experience
- 26 yrs
- Years in role or industry
- Incorporated in
- IA
- HQ
- 7000 Cardinal Place, Dublin, Ohio 43017
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $222.6B
- vs $204.8B prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- MSI
Other brands the franchisor or its parent operates (Item 1).
Same owner · FDD Item 1, page 9
1 other brand on this site name Cardinal Health, Inc. as parent or ultimate parent in their own FDD.
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.
Overview
About
- CEO
- Brad Cochran
- Headquarters
- OH
- Founded
- 1971
- FDD year
- 2025
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 119% above the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Feenot refundable | — | — | |
| Furniture, Fixtures & Equipmentnot refundable | $42K | $95K | |
| Pre-Opening Costsnot refundable | $3K | $10K | |
| Leasehold Improvementsnot refundable | $55K | $175K | |
| Signs & Installationnot refundable | $15K | $35K | |
| Opening Inventorynot refundable | $70K | $100K | |
| Grand Opening and Marketingnot refundable | $4K | $34K | |
| Accounts Receivable Financingnot refundable | $120K | $140K | |
| Computer and Pharmacy Equipmentnot refundable | $26K | $40K | |
| Retail Solutionsnot refundable | $0 | $14K | |
| Accreditation Costsnot refundable | $3K | $8K | |
| Additional Funds - 3 monthsnot refundable | $175K | $245K | |
| Total initial investment | $513K | $896K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $513K – $896K
- Bottom third — review vs category
- Liquid capital req'd
- $175K – $245K
- Bottom third — review vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- 3.0%
- typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 3.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Transfer fee | $1K |
| Inventory (initial) | $70K – $100K |
| Total fee load | 3.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Medicap Pharmacy 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 Medicap Pharmacy 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, 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.
Fee burden
Total ongoing fee load of 3.0% — below the Healthcare median of 8.0%.
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 -11.9% 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 Healthcare medians
How Medicap Pharmacy Compares
Category median of published Healthcare 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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 59
- Opened
- 0
- Last reporting year
- Closed
- 4
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.8%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -11.9%
- Net unit change over 3 years
- 3-yr CAGR
- -11.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 1
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 9
- Franchisor's next-year forecast
- Transfer rate
- 50.8%
- Owners selling to other franchisees
- Continuity rate
- 93.7%
- Units that stayed open
- Termination rate
- 3.4%
- Franchisor-initiated terminations
- Ceased ops
- 3.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 18 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
18
states with franchisees (per FDD Item 12)
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 131
- Loan volume
- $29.2M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 4.5%
- on 131 loans · 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)
- 95.2%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 56
- Defaults
- 5
- Typical loan rate
- 5.8%
- avg rate to borrowers
- Franchised industry avg
- 6.7%
- brand beats franchise avg ↓
- Jobs supported
- 270
- 1.1 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 75% went to startups / new businesses, 25% to established operators
Franchise vs independent — in pharmacies and drug stores, franchised businesses charge off at 6.7% vs 6.7% for independents
Vintage analysis
Medicap Pharmacy charge-off rate by loan vintage
Top lenders financing Medicap Pharmacy franchisees
Showing 3 of 56 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Medicap Pharmacy from SBA 7(a) FOIA data.
- Principal loss rate
- 3.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 5.83%
- Avg chargeoff amount
- $151K
- Lender concentration
- 13.9%
- Job velocity
- 1.1 per $100K
- NAICS benchmark
- 5.7%
- NAICS 446110
- Jobs supported
- 270
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Bank of America, National Association | 15 | $1.8M | 7.1% |
| 2 | Stearns Bank National Association | 13 | $3.6M | 7.7% |
| 3 | Newtek Small Business Finance, Inc. | 8 | $1.8M | 0.0% |
| 4 | JPMorgan Chase Bank, National Association | 5 | $1.7M | 0.0% |
| 5 | Live Oak Banking Company | 4 | $2.2M | 0.0% |
| 6 | Wells Fargo Bank National Association | 3 | $320K | 0.0% |
| 7 | First-Citizens Bank & Trust Company | 3 | $471K | 0.0% |
| 8 | BNY Mellon, National Association | 2 | $138K | 0.0% |
| 9 | Rolling Hills Bank & Trust | 2 | $298K | 0.0% |
| 10 | Truist Bank | 2 | $245K | 50.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| IAIowa | 16 | 0 | 0.0% |
| VAVirginia | 10 | 0 | 0.0% |
| PAPennsylvania | 9 | 0 | 0.0% |
| NENebraska | 6 | 1 | 16.7% |
| INIndiana | 5 | 1 | 25.0% |
| NCNorth Carolina | 5 | 0 | 0.0% |
| TXTexas | 5 | 0 | 0.0% |
| GAGeorgia | 4 | 0 | 0.0% |
| ILIllinois | 4 | 0 | 0.0% |
| ARArkansas | 3 | 1 | 33.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 4.5% — 72% 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
Shrinking franchise system with declining units, undisclosed financials, parent company regulatory/litigation exposure, and franchisee payment disputes signal fundamental operational and profitability challenges.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
No Medicap-specific litigation disclosed. Three MSI affiliate arbitrations against franchisees for failure to pay fees under franchise agreements, all settled. Extensive Cardinal Health parent litigation including SEC settlement ($35M penalty), national opioid settlement ($6.3B+ total), and IVC filter product liability ($275M settlement). All resolved or ongoing at parent level only.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the consolidated financials of the franchisor's ultimate parent and guarantor, Cardinal Health, Inc. and subsidiaries (not Medicap Pharmacies Incorporated standalone), audited by Ernst & Young LLP. Figures in millions: total revenue FY2025 $222,578M, FY2024 $204,765M; net earnings attributable to Cardinal Health FY2025 $1,561M; total assets $53,122M; total shareholders' deficit (negative net worth) of $2,634M at June 30, 2025.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 48 / 100 verdict
- 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
- 06MINORRoyalty structure ($599/month floor) may be disproportionate burden if franchisee operates below breakeven
- 07MINOR5-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
What are you signing up for?
Ongoing fees run about 3.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 90 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | Columbus, Ohio (if court mandates arbitration) |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 8 |
View Item 3 litigation summary
No Medicap-specific litigation disclosed. Three MSI affiliate arbitrations against franchisees for failure to pay fees under franchise agreements, all settled. Extensive Cardinal Health parent litigation including SEC settlement ($35M penalty), national opioid settlement ($6.3B+ total), and IVC filter product liability ($275M settlement). All resolved or ongoing at parent level only.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site at franchisee's restaurant and corporate training facility
- Ongoing training
- Optional
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
8 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Medicap Pharmacy franchise?
The total investment to open a Medicap Pharmacy franchise ranges from $513K – $896K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Medicap Pharmacy franchise owners earn?
Medicap Pharmacy 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.
Who owns Medicap Pharmacy?
Medicap Pharmacy is franchised by Medicap Pharmacies Incorporated. Its parent company is Medicine Shoppe International, Inc.. The ultimate parent named in the FDD is Cardinal Health, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Medicap Pharmacy 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 Medicap Pharmacy FDD and qualifies whose outlets they describe.
What is Medicap Pharmacy's franchise failure rate?
Based on SBA 7(a) loan data, Medicap Pharmacy has a charge-off rate of 4.5% across 131 loans, meaning 4.5% 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 Medicap Pharmacy franchise locations are there?
As of their most recent FDD filing, Medicap Pharmacy has 59 total units in the United States, including 59 franchised units and 0 company-owned units.
Is Medicap Pharmacy a good franchise to buy?
FranchiseVerdict rates Medicap Pharmacy as a B-grade franchise with a verdict score of 48 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.