Medicap PharmacyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Medicap Pharmacy franchise requires a total initial investment of $513K – $896K and an ongoing 3.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 4.5% charge-off rate across 131 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $513K – $896K
- 65th pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- 3.0%
- 2nd pct Healthcare
- Units
- 59
- 56th pct Healthcare
- SBA default
- 4.5%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1974. Systems this mature have refined operations and brand recognition.
Franchised units fell from 67 to 59 over 3 years. Investigate why operators are leaving.
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.
- Verdict F (Bottom Quintile) with a risk score of 78/100. SBA loan charge-off rate of 4.5% across 131 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- Medicap Pharmacies Incorporated
- Parent company
- Medicine Shoppe International, Inc. and Cardinal Health, Inc.
- Ultimate parent
- Cardinal Health, Inc.
- 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
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- MSI
Other brands the franchisor or its parent operates (Item 1).
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).
- CEO
- Brad Cochran
- Headquarters
- OH
- Founded
- 1971
- FDD year
- 2025
- States available
- 18
FDD Item 7 · 2025 filing · 12 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
- Near category avg vs category
- Liquid capital req'd
- $175K – $245K
- Below avg, review vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- 3.0%
- percentage_of_gross · 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% of gross sales |
| Transfer fee | $1K |
| Inventory (initial) | $70K – $100K |
| Total fee load | 3.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Healthcare averages
How Medicap Pharmacy Compares
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 (yr3)
- -6.3%
- Net unit change last year
- 3-yr CAGR
- -11.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 4
- Transfers (3yr)
- 0
- 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 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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%
- 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
Vintage analysis
Medicap Pharmacy charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Medicap Pharmacy's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 25-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
Medicap: No litigation. MSI/Cardinal Health: 4 franchisee arbitration cases (J. Acra, TODAMAR (2 separate arbitrations), Nunya Business Systems) involving payment defaults and franchise agreement disputes—all settled. 1 SEC enforcement action against Cardinal Health (parent company) for accounting fraud (2007), settled without admission, requiring $35 million penalty and $1 disgorgement.
Largest disclosed settlement: $589,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 78 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| 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 | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Columbus, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 6 |
View Item 3 litigation summary
Medicap: No litigation. MSI/Cardinal Health: 4 franchisee arbitration cases (J. Acra, TODAMAR (2 separate arbitrations), Nunya Business Systems) involving payment defaults and franchise agreement disputes—all settled. 1 SEC enforcement action against Cardinal Health (parent company) for accounting fraud (2007), settled without admission, requiring $35 million penalty and $1 disgorgement.
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
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisee
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Medicap Pharmacy · FDD (2025) PDF
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 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 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 67 franchised units and 0 company-owned units.
Is Medicap Pharmacy a good franchise to buy?
FranchiseVerdict rates Medicap Pharmacy as a F-grade franchise with a risk score of 78 out of 100, 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.
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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.