D68/100FDD 2025
Medicap Pharmacy — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
68 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
108
Government-backed loans issued
Default rate
4.8%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
5 loans
Loans charged off or defaulted
Total loan volume
$24.9M
Avg loan size
$231K
Participating lenders
52
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Ohio
State whose law governs disputes — relevant if you're not based there
What drove the 68/100 rating
Risk Score Breakdown
- 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 FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.