Medicine Shoppe Franchise Cost, Revenue & Review 2026
- Investment
- $513K – $896K
- Disclosed sales
- not disclosed
- SBA charge-off
- 7.3%
- on 169 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Medicine Shoppe is a franchise of independently owned community pharmacies dispensing prescriptions and OTC products with patient counseling. Franchisees run a local pharmacy managing inventory, insurance billing, and compliance.
FranchiseVerdict summary · 2026
A Medicine Shoppe 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 7.3% charge-off rate across 169 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
- 271
- 74th pct Healthcare
- SBA charge-off
- 7.3%
- % 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 54/100 (higher is better). SBA loan charge-off rate of 7.3% across 169 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -21 franchised outlets in the latest year (8 opened, 29 closed) (Item 20).
- FLAG21 units terminated last reporting year (7.7% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Medicine Shoppe International, Inc.
- Parent company
- 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
- Incorporated in
- DE
- HQ
- 7000 Cardinal Place, Dublin, Ohio 43017
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $222.6B
- vs $226.8B prior year
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
- 1970
- FDD year
- 2025
- States available
- 36
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
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $175K | $245K |
| Equipment, build-out, other | $338K | $651K |
| Total initial investment | $513K | $896K |
Source: Medicine Shoppe 2025 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
- $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%
- Set by a formula · 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
Medicine Shoppe 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 Medicine Shoppe 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 -8.8% 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 Medicine Shoppe 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
- 271
- Opened
- 8
- Last reporting year
- Closed
- 29
- Terminated
- 21
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 10.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -8.8%
- Net unit change over 3 years
- 3-yr CAGR
- -8.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 21
- Not renewed
- 2
- Transferred
- 12
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 27
- Franchisor's next-year forecast
- Transfer rate
- 4.0%
- Owners selling to other franchisees
- Continuity rate
- 90.3%
- Units that stayed open
- Termination rate
- 7.6%
- Franchisor-initiated terminations
- Ceased ops
- 2.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 38 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.
Where the owners are · Item 20 owner list
332 current owners across 38 states.
- PA 49
- CA 43
- MO 19
- FL 17
- IL 17
- OH 17
- KY 14
- TX 14
- NY 13
- WV 12
- NJ 11
- TN 10
- +26 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 169
- Loan volume
- $82.9M
- Median loan
- $491K
- average
- Charge-off rate
- 7.3%
- on 169 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 58
- Defaults
- 9
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- 588
- Lender concentration
- N/A
Top lenders financing Medicine Shoppe franchisees
Showing 3 of 58 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 Medicine Shoppe from SBA 7(a) FOIA data.
- Avg interest rate
- 5.77%
- Avg chargeoff amount
- $60K
- Jobs supported
- 588
Top SBA lenders
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Bank of America, National Association | 11 | N/A | N/A |
| 2 | PNC Bank, National Association | 9 | N/A | N/A |
| 3 | Manufacturers and Traders Trust Company | 8 | N/A | N/A |
| 4 | Wells Fargo Bank National Association | 7 | N/A | N/A |
| 5 | Readycap Lending, LLC | 7 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| PAPennsylvania | 24 | 0 | -- |
| FLFlorida | 9 | 0 | -- |
| MDMaryland | 7 | 0 | -- |
| OHOhio | 6 | 0 | -- |
| CACalifornia | 5 | 0 | -- |
| MOMissouri | 5 | 0 | -- |
| TXTexas | 5 | 0 | -- |
| KSKansas | 4 | 0 | -- |
| MNMinnesota | 4 | 0 | -- |
| UTUtah | 3 | 0 | -- |
SBA 7(a) lending trend
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 7.3% — 54% 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
Contracting franchise system with hidden unit economics, unprotected territory, litigation exposure, and parent company legal liabilities presents high-risk investment.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
MSI initiated 3 arbitrations against franchisees (Acra, TODAMAR x2, Nunya). Cardinal Health parent faces SEC fraud settlement, National Opioid Litigation ($4.9B accrued), Cordis IVC filter product liability, and insurer coverage litigation.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are those of the franchisor's parent and guarantor, Cardinal Health, Inc. (consolidated), for fiscal years ended June 30, 2025 and June 30, 2024; figures in millions USD. Net worth is a shareholders' deficit (negative).
ⓘ 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: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 54 / 100 verdict
- 01MINORUnit count declining 7.2% YoY (271 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and suggests franchisor may be hiding poor unit-level economics
- 03MINORUnprotected territory creates direct competition risk; multiple franchisees could operate in same area, cannibalizing sales
- 04HIGHParent company Cardinal Health faces SEC accounting settlements and extensive opioid/product liability litigation, creating reputational and financial risk to franchise system
- 05MINORFranchisor has filed three arbitration actions against franchisees for breach and non-payment, signaling franchisee financial distress or operational conflicts
- 06MINORHigh investment ceiling ($895,653) combined with declining units and no profitability data creates significant capital-at-risk scenario
- 07MED5-year term is relatively short; limited time to recoup investment if system continues deteriorating
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 |
| 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 (only if court refuses to enforce jury trial waiver or class action waiver) |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 7 |
View Item 3 litigation summary
MSI initiated 3 arbitrations against franchisees (Acra, TODAMAR x2, Nunya). Cardinal Health parent faces SEC fraud settlement, National Opioid Litigation ($4.9B accrued), Cordis IVC filter product liability, and insurer coverage litigation.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
- Training location
- No formal training program provided by franchisor; web-based training assistance for HIPAA and compliance obligations only
- Ongoing training
- Optional
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
332 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 Medicine Shoppe franchise?
The total investment to open a Medicine Shoppe franchise ranges from $513K – $896K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Medicine Shoppe franchise owners earn?
Medicine Shoppe 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 Medicine Shoppe?
Medicine Shoppe is franchised by Medicine Shoppe International, Inc.. Its parent company is Cardinal Health, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Medicine Shoppe 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 Medicine Shoppe FDD and qualifies whose outlets they describe.
What is Medicine Shoppe's franchise failure rate?
Based on SBA 7(a) loan data, Medicine Shoppe has a charge-off rate of 7.3% across 169 loans, meaning 7.3% 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 Medicine Shoppe franchise locations are there?
As of their most recent FDD filing, Medicine Shoppe has 271 total units in the United States, including 271 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is Medicine Shoppe a good franchise to buy?
FranchiseVerdict rates Medicine Shoppe as a B-grade franchise with a verdict score of 54 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.