Bottom line
- Total investment $130K – $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 113 loans (below the industry average).
- System contracting at -8.8% 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 Medicine Shoppe unit return on the cash you put in?
Unlevered ROIC · per unit
25%
Below typical band (30–60%)
Overview
About
Franchisees operate independent pharmacy retail locations, dispensing prescription medications, OTC products, and health services. Daily operations include managing inventory, processing prescriptions, counseling patients, staffing technicians, and maintaining compliance with pharmaceutical regulations and DEA requirements.
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 · 12 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
Contracting franchise system with hidden unit economics, unprotected territory, litigation exposure, and parent company legal liabilities presents high-risk investment.
Score breakdown · what drove the 64 / 100 rating
- 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
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
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Medicine Shoppe · FDD (2025) PDF