Medicine Shoppe Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 7.3% charge-off rate across 169 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $513K – $896K
- 68th pct Healthcare
- Avg gross sales
- N/A
- Royalty
- 3.0%
- 1st pct Healthcare
- Units
- 271
- 75th 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 avg · 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.
- RETURNSFinancial 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).
- RISKVerdict A (Strongest tier), verdict score 59/100 (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).
- 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.
- 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
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 70% 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
- Top 40% of category vs category
- Royalty
- 3.0%
- 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% of gross sales |
| Transfer fee | $1K |
| Inventory (initial) | $70K – $100K |
| Total fee load | 3.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Medicine Shoppe did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Medicine Shoppe unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
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
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).
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 average of 8.8%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How Medicine Shoppe Compares
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
- 6
- Terminated
- 21
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 9.6%
- 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
3-year detail · Item 20
- Opened (3yr)
- 13
- Closed (3yr)
- 0
- Terminated (3yr)
- 26
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 11
- Reacquired (3yr)
- 0
- Franchisor bought back
- 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 · 37 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
- 169
- Loan volume
- $82.9M
- Median loan
- $491K
- average
- Charge-off rate
- 7.3%
- 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.
Premium insight
SBA Lending Report
Deep-dive into Medicine Shoppe's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 10 states
- Startup risk premium and job creation velocity
- 20-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
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)
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.
Largest disclosed settlement: $275,000,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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 59 / 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 | none |
| 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
278 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Medicine Shoppe · FDD (2025) PDF
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 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 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 A-grade franchise with a verdict score of 59 out of 100 (higher is better), 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.
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.