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B64/100FDD 2025

Medicine Shoppe — Litigation & Risk

Health & Wellness - Other · FDD Items 3, 4 & 5

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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
64 / 100
FranchiseVerdict composite
Rating
MODERATE
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
113
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted

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 64/100 rating

Risk Score Breakdown

  1. 01MINORUnit count declining 7.2% YoY (271 units) indicates system contraction and potential market saturation or franchisee dissatisfaction
  2. 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and suggests franchisor may be hiding poor unit-level economics
  3. 03MINORUnprotected territory creates direct competition risk; multiple franchisees could operate in same area, cannibalizing sales
  4. 04HIGHParent company Cardinal Health faces SEC accounting settlements and extensive opioid/product liability litigation, creating reputational and financial risk to franchise system
  5. 05MINORFranchisor has filed three arbitration actions against franchisees for breach and non-payment, signaling franchisee financial distress or operational conflicts
  6. 06MINORHigh investment ceiling ($895,653) combined with declining units and no profitability data creates significant capital-at-risk scenario
  7. 07MED5-year term is relatively short; limited time to recoup investment if system continues deteriorating

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.