The Medicine ShoppeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Medicine Shoppe franchise requires a total initial investment of $513K – $895K and an ongoing 3.0% royalty[2]. The 2024 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 7.3% charge-off rate across 147 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $513K – $895K
- 65th pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- 3.0%
- 2nd pct Healthcare
- Units
- 292
- 72nd pct Healthcare
- SBA default
- 7.3%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1970. Systems this mature have refined operations and brand recognition.
Franchised units fell from 319 to 292 over 3 years. Investigate why operators are leaving.
18 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $513K – $895K including a $0 franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 46/100. SBA loan charge-off rate of 7.3% across 147 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 18 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Medicine Shoppe International, Inc.
- Parent company
- Cardinal Health, Inc.
- Incorporated in
- DE
- HQ
- 7000 Cardinal Place, Dublin, Ohio 43017
- Auditor
- Ernst & Young LLP
- Audited financials
Overview
About
Medicine Shoppe franchisees operate independent community pharmacies, dispensing prescription medications, managing inventory, providing customer pharmaceutical consultation, and handling insurance billing. Day-to-day operations involve managing pharmacy technicians, ensuring regulatory compliance (DEA, state pharmacy boards), maintaining patient records, and competing directly with chain pharmacies and mail-order services.
- CEO
- Brad Cochran
- Headquarters
- OH
- Founded
- 1970
- FDD year
- 2024
- States available
- 37
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $175K | $245K |
| Equipment, build-out, other | $338K | $650K |
| Total initial investment | $513K | $895K |
Source: The Medicine Shoppe 2024 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 – $895K
- Near category avg vs category
- Liquid capital req'd
- $175K – $245K
- Below avg, review vs category
- Franchise fee
- N/A
- Better than avg vs category
- Royalty
- 3.0%
- percentage_of_gross · 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 |
| Renewal fee | $0 |
| Total fee load | 3.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Healthcare averages
How The Medicine Shoppe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 292
- Opened
- 12
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.7%
- Net unit change last year
- 3-yr CAGR
- -5.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 9
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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 147
- Loan volume
- $75.7M
- Median loan
- $280K
- 50th percentile
- 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)
- 92.7%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 51
- Defaults
- 9
Vintage analysis
The Medicine Shoppe charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Medicine Shoppe's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 33-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Medicine Shoppe presents HIGH RISK due to declining unit economics, missing financial disclosures, extensive litigation involving parent company and franchisees, and absence of territory protection in a highly competitive pharmacy market.
Audited financials (Item 21)
Yes · Ernst & Young LLP
Score breakdown · what drove the 46 / 100 rating
- 01MINORDeclining unit count (-1.7% YoY) indicates contracting franchise system with potential recruitment/retention problems
- 02MEDNo disclosed average revenue or net income (missing Item 19) prevents validation of franchise profitability claims
- 03HIGHExtensive litigation history including contractual disputes with franchisees, SEC/FTC investigations of parent Cardinal Health, and opioid litigation creates reputational and operational risk
- 04MINORNo protected territory combined with 5-year term creates competitive vulnerability within same market
- 05HIGHParent company Cardinal Health faces multi-district litigation and regulatory investigations that could impact franchise support and brand reputation
- 06MINORDual royalty structure ($599/month minimum or 3% of gross) may create cash flow pressure for lower-volume pharmacies
- 07MINORZero franchise fee is unusual and may indicate difficulty attracting franchisees to a declining system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | No |
| Termination notice | 90 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 18 |
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 0 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
297 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Medicine Shoppe · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Medicine Shoppe franchise?
The total investment to open a The Medicine Shoppe franchise ranges from $513K – $895K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Medicine Shoppe franchise owners earn?
The 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 The Medicine Shoppe's franchise failure rate?
Based on SBA 7(a) loan data, The Medicine Shoppe has a charge-off rate of 7.3% across 147 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 The Medicine Shoppe franchise locations are there?
As of their most recent FDD filing, The Medicine Shoppe has 292 total units in the United States, including 319 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is The Medicine Shoppe a good franchise to buy?
FranchiseVerdict rates The Medicine Shoppe as a A-grade franchise with a risk score of 46 out of 100, 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.
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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.