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D70/100FDD 2024

The Medicine Shoppe — Litigation & Risk

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

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Elevated Risk

18 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
18
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
70 / 100
FranchiseVerdict composite
Rating
CAUTION
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
147
Government-backed loans issued
Default rate
7.3%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
9 loans
Loans charged off or defaulted
Total loan volume
$75.7M
Avg loan size
$515K
Participating lenders
51

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Not required
You retain the right to sue in court
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 70/100 rating

Risk Score Breakdown

  1. 01MINORDeclining unit count (-1.7% YoY) indicates contracting franchise system with potential recruitment/retention problems
  2. 02MEDNo disclosed average revenue or net income (missing Item 19) prevents validation of franchise profitability claims
  3. 03HIGHExtensive litigation history including contractual disputes with franchisees, SEC/FTC investigations of parent Cardinal Health, and opioid litigation creates reputational and operational risk
  4. 04MINORNo protected territory combined with 5-year term creates competitive vulnerability within same market
  5. 05HIGHParent company Cardinal Health faces multi-district litigation and regulatory investigations that could impact franchise support and brand reputation
  6. 06MINORDual royalty structure ($599/month minimum or 3% of gross) may create cash flow pressure for lower-volume pharmacies
  7. 07MINORZero franchise fee is unusual and may indicate difficulty attracting franchisees to a declining system

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.