How Much Does a Medicap Pharmacy Franchise Cost?

The 2025 Medicap Pharmacy Franchise Disclosure Document gives two materially different U.S. investment ranges: $513,050 to $895,653 for a New Store and $130,000 to $546,653 for a Conversion of an existing pharmacy. The legal franchisor is Medicap Pharmacies Incorporated.

The 2025 cost snapshot separates the $0 Initial Franchise Fee from format-specific working capital, the Continuing License Fee, the optional Point-of-Care Testing investment, and the event-triggered Transfer Fee.

The Item 7 total combines premises work, fixtures, signs, opening inventory, pharmacy systems, optional Retail Solutions, accreditation, working capital, and—in a New Store—the disclosed Accounts Receivable Financing line. The categories differ sharply between a New Store and a Conversion, so the formats should not be blended.

In the 2025 Item 7 table, a New Store carries full premises, equipment, inventory, and launch ranges, while a Conversion often starts at $0 for assets the existing pharmacy already has.

The 2025 FDD assigns New Store costs to receivables financing and pharmacy systems, while both formats may incur Retail Solutions, accreditation, and three months of Additional Funds.

Additional Funds are already included in the total. The three-month amount covers estimated operating expenses, working capital, payroll, and fees payable to Medicap Pharmacies Incorporated. It excludes replacement of initial inventory. The low estimate also excludes a pharmacist manager salary because the FDD assumes the owner will manage the pharmacy during those first three months.

There is no Initial Franchise Fee due at signing, but most of the capital is still committed before or around opening. The payment sequence matters because the New Store format can require construction-related cash, inventory purchases, systems, and launch costs before receivables begin to settle.

The Conversion estimate assumes an operating pharmacy already has much of the required furniture, systems, inventory, receivables, and site infrastructure. That assumption lowers several Item 7 categories to $0 at the low end. It does not mean an acquisition is fully captured by the $130,000 minimum.

• New construction is excluded. Item 7 assumes a 2,500-square-foot site and does not include constructing a new facility. The FDD reports recent franchisee rent of approximately $2,700-$6,000 per month for a 2,500-square-foot location, but local lease terms and build-out obligations remain site-specific.
• Finance charges, interest, and debt service are excluded. Those amounts depend on the buyer's financing terms and are not part of the official total.
• Vendor training can sit outside the Computer and Pharmacy Equipment line. Item 11 states that pharmacy management system training and related costs may be up to approximately $11,000, while point-of-sale system training and related costs may be up to approximately $6,000.
• Specialized Care Centers are excluded. The Item 7 total assumes none are added. The FDD separately quantifies the optional Point-of-Care Testing program.
• Insurance cost is variable. Item 8 requires statutory workers' compensation, general liability of at least $1 million per occurrence and $3 million aggregate, professional liability of at least $1 million, and employee fidelity bonds of at least $10,000.

CMS requirements can also affect accreditation and compliance spending. The CMS DMEPOS supplier enrollment guidance explains the federal accreditation and enrollment framework referenced by the FDD.

The core ongoing charge is the Continuing License Fee: either 3% of Gross Sales or a fixed $599 per month. The fixed option is available when the franchisee elects the disclosed pharmaceutical purchasing commitment with Cardinal Health or an affiliate. Optional Retail Solutions can add monthly, per-claim, per-location, transaction, setup, and product costs.

3% license-fee path

Due on the 15th day of each month, based on the prior month's Gross Sales, when the qualifying pharmaceutical purchase election is not used.

$599 monthly path

Available with the pharmaceutical purchasing election; the invoice is due within 30 days. The fee may be adjusted each November 1 for inflation using the U.S. Bureau of Labor Statistics Consumer Price Index.

Advertising requirement

No advertising or business-development fund contribution is currently required. Item 11 recommends spending at least 1% of Gross Sales on local advertising, but describes that amount as a recommendation, not a mandatory fee.

Franchise Business Consultant

Currently $0. Item 6 reserves the right to require enrollment and charge a fee in the future.

Item 6 states that fees paid to Medicap or its affiliates are nonrefundable. It also requires the full applicable Continuing License Fee for the final month of the agreement regardless of the actual termination date.

Some Retail Solutions qualify for a single $300 monthly credit. Once selected, a program generally carries a one-year minimum commitment; later termination requires the notice period in the applicable participation agreement.

These 2025 Item 6 options are billed monthly and do not qualify for the $300 Retail Solutions credit.

These optional 2025 Item 6 programs combine monthly charges with per-claim, transaction, terminal, implementation, enrollment, or product costs.

Item 6 says lower monthly fees for certain services generally reflect a discount: commonly 15% for a fully branded store and 10% for a co-branded store. The FDD does not publish a separate Item 7 total for co-branding. Cardinal Health's current pharmacy-solutions discussion confirms that Medicap Pharmacy franchisees can access inventory, reimbursement, immunization, and point-of-care programs, but the FDD—not the website—controls the fee figures above. See Cardinal Health's current community pharmacy solutions overview.

Several Item 6 charges are not routine monthly fees. They arise only after late payment, a transfer, a legal or indemnity event, a supplier request, or use of optional inventory and services.

• Late Charges: 1.5% per month on unpaid balances, capped at the highest lawful rate, immediately after notice.
• Costs and Attorneys' Fees: variable, due within 10 days after notice when the FDD's stated legal-action condition applies.
• Indemnification: variable and due as incurred for covered claims arising from the pharmacy's operations.
• Supplier Evaluation Expenses: variable if Medicap establishes an approval program and evaluates a supplier requested by the franchisee.
• Transfer Fee: $1,000 before completing a transfer of the franchise or control of the franchise.
• Pharmaceutical and Marketing Inventory: variable according to the products and quantities purchased from Medicap or affiliates.
• Early Retail Solutions termination: a termination fee may apply under the relevant participation agreement if the program is ended before its permitted termination window.
• Tax pass-through: an additional Continuing License Fee may equal a state or local tax imposed on Medicap's receipt of the license fee, excluding Medicap's income taxes.

The franchise term is five years and automatically renews for another five years unless either party gives at least six months' notice of nonrenewal. Item 6 does not disclose a separate renewal fee. A renewal may require signing the then-current agreement, whose economic terms may differ. Relocation requires consent, but the FDD does not disclose a separate relocation fee. Item 11 also says hardware and software upgrades are not generally required during the term except when needed for HIPAA, security, law, regulation, or vendor mandates.

The 2025 FDD separately estimates $3,900 to $32,150 to establish a Point-of-Care Testing program. This amount is not included in the New Store or Conversion Item 7 totals.

The FDD states that a semi-private or private testing area is required, and that the high end can involve construction and permits for a private counseling room. CMS now manages CLIA certification and fee processes electronically; see the CMS Clinical Laboratory Improvement Amendments information.

No liquid-capital, net-worth, or non-borrowed-funds minimum is disclosed in the 2025 FDD or on the current official franchise page. Those concepts must not be substituted for the Item 7 investment range. The FDD does disclose a personal-guarantee obligation and a clear financing limitation.

Liquid Capital

No minimum disclosed in the verified 2025 FDD.

Net Worth

No minimum disclosed in the verified 2025 FDD.

Non-Borrowed Funds

No minimum disclosed in the verified 2025 FDD.

Personal Guarantee

If the franchisee is a corporation, limited liability company, or partnership, its owners must sign the Guaranty attached to the Franchise Agreement.

Franchisor Financing

Item 10 states that Medicap does not offer direct or indirect financing and does not guarantee a note, lease, or obligation.

The absence of a published minimum does not establish that every buyer will qualify or that the entire Item 7 amount can be borrowed. The FTC Consumer's Guide to Buying a Franchise explains why buyers should distinguish franchisor disclosures from lender underwriting and investigate costs that the FDD cannot fix for a specific site.

The official totals are the correct starting point, but a Medicap Pharmacy capital plan remains incomplete until the buyer reconciles the chosen format, site, supplier path, optional programs, and post-opening cash needs.

• Confirm the format in writing. A New Store and a Conversion have different Item 7 contracts; a co-brand option does not have a separately disclosed total.
• Resolve the Accounts Receivable Financing conflict. Ask why the table shows $120,000-$140,000 while Note 9 states $60,000-$100,000.
• Identify acquisition costs outside Item 7. For a Conversion purchase, document the price of the pharmacy, prescription files, goodwill, and any noncompete covenant.
• Price the actual site and insurance package. Verify lease deposits, tenant work, construction responsibility, licensing, required insurance limits, and whether new construction is contemplated.
• Model both Continuing License Fee paths. Compare the 3% of Gross Sales formula with the $599 monthly option together with the associated pharmaceutical purchasing contract.
• List every selected Retail Solution. Apply only one eligible $300 monthly credit, capture setup and transaction fees, and review the one-year commitment and termination terms.
• Separate base pharmacy costs from clinical add-ons. Point-of-Care Testing and other Specialized Care Centers can add capital beyond the base total.
• Request the most recent FDD and quarterly updates before signing. The Federal Trade Commission Franchise Rule is the governing federal disclosure framework.