How much does it cost to open The Medicine Shoppe?
The 2025 Franchise Disclosure Document gives two separate U.S. investment ranges: $513,050 to $895,653 for a new store and $130,000 to $546,653 for converting an existing pharmacy. The conversion figure assumes the buyer already owns the pharmacy being converted; it does not include the price of acquiring prescription files, goodwill, or a covenant not to compete.
Data basis: Medicine Shoppe International, Inc., a Delaware corporation and subsidiary of Cardinal Health, Inc.; FDD issued September 18, 2025; U.S. new-store and conversion formats; Items 5, 6, 7, 8, 10, 11, and 17; checked July 18, 2026. The official U.S. franchise information page describes new-store, acquisition, and co-branding paths. No matching 2025 FDD was located on an official franchise-controlled domain, so FDD Item and page references below are unlinked.
A conversion is disclosed at $130,000–$546,653; a new store is disclosed at $513,050–$895,653. These are not interchangeable ranges. The 2025 FDD also states that up to $39,425 of the conversion investment or up to $103,425 of the new-store investment may be paid to the franchisor or affiliates, even though the Initial Franchise Fee itself is $0. Source: 2025 FDD cover; Item 5, pp. 9–10; Item 7, pp. 15–20.
Why are the new-store and conversion ranges so different?
The new-store range includes a full opening package—premises work, opening inventory, computer and pharmacy equipment, accounts-receivable financing, and three months of Additional Funds. A conversion can start lower because the 2025 FDD assumes an operating pharmacy already has some of those assets and receivables.
2025 FDD total investment ranges by format
The bars show the exact low-to-high span for each format; the common scale runs from $0 to $900,000.
Interpretation: the conversion range overlaps the lower part of the new-store range, but it is a different cost contract with different assumptions. Source: 2025 FDD, Item 7, pp. 15–20.
$103,425 is not an Initial Franchise Fee. The FDD says the Initial Franchise Fee is $0. The larger figure is the maximum portion of a new-store investment that may be paid to MSI or its affiliates for disclosed inventory and optional services.
What is included in the estimated initial investment?
Item 7 includes premises and equipment, opening inventory, marketing, systems, accreditation, financing for early receivables, optional Retail Solutions, and three months of Additional Funds. It does not treat those categories as a single cash payment to the franchisor.
Largest new-store Item 7 category ranges
The chart isolates six major new-store categories on a common $0–$250,000 scale.
Interpretation: Additional Funds and Leasehold Improvements create the widest high-end exposure; Accounts Receivable Financing is also a large new-store-only line item. Source: 2025 FDD, Item 7, pp. 15–19.
Premises, fixtures, and signs
These costs are generally paid to landlords, contractors, local authorities, and vendors before opening. The FDD bases several new-store estimates on an approximately 2,500-square-foot location and excludes new construction costs. Based on franchisee experience during the preceding 12 months, Item 7 reports rent typically ranging from $2,700 to $6,000 per month for a 2,500-square-foot location, while cautioning that lease or construction spending varies by site and is not fully estimable.
| Cost category | New Store | Conversion | When due |
|---|---|---|---|
| Furniture, Fixtures & Equipment | $42,000–$95,000 | $0–$40,000 | Before opening, as incurred |
| Pre-Opening Costs | $3,000–$10,000 | $0–$8,000 | Before opening, as incurred |
| Leasehold Improvements | $55,000–$175,000 | $0–$140,000 | Before opening, as incurred |
| Signs & Installation | $15,000–$35,000 | $5,000–$35,000 | Before opening, as incurred |
Inventory, marketing, and operating systems
The largest structural difference is Accounts Receivable Financing: Item 7 allocates $120,000–$140,000 to a new store and $0 to a conversion because the FDD assumes the existing pharmacy already has receivables supporting continued operations.
| Cost category | New Store | Conversion | When due |
|---|---|---|---|
| Opening Inventory | $70,000–$100,000 | $0–$36,000 | On delivery or within 10–15 days |
| Grand Opening and Marketing | $4,000–$34,000 | $0–$26,000 | Before opening, as incurred |
| Accounts Receivable Financing | $120,000–$140,000 | $0 | After opening, as incurred |
| Computer and Pharmacy Equipment | $26,000–$40,000 | $0–$40,000 | Before opening, as incurred |
| Retail Solutions | $0–$14,153 | $0–$14,153 | Before opening, as incurred |
The Computer and Pharmacy Equipment range excludes optional vendor training. Item 11 anticipates a pharmacy management system at $18,500–$32,500 plus up to approximately $11,000 for training and related expenses, and a point-of-sale system at approximately $7,500 plus up to approximately $6,000 for training and related expenses. Item 7 preserves its official total without adding those optional training amounts. Source: 2025 FDD, Item 11, pp. 30–31.
Retail Solutions use two different disclosed ranges: Item 5 identifies $0–$3,425 of optional initial payments to MSI or affiliates, while the Item 7 line reaches $0–$14,153 because its high estimate includes startup charges and the first three months of selected services under the stated assumptions.
Accreditation and working capital
Additional Funds cover estimated operating expenses during the first three months, including payroll and fees payable to MSI, but not replacement of initial inventory. The low estimate assumes the owner operates as the pharmacist, so it excludes a pharmacist-manager salary.
| Cost category | New Store | Conversion | When due |
|---|---|---|---|
| Accreditation Costs | $3,050–$7,500 | $0–$7,500 | Before opening, as incurred |
| Additional Funds — 3 months | $175,000–$245,000 | $125,000–$200,000 | Upon opening, as incurred |
| Total Estimated Initial Investment | $513,050–$895,653 | $130,000–$546,653 | Across the pre-opening and first-three-month period |
The official totals exclude finance charges, interest, debt service, and new construction. They also exclude optional Specialized Care Centers such as Point-of-Care Testing and, for an acquired conversion pharmacy, the negotiated acquisition price.
When is the money paid?
The 2025 FDD does not require one lump-sum payment. Cash is deployed in stages: contracting and site costs, build-out and systems, inventory delivery, then opening-period working capital and ongoing invoices.
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Before signing or paying an affiliate: the prospect must receive the FDD at least 14 calendar days before signing a binding agreement or making a payment. The FTC’s FDD review guidance explains this federal disclosure period.
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Before opening: furniture, fixtures, pre-opening costs, leasehold improvements, signage, computer systems, Retail Solutions startup charges, and accreditation are generally paid as incurred. The Initial Franchise Fee remains $0.
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At inventory delivery: Opening Inventory is paid on delivery or within 10–15 days after delivery. The FDD estimates $70,000–$100,000 for a new store and $0–$36,000 for a conversion.
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At and after opening: Additional Funds are used across the first three months, while new-store Accounts Receivable Financing supports supplier payments as third-party receivables build. Continuing License Fees and selected Retail Solutions are then invoiced on their disclosed schedules.
Which fees continue after opening?
The principal required ongoing charge is the Continuing License Fee: either 3% of Gross Sales or a fixed $599 per month if the franchisee makes the disclosed pharmaceutical-purchasing election. Optional Retail Solutions create separate monthly, usage-based, transaction, and setup charges.
| Fee or obligation | Amount or basis | Timing | Cost condition |
|---|---|---|---|
| Continuing License Fee | 3% of Gross Sales or $599/month | 3% option: 15th day of each month; fixed option: within 30 days of invoice | $599 option requires the disclosed pharmaceutical-purchase election |
| Advertising or business development fund | $0 required | Not applicable | MSI recommends local advertising of at least 1% of Gross Sales; it is not currently a required fund payment |
| Franchise Business Consultant | $0 currently | As incurred | MSI reserves the right to require enrollment and charge in the future |
| Late Charges | 1.5% per month | After notice | Applies to unpaid balances, capped by law |
| Transfer Fee | $1,000 | Before transfer | Due on transfer of the franchise or control |
| Supplier Evaluation Expenses | Varies | As incurred | May apply if MSI evaluates a supplier requested by the franchisee |
| Costs, Attorneys’ Fees, and Indemnification | Varies | As incurred or within 10 days after notice | Triggered by specified claims, liabilities, or successful legal action |
| Pharmaceutical and Marketing Inventory | Varies | As incurred | Depends on quantity and type purchased |
The fixed Continuing License Fee may be adjusted as of November 1 each year for inflation using the Consumer Price Index. The Bureau of Labor Statistics CPI overview explains the index referenced in Item 6. A state or local tax imposed on MSI’s license-fee receipts may also be passed through as an additional license fee.
Which optional Retail Solutions can create recurring charges?
Retail Solutions are not required to operate the franchise, but a selected program generally carries at least a one-year commitment. After that period, termination may require 30–90 days’ notice, and an early termination fee may apply under the relevant participation agreement.
| Optional service | Disclosed charge | Payment basis |
|---|---|---|
| Reimbursement Consulting Service | $255–$300/month | Monthly invoice; qualifies for $300 credit |
| Front-End Product Management — full service | $89/month | Monthly invoice; qualifies for $300 credit |
| Front-End Product Management — pricing or planograms only | $55/month | Monthly invoice; qualifies for $300 credit |
| Reconciliation Services | $145–$170/month | Monthly invoice; qualifies for $300 credit |
| Reconciliation Plus | $272–$320/month | Monthly invoice; qualifies for $300 credit |
| Cardinal Health Inventory Optimization Solution | $325/month + $0 remote or $2,500 on-site setup | Monthly invoice; qualifies for $300 credit |
| Pharmacy Marketing Advantage core | $205 primary; $155 additional; $69 same-URL additional location | Monthly invoice; qualifying core package receives credit |
| Optional service | Disclosed charge | Payment basis |
|---|---|---|
| PMA Digital Marketing | $310–$1,015/month | No setup fee; monthly invoice |
| PMA Communication Package | $310–$410/month | No setup fee; monthly invoice |
| PMA Reputation Management | $205/month per store site | Monthly invoice |
| PMA Patient Engagement Platform | $175/month per store site | Monthly invoice |
| Cardinal Health Point-of-Care Testing service | $99/month full solution or $75/month Resource Center | Monthly invoice |
| Cardinal Health Medical Benefit Billing | $45, $99, or $129/month + claim fees | $0.75–$3.00 per claim, $30 monthly minimum, plus $0.25 per claim edit |
| Immunization Services | $35 or $75/month | Monthly invoice |
| 340B Direct | Average $6.00/claim | As incurred |
| Leader Vitamin Club | $100 adult kit; $100 kids kit + product | One-time enrollment payment |
| Pharmacy Payments | $79–$149/month + $299–$475 terminal + $250 setup | Also 2.9% + $0.30 per card-present or card-not-present transaction |
Reporting is listed at no charge for standard reports, with advanced reports available through enrollment. Item 6 also states that fees for affiliate programs offered to all pharmacy customers—but not required to operate a Medicine Shoppe franchise—are not included in the fee table.
Which cost obligations change with a choice or event?
Several obligations are conditional rather than universal. The buyer’s supplier election, optional clinical programs, transfer plans, payment history, and requested vendors can materially change the cash requirement after signing.
Pharmaceutical-purchase election: the $599 monthly Continuing License Fee is available if the franchisee agrees to purchase at least 95% of pharmaceutical inventory from Cardinal Health or an affiliate. If an approved buying group has a lower obligation, the buying group’s percentage governs.
Retail Solutions selection: choosing optional programs adds setup, monthly, per-claim, or transaction fees; some qualify for the $300 monthly credit and others do not.
Late payment: unpaid amounts can trigger a 1.5% monthly late charge, subject to the highest lawful rate.
Transfer: selling the franchise or transferring control triggers the $1,000 Transfer Fee and requires MSI approval.
Requested supplier review: if MSI establishes an approval program and evaluates a supplier requested by the franchisee, Supplier Evaluation Expenses may be charged at actual varying amounts.
DMEPOS or Point-of-Care services: accreditation, testing protocols, a CLIA Waiver, equipment, private space, and state-specific approvals can add capital beyond the base format range.
Insurance scope: Item 8 requires workers’ compensation, general liability of at least $1,000,000 per occurrence and $3,000,000 aggregate, professional liability of at least $1,000,000, and employee fidelity bonds of at least $10,000. Premiums vary by location, premises, inventory, staffing, and third-party reimbursement programs. Source: 2025 FDD, Item 8, pp. 20–23.
Renewal or relocation: Item 6 lists no fixed renewal or relocation fee. Item 17 permits automatic five-year renewal unless either party gives six months’ notice, but MSI may require the then-current agreement; moving the pharmacy requires prior consent and creates buyer-specific site and relocation costs. Source: 2025 FDD, Items 6, 12, and 17, pp. 10–15 and 31–39.
Technology compliance: routine hardware or software upgrades are not required by the Franchise Agreement, but upgrades may be necessary to comply with HIPAA, other legal requirements, or pharmacy-system and point-of-sale vendor security mandates. Source: 2025 FDD, Item 11, p. 31.
What does the conversion estimate leave out?
The conversion range assumes the franchisee already owns the operating pharmacy. If the buyer is acquiring that pharmacy, the negotiated cost of prescription files, goodwill, and a covenant not to compete is outside the $130,000–$546,653 Item 7 range.
The 2025 FDD says this amount varies significantly from store to store and cannot be estimated by MSI.
What remains inside the conversion range
Conversion signage, possible leasehold work, added private-label inventory, computer or pharmacy equipment, optional Retail Solutions, accreditation, and three months of Additional Funds remain in Item 7. The acquisition consideration is a separate negotiated transaction.
A buyer comparing an acquisition to a new store should keep two figures separate: the FDD conversion investment and the independently negotiated acquisition price. Combining them is necessary for a personal capital plan, but the result would be a buyer-specific calculation—not an MSI estimate.
How much can Point-of-Care Testing add?
The optional Point-of-Care Testing Specialized Care Center adds an estimated $3,900–$32,150 and is excluded from the base new-store and conversion totals. Its cost depends heavily on state requirements, testing protocols, the privacy area, equipment, and marketing.
| Point-of-Care component | Disclosed range | Timing or basis |
|---|---|---|
| Pharmacist training | $250–$1,000 | Before opening |
| Collaborative Practice Agreement & testing protocols | $2,000–$6,000 | Before opening; state-dependent |
| CLIA Waiver | $150 every 2 years | Before testing |
| Semi-private or private testing area | $500–$10,000 | Before opening |
| Automated reader device | $1,000–$9,000 | Before opening |
| Program forms and support materials | $0–$1,000 | Internal preparation or outsourcing |
| Marketing | $0–$5,000 | Before and after opening |
| Total Point-of-Care Testing investment | $3,900–$32,150 | Outside base Item 7 totals |
The CMS CLIA application guidance explains when a testing site needs a certificate, while the CDC waived-test guidance explains the federal testing category referenced by the FDD.
Are liquid capital, net worth, or financing minimums disclosed?
No minimum Liquid Capital, Net Worth, or Non-Borrowed Funds threshold is stated in the 2025 FDD. Item 10 also says MSI does not offer direct or indirect financing and does not guarantee a note, lease, or other obligation. Source: 2025 FDD, Item 10, p. 24; Item 1, p. 1.
- Estimated Initial Investment
- The Item 7 cost range for opening and the first three months; it is not a liquid-capital qualification.
- Liquid Capital
- No minimum is disclosed in the 2025 FDD. Cash available to fund the project must be assessed separately.
- Net Worth
- No minimum is disclosed. Net Worth is not the same as cash available for opening costs.
- Personal Guarantee
- Owners of a corporation, limited liability company, or partnership may be required to sign a guaranty of franchise obligations.
- Financing
- No MSI financing or guaranty is disclosed. The official franchise information says the team can help with acquisition financing, but Item 10 does not promise credit approval or funding.
The absence of a published liquidity threshold does not reduce the Item 7 cash need. A buyer still has to fund deposits, construction, systems, inventory, receivables, and three months of Additional Funds, while finance charges and debt service sit outside the official total.
What should a buyer verify before relying on the range?
The main verification task is to map the correct Item 7 format to the actual transaction and identify every cost the official range leaves unresolved. A conversion acquisition, new construction, optional clinical program, or supplier election can change the funding plan materially.
Confirm the format: new store, conversion of an already-owned pharmacy, or acquisition followed by conversion.
Separate acquisition consideration: prescription files, goodwill, and covenant-not-to-compete payments are outside the conversion total.
Price the premises: Item 7 excludes new construction and cannot determine local lease, permit, or construction outcomes beyond its disclosed categories.
Confirm owner staffing: the low Additional Funds estimate excludes a pharmacist-manager salary because it assumes an owner-operator pharmacist.
Identify optional services: distinguish credit-eligible Retail Solutions from non-credit services and account for setup, usage, claims, transactions, and termination terms.
Validate accreditation scope: pharmacies billing Medicare for DMEPOS may need accreditation from a CMS-approved organization. Use the CMS accreditation-organization list and the NABP DMEPOS Pharmacy Accreditation program for current requirements.
Use the current disclosure: the FTC Consumer’s Guide to Buying a Franchise explains how to compare the FDD, agreements, and buyer-specific costs before signing.
Bottom line: the verified 2025 starting range is $513,050–$895,653 for a new store or $130,000–$546,653 for a conversion of an already-owned pharmacy. The main variables are premises work, systems, inventory, early receivables, three-month working capital, optional Retail Solutions, accreditation, and any pharmacy acquisition price excluded from Item 7.