Verified — real FDD extraction
Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender
Good Neighbor Pharmacy
Health & Wellness · independent · est. —
Good Neighbor Pharmacy is a network that lets independently owned local pharmacies operate under a shared brand, backed by distributor AmerisourceBergen (Cencora). Members get group purchasing, marketing, and operational support while remaining independent. A franchisee/member runs a community retail pharmacy filling prescriptions and selling health products.
Good Neighbor Pharmacy net unit count grew +0.5% from 2022–2024 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: too many owners are failing outright rather than selling.
Exit rate · latest year
9.2%
vs 11.0% across 35 health & wellness systems
Cost to open
$44K–$575K
Item 7 total investment range
SBA loan defaults
Too few resolved
18 loans exist; too few resolved to rate
Market density · California
Dense market
22% denser than the national average
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2022–2024
Survival record
FDD Item 20 · outlet status by year
In fiscal 2024, 211 of 2,297 franchised outlets left the system — a 9.2% annualized exit rate, vs 11.0% across 35 health & wellness systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2022 | 2023 | 2024 |
|---|---|---|---|
| Outlets at start | 2,153 | 2,275 | 2,297 |
| Opened | 257 | 238 | 201 |
| Transfers | 20 | 29 | 159 |
| Terminations | 135 | 216 | 211 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 2,275 | 2,297 | 2,286 |
| Net change | +122 | +22 | -11 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 18 SBA-backed loans to Good Neighbor Pharmacy franchisees since 2019. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
2 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$1,820,088
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
5 vs 3
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO GOOD NEIGHBOR PHARMACY BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $0 franchise fee (Item 5) and a total investment of $44K–$575K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$44K–$575K
all-in investment range
Franchise fee (Item 5)
$0
upfront, one-time
Royalty (Item 6)
—
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$0
0% of sales, before profit
Over a 10-yr term
$0
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Good Neighbor Pharmacy with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the safer end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
6–30 / 100
Directional
Modeled SBA charge-off
8.4%
Observed SBA charge-off
no resolved cohort
Top drivers: System size (log units) (lowers) · Net unit growth (raises) · Item 20 exit rate (raises) · Investment ceiling (log) (lowers). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Good Neighbor Pharmacy. That's a good sign — but it reflects news coverage, not a guarantee.
8 questions to ask a Good Neighbor Pharmacy franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what Good Neighbor Pharmacy has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
Good Neighbor Pharmacy’s own Item 20 shows 211 of 2,297 franchised outlets left the system in fiscal 2024 — about 9.2%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2024
- 02
159 units transferred to new owners in fiscal 2024. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Transfers count as neutral in every ranking. They are the single easiest place to hide distress.
FDD Item 20 · FY2024
- 03
Item 7 says the low end to open is $44K, but the average recent SBA loan to a Good Neighbor Pharmacy franchisee was $1.8M. What did you actually spend to open, all in?
Lenders size loans to real project costs. A large gap between the disclosed floor and what banks actually fund is the most common way buyers get underfunded.
FDD Item 7 vs SBA approvals FY2020+
- 04
Good Neighbor Pharmacy makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2024
- 05
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 06
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 07
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 08
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Good Neighbor Pharmacy’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing Good Neighbor Pharmacy's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Good Neighbor Pharmacy franchise questions, answered from the filings
What percentage of Good Neighbor Pharmacy franchises closed last year?
In Good Neighbor Pharmacy's latest FDD Item 20 (fiscal 2024), 211 of 2,297 franchised outlets left the system — an annualized exit rate of 9.2% — compared with 11.0% across 35 health & wellness systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Good Neighbor Pharmacy franchise cost?
Per Good Neighbor Pharmacy's 2024 FDD, buying in requires an initial franchise fee of $0 (Item 5) and a total initial investment of $44K–$575K (Item 7).
Does Good Neighbor Pharmacy disclose earnings (Item 19)?
Yes — Good Neighbor Pharmacy makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.