From the filed FDD — automated extraction, check the source
2024 FDD · 1+ year old
Good Neighbor Pharmacy
Pharmacy · parent company: not identified
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% over 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. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:
- 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, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.
Our rating · opinion
Proven & steady
A real track record, though with soft spots. Units held flat (2022–2024: 2,275 → 2,286); the fiscal 2024 exit rate was 9.2%, well above the 1.9% median across 25 comparable systems (health & wellness).
Exit rate · fiscal 2024
9.2%
vs 1.9% median across 25 comparable systems (health & wellness)
Cost to open
$44K–$556K
Item 7 total investment range
SBA loan losses
Too few to rate
2 seasoned resolved loans; 30 needed
Market density · California
Dense market
22% denser than the national average
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Data as of 2026-10-29. Figures come from Good Neighbor Pharmacy's public FDD filings (latest: MN 2024, extracted 2026-06-19) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.
What each source says
FDD record · SBA loans · model · auditor
The sources broadly agree, and the verdict follows the FDD's operating record.
FDD record · Item 20
Steady operating record
Units held flat (2022–2024: 2,275 → 2,286); exit rate 9.2% (fiscal 2024) vs 1.9% median.
SBA loans · vs same-year loans
Too few seasoned loans
2 resolved loans approved by FY2020; 30 needed.
Modeled risk
Lower risk
Directional only — too few seasoned loans to check it.
Auditor opinion · Item 21
Not extracted
We did not extract the audit opinion.
Behind the verdict
the record, factor by factor · Item 20
latest consecutive years · 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 · shown, not counted in the verdict
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 — an exit rate of 9.2% (fiscal 2024), vs a 1.9% median across 25 comparable systems (health & wellness). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.
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 outcomes · compared with franchise loans of the same years
Banks have made 18 SBA-backed loans to Good Neighbor Pharmacy franchisees since 2019. Only 2 of its loans approved by FY2020 have resolved — fewer than the 30 we need to compare it fairly with other franchise loans, so we don't rate it.
All-time, 0 of 2 resolved loans charged off (0.0%). That raw figure mixes every approval year since 2019 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score. 89% of the brand's loans have not resolved yet.
—
2 seasoned resolved · 30 needed
0.0%
0 of 2 resolved, every approval year
—
charged-off $ ÷ approved $, defaulted loans
$1,820,088
what recent franchisees borrowed
—
shown with 10+ defaults
5 vs 3
distinct banks still lending
Charge-off rate by loan approval year (%) · dashed line = all franchise loans that year
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO GOOD NEIGHBOR PHARMACY BY SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD
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–$556K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$44K–$556K
all-in investment range
Franchise fee (Item 5)
$0
upfront, one-time
Royalty (Item 6)
See Item 6
not a single flat % — read the fee table
This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on staff payroll, insurance, rent, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).
Build a real pro-forma for Good Neighbor Pharmacy with a buyer-paid CPAHow the earnings claim is built
FDD ITEM 19 · BASIS · 2024 FDD
The headline figure is MTM services completed per month (first of six operating-metric comparisons) for Nov 2023 - Jul 2024 (monthly averages; pet health May-Jul 2024). It is not an annual per-outlet figure, so we don't treat it as unit revenue. It shows no costs, so it says nothing about what an owner keeps.
Graded on three things the filing states: coverage (2 points if the figure covers at least 75% of the units it is compared with, 1 point for 50–75%), centre (2 points if it prints both a median and a mean, 1 for one of them), and costs (2 points for costs through a profit line or full cost detail, 1 for some cost items). 5–6 points = More complete, 3–4 = Partial, 0–2 = Limited. The grade describes the disclosure, not the business.
Show the basis ↓Hide the evidence ↑
| What is measured | MTM services completed per month (first of six operating-metric comparisons) (other measure; not an annual per-outlet figure) |
| Period | Nov 2023 - Jul 2024 (monthly averages; pet health May-Jul 2024) |
| Whose results | Franchised outlets |
| Units included | 2,253 (total for comparison not stated) |
| Left out | no exclusions stated |
| Average (mean) | not printed |
| Median | not printed |
| Met or beat the average | 712 out of 2,253 (32%) |
| Costs shown | None — sales only |
| Where | p. 50 (Item 19 runs pp. 50–52) |
Modeled risk
FDD Risk Score · a prediction from disclosure and loan-file features
The model puts this brand in its lower-risk band — but this brand has too few seasoned SBA loans to check the score against, so read it as a band, not a number.
Risk percentile
Lower risk
Directional · no point estimate
Modeled · vs same-year loans
band only
too few seasoned loans to check
Top drivers: System size (log units) (lowers) · Item 20 exit rate (raises) · No Item 19 disclosure (raises) · Net unit growth (lowers). Too few seasoned SBA loans to check the score — read it as a band. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Public records
Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored
We have no verified public-record signals published for Good Neighbor Pharmacy. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.
7 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 questions come from what Good Neighbor Pharmacy has disclosed. Each one carries the number it came from, so you can check the answer against 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?
Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.
FDD Item 20 · FY2024
- 03
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
- 04
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
- 05
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
- 06
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
- 07
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?
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A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — 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. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. 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
How many Good Neighbor Pharmacy franchised outlets left the system last year?
In Good Neighbor Pharmacy's latest FDD Item 20 (fiscal 2024), 211 of 2,297 franchised outlets left the system — an exit rate of 9.2% — compared with a 1.9% median across 25 comparable systems (health & wellness) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.
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–$556K (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.