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
HEALTH MART
Health & Wellness · independent · est. —
Health Mart is a pharmacy franchise banner, backed by distributor McKesson, that lets independent pharmacies operate under a national brand with marketing and purchasing support. The franchisee is typically a licensed pharmacist-owner running a community retail pharmacy that dispenses prescriptions and sells over-the-counter products.
HEALTH MART net unit count declined -14.0% from 2024–2026 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
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
18.8%
vs 11.0% across 35 health & wellness systems
Cost to open
$2K–$834K
Item 7 total investment range
SBA loan defaults
9.4%
vs 14.8% avg across rated brands
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
2024–2026
Survival record
FDD Item 20 · outlet status by year
In fiscal 2026, 815 of 4,346 franchised outlets left the system — a 18.8% 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) | 2024 | 2025 | 2026 |
|---|---|---|---|
| Outlets at start | 4,658 | 4,544 | 4,347 |
| Opened | 459 | 405 | 376 |
| Transfers | 63 | 79 | 91 |
| Terminations | 432 | 476 | 619 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 141 | 126 | 196 |
| Outlets at end | 4,544 | 4,347 | 3,908 |
| Net change | -114 | -197 | -439 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 152 SBA-backed loans to HEALTH MART franchisees since 1991. Of the 85 that have resolved, 9.4% were charged off (defaulted) rather than paid in full, versus 14.8% across 570 rated brands.
9.4%
8 of 85 resolved defaulted
71.4%
avg. charged-off $ ÷ approved $
6.7%
default rate × loss severity
$793,621
what recent franchisees borrowed
67 mo
approval → charge-off, defaulted loans
9 vs 18
distinct banks — pulling back
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO HEALTH MART BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
First Financial Bank
39.3% of this brand's loans
That lender charges off 13.1% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
80.3%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 152 SBA 7(a)/504 loans to HEALTH MART franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
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 $2K–$834K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$2K–$834K
all-in investment range
Franchise fee (Item 5)
$0
upfront, one-time
Royalty (Item 6)
—
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
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 HEALTH MART with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 4 wage cases against operators of this system, recovering $11K in back wages for 4 workers, including 1 child-labor case. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
4
Back wages owed
$11K
Employees affected
4
Since 2020
1
1 of these cases involved child-labor violations, covering 1 minors across the system's franchised locations.
Read this carefully. The employers in these cases are individual HEALTH MART franchisees — separately owned businesses operating under the brand name — not HEALTH MART itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2025.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 94% of systems we score.
Risk percentile
6 / 100
Loan-corroborated
Modeled SBA charge-off
6.4%
Observed SBA charge-off
9.4%
Top drivers: System size (log units) (lowers) · Share financed by high-loss lenders (lowers) · Item 20 exit rate (raises) · Item 3 litigation (log) (lowers). 15+ resolved loans stand behind this estimate. 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
Biz in the Valley: Beaver Health Mart closes, Neighborhood North to open digital makerspace & more
news:Beaver County Times · 36mo ago
Streetwise: Lineville Health Mart closing leaves customers in limbo
news:Green Bay Press-Gazette · 91mo ago
New Berlin Health Mart Pharmacy closed since police raid on March 24
news:Milwaukee Journal Sentinel · 127mo ago
11 questions to ask a HEALTH MART 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 HEALTH MART has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
HEALTH MART’s own Item 20 shows 815 of 4,346 franchised outlets left the system in fiscal 2026 — about 18.8%. 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 · FY2026
- 02
91 units transferred to new owners in fiscal 2026. 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 · FY2026
- 03
The system went from 4,544 units to 3,908 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2024–FY2026
- 04
Of 85 SBA loans to HEALTH MART franchisees that have finished, 9.4% were charged off — the borrower didn't repay. Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of failure, from public federal records, and it is independent of anything the franchisor discloses.
SBA 7(a)/504 loan record, FY1991–present
- 05
Item 7 says the low end to open is $2K, but the average recent SBA loan to a HEALTH MART franchisee was $794K. 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+
- 06
HEALTH MART’s FDD makes no financial performance representation at all — legally, they've told buyers nothing about earnings. What did your first 24 months actually look like, month by month?
When a franchisor won't publish numbers, existing owners are the only source. Silence in Item 19 is a choice, not a requirement.
FDD Item 19 · 2026
- 07
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
- 08
Item 3 discloses 10 legal matters. Do you know what those were about, and were any brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2026
- 09
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
- 10
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
- 11
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 HEALTH MART’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 HEALTH MART'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.
HEALTH MART franchise questions, answered from the filings
What percentage of HEALTH MART franchises closed last year?
In HEALTH MART's latest FDD Item 20 (fiscal 2026), 815 of 4,346 franchised outlets left the system — an annualized exit rate of 18.8% — 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 HEALTH MART franchise cost?
Per HEALTH MART's 2026 FDD, buying in requires an initial franchise fee of $0 (Item 5) and a total initial investment of $2K–$834K (Item 7).
Does HEALTH MART disclose earnings (Item 19)?
No — HEALTH MART's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.
How often do SBA loans for HEALTH MART franchises default?
Across 152 SBA-backed loans to HEALTH MART franchisees since 1991, 8 of the 85 that have resolved were charged off — a 9.4% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.