Is the pharmaceutical industry a wise investment to make? That’s a tough call and only one you can make, but there is a lot of growth potential as new drugs continually hit the market. One of the ways to protect yourself from litigation and avoid the hassles of FDA approvals for new medicines is to simply sell the approved medicines in a pharmacy setting. With the Medicine Shoppe, you’ll get that opportunity in a franchised pharmacy model that was started in 1968 by a licensed pharmacist. Not only will you provide prescriptions with this franchise opportunity, but you’ll also provide a wide array of over-the-counter products and health screenings that can give people the personal care they may need.
What Are the Initial Costs of This Franchise?
The benefits of investing into this organization becomes immediately evident when you see the low costs that are required. The initial franchise fee is just $10,000 and there is a net worth requirement of just $50k to get started. With over 1,300 total franchises operating around the country right now, the Medicine Shoppe gives you instant brand awareness. You become a destination shop where people will come to you when they need something. In return, you pay just a 4% royalty on your gross sales. In some cases, you can reach your grand opening with as little as $77k in a total investment.
The total agreement term for the initial franchise is 20 years and it is renewable. The typical starting costs can be as low as $74k to get the franchise up and running, but the high estimate of the initial investment could reach $253k. To avoid the monthly royalties, which for some locations could top $20k per month, there is a reduced monthly royalty of $499 that can be paid instead that will provide a smaller set of services for a national presence. A liquid capital requirement of at least $100k is required to qualify for this opportunity.
The one added benefit that you receive with this investment opportunity through Cardinal Health, who owns the Medicine Shoppe brand, is that you can convert an existing pharmacy into a Medicine Shoppe location. You can also decide to purchase an existing pharmacy or open a brand new location depending on what your specific community needs happen to be. Opportunities for a Medicine Shoppe exist in all 50 states and there are limited international opportunities available as well.
You will need to complete a qualification profile in order to become a franchisee. Upon approval of your profile, you can then move to the next steps of the investment process. This may include working with a site-selection expert with the organization and representatives from the organization’s real estate department
What Kind of Support Is Received With This Investment?
You can receive as much or as little training as you may require as a franchisee in this model. The highest priority is given to independent pharmacists who run their own shop already and are looking for a national affiliation. With an independent pharmacy becoming a Medicine Shoppe, the pharmacist immediately becomes part of a national network that can be accessed from a centralized website. This allows people to find a way to get their scripts filled, even if they happen to be out of town on pleasure or business.
This brand is a results-driven brand that focuses on high-quality ownership above all else. A strong customer-focused mindset must be in place before approval of the franchise application will be considered. If this can be demonstrated, along with the financial requirements, then the training you’ll receive if you’re not a pharmacist will be an intensive, interactive series of sessions that will give you the a look at each discipline within the pharmacy business.
Part of the reason why a pharmacy is able to succeed today is by being able to provide quality medications to their customers. Because you’re partnering with Cardinal Health as a franchisee in this model, you’ll gain access to the very best resources, services, and products that are available to the pharmaceutical industry at this very moment. You’ll also be able to provide your community with the information that each household needs to be able to maximize their own personal health and provide a series of non-script products that they can purchase to maintain these maximum levels.
It’s a full turn-key approach that is provided. Not only will you receive store development services as a franchisee, but you’ll also receive specific marketing support that will help increase community awareness of your new business. You’ll receive purchasing assistance and upgrades in technology if required. There is support for the overall operations of your Medicine Shoppe and consulting support is provided on an as-needed basis as well. The purpose is to provide managed care so that each treatment plan a customer needs can be provided for in a minimally invasive way.
Is This the Right Business Opportunity For You?
Even though the financial requirements are fairly low and the royalties as a percentage are lower than other industries, this business does require some specific knowledge in order for an investor to truly be successful. If you have an understanding of the health services industry or operate a pharmacy already that is independent of any national brands, then the Medicine Shoppe could be the perfect opportunity for you to gain more traffic.
If, however, you don’t have experience in health care or you don’t have a passion to help people when they are sometimes at the very end of their rope, then this investment opportunity may not make sense for you. The first step in the process is to speak with Cardinal Health about your desires to open a franchise and you will then proceed from there. Speak with them today to determine for certain if this is a wise investment for you to make!