Good Neighbor Pharmacy Franchise Costs $279K – $575K (2024)
Good Neighbor Pharmacy is a network of independent pharmacies operating under a unified brand supported by AmerisourceBergen Drug Corporation. Based in Chesterbrook, Pennsylvania, it provides local pharmacy owners with a strong brand while letting them run their stores how they see fit.
Founded in 1982, the franchise now boasts thousands of pharmacies across the U.S., each actively engaged with its local community. This model has helped these pharmacies provide personalized service, making them different from large, impersonal chains.
Renowned for its commitment to customer satisfaction, Good Neighbor Pharmacy has consistently received high rankings in J.D. Power’s U.S. Pharmacy Studies. Their slogan, “Locally owned. Locally loved.” emphasizes their focus on community involvement, which has improved local health services.
Initial investment
Here’s what you can expect to spend to start a Good Neighbor Pharmacy franchise.
Type of Expenditure | Amount |
---|---|
Real Property Lease/Leasehold Improvements | $50,000 to $110,000 |
Leasehold Improvement Management Services | $0 to $1,500 |
Furniture, Fixtures, and Equipment | $25,000 to $75,000 |
Pharmacy Management System Hardware and Software | $0 to $15,000 |
Point of Sale System Hardware and Software | $0 to $35,000 |
Interior and Exterior Signage | $0 to $5,000 (interior) $0 to $20,000 (exterior) |
Fees for Optional Goods and Services | $0 to $1,908 (3 months) |
Insurance | $1,500 to $5,000 |
Opening Inventory (exclusive of GNP Private Label Products) | $75,000 to $125,000 |
GNP Private Label Products | $5,000 to $12,000 |
Pharmacy and Business Licenses | $500 to $3,000 |
Additional Advertising and Marketing | $0 to $15,000 |
Additional Funds – 3 months | $120,000 to $150,000 |
GNP Premier Fee – 3 months | $1,797 |
Total Amount | $279,000 to $575,000 |
Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.
Franchise fees & Royalties
Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.
Initial Franchise Fee
There is no initial franchise fee charged upon signing the Premier Agreement with Good Neighbor Pharmacy. However, certain costs for goods or services might be required either at the point of signing or prior to opening a new store.
Royalty Fee
Good Neighbor Pharmacy does not currently charge any royalty fee.
Additional Advertising and Marketing
Good Neighbor Pharmacy charges $0 to $15,000 for additional advertising and marketing activities. This amount can be allocated as agreed upon between the franchisee and the chosen vendors.
Claim Reconciliation Concierge Services
This optional service is available at $199 per month. It provides dedicated support for claim reconciliation tasks that are otherwise self-managed at no cost.
Special Projects
Fees for special projects are variable, based on the time and materials required or a fixed price as negotiated. These are charged for services not covered under other specific terms or agreements.
Late Fee
For overdue payments, a late fee is applied at the lower of 0.05% per day (equivalent to 18% annually) or the maximum rate permitted by law, ensuring timely financial transactions.
GNP Private Label Products
The costs range from $0 to $1,200 for existing stores and from $5,000 to $12,000 for new or minimally stocked stores.
Interior and Exterior Signage
Good Neighbor Pharmacy provides a complimentary signage package that meets minimum requirements. They also offer a purchase match of up to $2,500 for additional signage costs if orders are placed within 180 days of signing the Premier Agreement.
How to apply
Opening a Good Neighbor Pharmacy franchise involves several steps designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Good Neighbor Pharmacy franchise.
1. Research Good Neighbor Pharmacy
- Investigate the background and business model of Good Neighbor Pharmacy to ensure it aligns with your goals.
- Consider the market potential and competition in your desired location.
- Understand the types of services and products offered by the franchise.
2. Review the Franchise Disclosure Document (FDD)
- Obtain and thoroughly review the Franchise Disclosure Document provided by Good Neighbor Pharmacy.
- Pay special attention to sections detailing fees, initial investment costs, legal obligations, and support from the franchisor.
- Consult with a franchise attorney to better understand any legal implications.
3. Secure Financing
- Estimate the total initial investment required, including franchise fees, startup costs, and working capital.
- Explore financing options such as loans, personal savings, or investment from partners.
- Prepare a detailed business plan to present to potential lenders or investors.
4. Choose a Suitable Location
- Identify a location that supports the pharmacy’s potential growth and customer accessibility.
- Consider demographics, competition, and local demand for pharmacy services.
- Coordinate with Good Neighbor Pharmacy to ensure the site meets their criteria and obtain approval for the location.
5. Complete Training and Certification
- Participate in all required training programs offered by Good Neighbor Pharmacy.
- Ensure that you and your staff receive adequate training to operate the pharmacy according to franchise standards.
- Obtain any necessary certifications or licenses required to operate a pharmacy in your jurisdiction.
6. Setup Your Pharmacy
- Follow the guidelines provided by Good Neighbor Pharmacy for setting up your store, including design and layout.
- Purchase and set up the necessary equipment and inventory systems.
- Hire qualified staff and ensure they are trained to meet franchise standards.
7. Launch Marketing and Open Your Pharmacy
- Develop a marketing plan to attract customers to your new pharmacy using local advertising and Good Neighbor Pharmacy’s marketing resources.
- Continuously assess and adapt marketing strategies based on customer feedback and sales performance.
Disclaimer
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