Health Mart Pharmacy Franchise Costs $251K – $674k (2024)
Health Mart Pharmacy is a franchised network with thousands of independent pharmacies across the United States. It was established in 1996 and began franchising in 1997. The franchise operates under Health Mart Systems, Inc., a subsidiary of McKesson Corporation. Headquartered in Irving, Texas, the network supports pharmacies tailored to the unique demands of their local communities.
This franchise distinguishes itself by providing owners with competitive resources. These include access to managed care networks, marketing support, and operational tools. At the same time, it preserves the independence of its pharmacies. This approach allows a balance between autonomy and the advantages of a broader corporate network.
Health Mart’s main selling point is its commitment to high standards of customer satisfaction and community health, which has earned it multiple industry accolades. This is proof of its effectiveness in providing comprehensive support and competitive advantages to its franchisees.
Initial investment
Here’s what you can expect to spend to start a Health Mart Pharmacy franchise.
Type of Expenditure | Amount |
---|---|
Leasehold Improvements | $60,000 – $115,000 |
Fixtures and Equipment | $30,000 – $80,000 |
Inventory including Merchandise | $60,000 – $110,000 |
Insurance | $2,000 – $10,000 |
Supplies | Lump Sum |
Business Licenses | $350 – $2,000 |
Utility and Lease Security Deposits | $250 – $500 |
Computer Hardware and Software | $10,000 – $45,000 |
Grand Opening and Initial Advertising and Promotion | $0 – $10,000 |
Additional Funds (3 months) | $87,000 – $280,000 |
Total | $251,000 – $674,000 |
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
Health Mart Systems, Inc. does not charge an initial franchise fee. This allows potential franchisees to begin their operations without a significant upfront financial burden.
Royalty Fee
Franchisees are required to pay a monthly fee of $390, which includes some services provided by the franchisor to support ongoing franchise operations.
Digital Program/Digital Portfolio
The fee for the Digital Program/Digital Portfolio is currently $0 for the Basic plan. This program ensures the franchise’s web presence, facilitating online customer interactions and prescription management.
Front End Solutions
Front End Solutions involves a monthly fee of $50 for qualified franchisees who choose to participate. These solutions are designed to enhance the in-store experience through monthly in-store merchandising.
Relay Health
If a franchisee elects to participate in the McKesson Reimbursement Advantage (MRA) program, they must use the Relay Health Intelligent Network switching service. The fees for this service vary based on claim volume, which implies a flexible cost depending on the pharmacy’s operations scale.
Retail Vaccine Program
There are several fees associated with the Retail Vaccine Program, including a $250 one-time fee for the Vaccine Starter Kit and an annual fee of $600, billed monthly, for vaccine costs if a franchisee opts into this program.
Training Fees
While there are currently no fees for mandatory initial online training, optional training courses are available, and costs can vary. For example, some online training classes may cost up to $2,200 per person.
How to apply
Opening a Health Mart 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 Health Mart Pharmacy franchise.
1. Research and Understand the Health Mart Pharmacy Franchise
- Start by gathering information about Health Mart Pharmacy and its franchise model.
- Understand the brand’s market position, competition, and unique selling propositions.
- Learn about the franchise benefits, such as access to group purchasing and shared marketing efforts.
2. Review the Franchise Disclosure Document (FDD)
- Obtain the Franchise Disclosure Document, which provides detailed information about the franchise.
- Carefully review all sections, focusing on fees, obligations, legal issues, and historical performance.
- Consider consulting with a franchise attorney to better understand the implications of the FDD.
3. Evaluate Financial Requirements and Funding Options
- Assess the initial investment required, which includes franchise fees, start-up costs, and necessary working capital.
- Explore financing options such as bank loans, SBA loans, or franchisor financing if available.
- Prepare a detailed financial plan to ensure the feasibility of the franchise purchase.
4. Choose a Suitable Location
- Identify a location that aligns with Health Mart Pharmacy’s demographic and market requirements.
- Consider factors such as foot traffic, competition, local demand, and accessibility.
- Work with real estate professionals if needed to find an optimal site.
5. Submit Your Franchise Application
- Complete and submit the franchise application form to Health Mart Pharmacy.
- Provide necessary documentation and personal information for background checks.
- Await approval, which may involve interviews or additional screening processes.
6. Attend Training and Onboarding Programs
- Participate in training programs offered by Health Mart Pharmacy, which may include operations management, product knowledge, and customer service.
- Understand the franchisor’s operational guidelines, technology systems, and business practices.
- Build relationships with other franchisees and the franchisor’s support team.
7. Launch Your Franchise
- Plan and execute a launch strategy that may include a grand opening event, local advertising, and promotions.
- Implement operational standards and practices as trained.
- Begin serving customers, managing daily operations, and continuously engaging in marketing efforts to grow your business.
Disclaimer
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