Cardinal HealthCardinal Health
Mandatorypurchase substantially all of the pharmaceutical inventory for your Medicine Shoppe business from Cardinal Health or one of its designated suppliers, which could be affiliates of Cardinal Health. Card
From the filings
HQ-led decisions
The Medicine Shoppe
Health servicesThe Medicine Shoppe requires every pharmacy to keep an internet-connected computer on premises and to upgrade systems for HIPAA and security compliance as regulators or its pharmacy-systems and POS vendor require, with a POS purchase the company estimates at roughly $7,500 plus training. Across 271 fully franchised US pharmacies on a 5-year initial term, franchised outlets fell 7.2% year over year, and the brand is part of parent Cardinal Health alongside Medicap Pharmacies.
For software vendors selling into US franchise brands.
Live signals
Total units
271
271 franchised
Unit growth YoY
-7.192%
vs prior filing
AUV
—
Item 19, 2025
Royalty
3%
of gross sales
Ad fund
—
national + local
Initial fee
—
per unit
Investment range
$513K–$896K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
3%+of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
EQuIPPEQuIPP
and pay all fees to the third party vendor, if any, arising out of your participation in this program (see Exhibit F - Reconciliation Service Agreement). (04) Provide you with our EQuIPP Program. This
Franchisor behaviours
What the franchisor requires
16 requirements the franchisor states in this filing, each in its own words; 10 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall maintain its books and records in the manner reasonably required by the Company (including use of the Company’s bookkeeping and accounting systems), and provide the Company with such weekly, monthly, quarterly, and annual financial and sales information relating to the business of the Franchisee as…
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
If you use one of our recommended pharmacy management systems, we will have independent access to information in that system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
All monthly financial and sales information shall be prepared in accordance with generally accepted accounting principles and in the form prescribed by the Company and shall be received by the Company no later than the last day of the following month.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
As indicated above, our affiliates Cardinal Health 110, Cardinal Health 112, and RGH are currently the required wholesalers.
Is there a franchisee advisory council, association or committee?
YesItem 20
Owners’ Advisory Council: MSI formed this organization to foster and improve communications and the sharing of information between MSI and its franchisees.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
If provided, the Company may revise the approved supplier list from time to time in its sole discretion.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
For our fiscal year ended June 30, 2025, we had no revenue from the sales or leases of required products and services to our franchisees which is 0% of our total revenues of approximately $3,424,038.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
In addition, third-party suppliers may pay us rebates, based on purchases by our franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
90Item 8
On an ongoing basis, these purchases will represent approximately 90% of your total annual purchases.
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
The Company reserves the right to require Franchisee to obtain the written approval of the Company prior to the use of any supplier of any item used or sold in the Business
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Review and/or inspect the operations of the Business periodically during each year, which shall include, but not be limited to, the right to (i) conduct or observe a physical inventory of the Business; (ii) remove samples of any products, materials and supplies for testing and analysis; (iii) interview personnel of…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisee understands and agrees that the System may be modified and improved in the future, and that such modifications may require changes from time to time in the manner in which the Business is operated.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve your site before you acquire it or begin any development of the location (Franchise Agreement – Section I.A).
Marketing
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
In addition, at the option of the Company, Franchisee must participate in any local or regional advertising cooperative established by the Company, on terms that may be set from time to time by the Company.
People
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall utilize insignia, equipment, decals, personnel uniforms, vehicle signs and colors, indoor signs and posters, and such other materials as are required by the Company to maintain uniformity of appearance, identity recognition, point of purchase impact, and full penetration of promotional opportunities.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
If you use one of our recommended pharmacy management systems, we will have independent access to information in that system.
The filing answers no to 10 questions
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
- Is a minimum grand opening advertising spend required?Item 11
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a customer loyalty or rewards program?Item 11
- Must the franchisee buy products from a designated distributor?Franchise agreement
- Must equipment be purchased from designated or approved suppliers?Item 8
- Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?Franchise agreement
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
- Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?Franchise agreement
- Must the franchisee use a CRM system designated or approved by the franchisor?Franchise agreement
The vendor opportunity at The Medicine Shoppe
271 fully franchised US pharmacies operate on a 5-year initial term, though franchised outlets fell 7.2% year over year. Every pharmacy must keep an internet-connected computer on premises and upgrade its systems for HIPAA and security compliance as regulation, law or its pharmacy-systems and POS vendor requires — a real, recurring technology-refresh need inside a network that sits under parent Cardinal Health alongside Medicap Pharmacies.
Who controls software purchasing
President Brad Cochran also serves as Cardinal Health's Executive Vice President of Pharmaceutical and Specialty Distribution, and National Vice President of Programs and Solutions John Anthony (Tony) Steiner holds a parallel Cardinal Health role — the franchisor and its parent share leadership, which means a technology or compliance pitch aimed at MSI is effectively reaching Cardinal Health's own programs team. Michelle Britt, Cornelius T. Lane III, Julie V. Wilson and Dawn Rich round out the named officers.
Tech named in the FDD, and what is actually required
Every pharmacy must have an on-premises computer with internet access, and must upgrade its systems to stay compliant with HIPAA or other security mandates as required by regulation, law, or its pharmacy-systems or POS vendor. EQuIPP is named in the filing. The company estimates a POS system purchase at roughly $7,500, plus up to about $6,000 in training and related costs depending on the system a franchisee chooses.
Procurement, renewals, and timing
The Medicine Shoppe lets franchisees buy most items from any source that meets its specifications. The one exception is pharmaceutical inventory: a franchisee who elects the Inventory Purchase Addendum must buy at least 95% of that inventory from a Cardinal Health affiliate, while others may use qualified suppliers or buying groups instead. The franchise agreement automatically renews for an additional 5-year term unless either side gives notice of non-renewal at least 6 months before the term ends, and MSI can require its then-current agreement as a condition of renewal — that renewal window, alongside any regulatory-driven system upgrade, is where a technology conversation is most likely to open.
How to read The Medicine Shoppe FDD
The embedded PDF viewer below carries the full 2025 Franchise Disclosure Document. Start with Item 11 for the computer and HIPAA-compliance requirements, Item 8 for the pharmaceutical-inventory purchasing rules, and Item 2 for the officer roster. Talk to FranCloud for a ranked list of pharmacy franchise systems like this one, sized and scored for software fit.
Questions vendors ask
The Medicine Shoppe, answered from the filing
The Medicine Shoppe's franchisor, MSI, is closely tied to parent Cardinal Health, whose National Vice President of Programs and Solutions, John Anthony (Tony) Steiner, also holds an MSI/Medicap VP title. If a franchisee elects the Inventory Purchase Addendum, at least 95% of pharmaceutical inventory must come from a Cardinal Health affiliate.
The filing requires an internet-connected computer on every pharmacy's premises and system upgrades for HIPAA or other security mandates as regulation, law or the pharmacy's systems/POS vendor requires. EQuIPP is named in the filing, and the company estimates a POS purchase at roughly $7,500 plus up to $6,000 in training costs.
The Medicine Shoppe operates 271 pharmacies in the US, all franchised with none company-owned, though franchised outlets fell 7.2% year over year.
The Medicine Shoppe lets franchisees buy from any source that meets its specifications, with one exception: a franchisee who elects the Inventory Purchase Addendum must buy at least 95% of pharmaceutical inventory from a Cardinal Health affiliate, or may otherwise use other qualified suppliers or buying groups.
The Medicine Shoppe's franchise agreement automatically renews for an additional 5-year term unless either side gives notice of non-renewal at least 6 months before the term ends, and MSI can require the then-current agreement as a condition of renewal. That renewal window is a natural point to reopen a technology conversation.
The embedded PDF viewer below holds The Medicine Shoppe's 2025 Franchise Disclosure Document in full. Read Item 11 for the computer and HIPAA-compliance requirements and Item 8 for the pharmaceutical-inventory purchasing rules.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment The Medicine Shoppe files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
289 operators run 311 mapped locations. 13 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit276
2–9 units13
Top states by locations
| PA | 42 |
|---|---|
| CA | 41 |
| MO | 19 |
| OH | 17 |
| FL | 16 |
Ownership
The portfolio behind The Medicine Shoppe
strategic_multibrand of Cardinal Health.
Sibling brands
Related Health services brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.