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Good Neighbor Pharmacy Franchise ProfileRetail Franchises > Specialty Retail |
What Are the Initial Investment Requirements for a Good Neighbor Pharmacy Franchise?
To become a Good Neighbor Pharmacy franchisee, you will need to prepare for an initial investment ranging from $278,797 to $574,705. This includes a franchise fee of $1,797 and ongoing royalty and marketing fees of 3% and 2%, respectively. Additionally, you should have a net worth between $120,000 and $150,000 to qualify. It's essential to ensure you have sufficient cash reserves to cover these costs and sustain operations in the early stages.
What Is the Average Revenue Potential for a Good Neighbor Pharmacy Franchise?
The average annual revenue for a Good Neighbor Pharmacy unit is approximately $1,100,000, with a median revenue of $791,000. The revenue can vary significantly, with the lowest reported annual revenue at $1,000 and the highest reaching $1,359,518. Understanding these figures can help you assess the potential profitability of the franchise and inform your financial planning.
What Are the Operational Costs Associated with Running a Good Neighbor Pharmacy Franchise?
Running a Good Neighbor Pharmacy involves various annual expenses totaling around $278,250. Key costs include rent ($120,000), utilities ($60,000), and professional services ($24,000). These operational costs are critical to factor into your financial projections, as they will impact your overall profitability and cash flow management.
How Long Does It Take to Break Even with a Good Neighbor Pharmacy Franchise?
Franchisees can expect to reach breakeven within approximately 18 months from the start of operations. The investment payback period is estimated at 24 months, meaning you could start seeing a return on your initial investment within two years. This timeline is vital for potential franchisees to understand as it influences financial planning and expectations for profitability.
Good Neighbor Pharmacy Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Good Neighbor Pharmacy Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 294 | 259 | 240 |
| Net Change YoY | -35 | -19 | |
| Franchised Units | 294 | 259 | 240 |
| Net Change YoY | -35 | -19 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY |
Initial Investment
The Good Neighbor Pharmacy franchise offers a range of investment options for aspiring franchisees, with an initial investment ranging from $278,797 to $574,705. This amount includes the initial franchise fee of $1,797, making it accessible for those looking to enter the pharmacy industry with a reputable brand.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $1,100,000 per unit, with median annual revenue reported at $791,000. The revenue potential varies significantly, with the lowest annual revenue at $1,000 and the highest reaching $1,359,518, showcasing the opportunity for strong financial performance.
Breakeven and Payback
The breakeven period for a Good Neighbor Pharmacy franchise is around 18 months, allowing franchisees to recover their initial investment relatively quickly. Additionally, the investment payback period is estimated at 24 months, providing a clear timeframe for profitability.
Franchise Growth
Good Neighbor Pharmacy has experienced a gradual decline in the number of franchised units, with 294 units in 2020, 259 in 2021, and 240 in 2022. This trend highlights the importance of understanding market dynamics and the competitive landscape when considering franchise ownership.
Ongoing Fees
Franchisees are required to pay a royalty fee of 3% on gross sales, in addition to a marketing fee of 2%. These ongoing fees contribute to the brand's overall marketing efforts and support services, ensuring franchisees benefit from a strong collective brand presence.
Financial Performance
The average financial performance of Good Neighbor Pharmacy units shows a gross profit margin of 3.5%, with operating expenses accounting for 2% of revenue. Understanding these financial metrics is crucial for franchisees to effectively manage their operations and optimize profitability.
Frequently Asked Questions
The initial investment for a Good Neighbor Pharmacy franchise ranges from $278,797 to $574,705, which includes the franchise fee and other startup costs.