Buying a Medicine Shoppe franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing Medicine Shoppe (classified mostly as Pharmacies and Drug Retailers), totaling $15.8M. The median loan was $1,425,000, 121% higher than the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of The Medicine Shoppe resale loans landed between $1,160,000 and $2,226,250.
- Lender experience exists. First Financial Bank alone has financed 5 The Medicine Shoppe resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Medicine Shoppe resale
The median SBA 7(a) loan for a Medicine Shoppe resale was $1,425,000 across 10 loans (FY2018 to FY2026). First Financial Bank, Live Oak Banking Company and Unison Bank have financed the most The Medicine Shoppe resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
The Medicine Shoppe acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 3 | $4M | $1,340,000 | |
| FY2020 | 4 | $6.4M | $1,425,000 | |
| FY2021 | 1 | $2.7M | $2,682,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $636K | $636,000 | |
| FY2025 | 1 | $2.1M | $2,125,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 The Medicine Shoppe acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing The Medicine Shoppe resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | First Financial Bank | 5 | 50.0% | $6.8M | |
| 2 | Live Oak Banking Company | 2 | 20.0% | $3.8M | |
| 3 | Unison Bank | 1 | 10.0% | $2.7M | |
| 4 | BNC National Bank | 1 | 10.0% | $2.1M | |
| 5 | American Bank of Freedom | 1 | 10.0% | $428K |
States where The Medicine Shoppe units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ohio | 3 | 30.0% | $4.7M | |
| 2 | North Dakota | 2 | 20.0% | $4.8M | |
| 3 | Louisiana | 2 | 20.0% | $2.1M | |
| 4 | New Jersey | 1 | 10.0% | $2.4M | |
| 5 | Alabama | 1 | 10.0% | $1.4M | |
| 6 | Illinois | 1 | 10.0% | $428K |
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Questions buyers ask
How much do buyers borrow to buy a Medicine Shoppe franchise?
The median SBA 7(a) loan for a Medicine Shoppe resale was $1,425,000 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $1,160,000 to $2,226,250. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance The Medicine Shoppe acquisitions?
First Financial Bank has made the most SBA acquisition loans for The Medicine Shoppe (5, 50% of the total). Live Oak Banking Company, Unison Bank, BNC National Bank follow.
What interest rate and term do The Medicine Shoppe acquisition loans carry?
The average initial rate at approval was 7.05% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Medicine Shoppe resale riskier than other SBA-financed acquisitions?
Too few The Medicine Shoppe acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are The Medicine Shoppe units being bought with SBA loans?
Ohio (3), North Dakota (2), Louisiana (2), New Jersey (1), Alabama (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Pharmacies and Drug Retailers acquisitions
- Ohio acquisitions
- North Dakota acquisitions
- Louisiana acquisitions
- First Financial Bank
- Live Oak Banking Company
- American Bank of Freedom
- All franchise brands
Brand name as recorded by lenders in the SBA file: "The Medicine Shoppe" (franchise code S2592). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.