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Health Mart Pharmacy

Health Mart Systems, Inc.

Company Information

6555 State Hwy 161

Health Mart Systems, Inc. was incorporated in the State of Delaware on January 21, 1997. Their principal place of business is 6535 State Hwy 161, Irving, Texas 75039.

We offer franchises for the right to use certain proprietary trademarks (“Proprietary Marks”) and our distinctive and proprietary operating methods and system for establishing and operating Drugstores (the “HEALTH MART System” or “System”). We compile our operating methods, policies, procedures, standards, guidance, and suggestions for running your Drugstore in our Franchise Handbook. You will have access to the Franchise Handbook following execution of the Franchise Agreement. We do not currently operate any retail pharmacies in the U.S. or engage in other business activities at this time. We offer franchises to persons wanting to start a new pharmacy business (“UnOpened Locations”) and persons with existing retail pharmacy businesses interested in converting to a HEALTH MART Drugstore (“Open Locations”). Franchisees of Open Locations and UnOpened Locations will sign the same form of Franchise Agreement (see Exhibit B), which gives you the right to operate your Drugstore at a specific location (“Drugstore Location”) using the Proprietary Marks and the System. Your Monthly Fees (described in Item 6) entitle you to access a number of core support services that we provide to each Drugstore Location, directly or through various suppliers. These Core Services include operational, management, marketing, and merchandising support and technical expertise. Our franchisees currently have access to the following Core Services: > Health Mart OpenSmart, a proprietary online tool that guides pharmacies through the first six weeks of the onboarding, opening and branding process. > Health Mart University (HMU), our online training platform for franchisees. > My Health Mart Web Portal, a proprietary online dashboard that provides information about various third-party programs and facilitates your ordering of products from McKesson. > Pharmacist’s Letter and Natural Medicines, publications of the Therapeutic Research Center, LLC, an independent advisory service on drug therapy and medication management, unaffiliated with us. > Health Mart Purchasing Advantage, a program in which we negotiate discount prices and other purchasing terms with various third-party vendors for the benefit of Health Mart franchisees. > Front-end services, including FrontEdgeSM Planograms that illustrate product layouts and FrontEdgeSM retail pricing advice. > If you elect to sign an agreement with Bula Pharmacy Law Intelligence (“BULA”) in the form of Exhibit D to this Disclosure Document, the BULA Policy and Procedures Module and Regulatory Reference Manual. > If you elect to sign the Health Mart Atlas Pharmacy Participation Agreement attached to this Disclosure Document as Exhibit E, membership in the Health Mart Atlas PSAO. We are continually developing and changing the Core Services in order to keep Drugstores relevant to consumers in a highly competitive environment, and the Core Services available to you may change during the term of the Franchise Agreement. In addition to the Core Services, we may periodically offer certain Enhanced Services and/or optional programs for an additional fee. You may elect to receive an Enhanced Service by initialing the applicable term sheet for the Enhanced Service attached as an exhibit to the Franchise Agreement or later offered as an amendment to the Franchise Agreement. You may elect to participate in any optional program by signing the applicable program agreement. Enhanced Services and optional programs that we currently offer are described in Item 6. We may periodically modify or discontinue any of the Enhanced Services or optional programs that are now in place and add new Enhanced Services or optional programs.

1 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

10/10

Investment Accessibility

10/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Health Mart Pharmacy Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: N.A Maximum: N.A

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $2,470 Maximum: $103,970

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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