Pharmaceuticals is one of the most booming and evergreen industries in the USA with retail giants like CVS Pharmacy, Health Mart, etc expanding rapidly with an increasing number of retail stores around the country. You must be curious is cvs a franchise or not?
Pharmaceutical Industry clocked USD 534.21 Billion in Financial Year 2020 and is predicted to grow to USD 861.67 Billion by 2028 with an expected CAGR of 6.3%.
The major reasons behind this aggressive growth as per experts are
- Aging Population: There are more than 46 million people of age more than 65 years in the country and this number is expected to double to 90 million by the year 2050!
- Increase in chronic diseases: Chronic patients have increased to 133 million in the USA. There is an increase in the number of personnel who are suffering from diseases like diabetes, cancer, heart-related issues, etc.
These factors clearly show why the Pharmaceutical industry which includes Pharmacy franchise retailers like CVS.
What is CVS Pharmacy store?
CVS (Company Value Stores) is an American healthcare company that owns CVS Pharmacy: a retail pharmacy chain, CVS Caremark: Prescription Management, Aetna: Health Insurance Provider, etc.
Founded in 1963, in 2021 CVS Health was ranked 4th in Fortune 500 List. Today they have more than 9600 retail outlets around the world related to pharmacy and healthcare.
Is CVS a Franchise Opportunity?
CVS is not a franchise opportunity in the Pharmaceutical industry. But it proves to be a great option to start your business with, not only do they sell prescription drugs but they also sell a range of beauty products and general goods. They also provide healthcare services through more than 1100 medical clinics called MinuteClinics.
|CVS Franchise Review and Information|
|Founder/Management Head||Stanley Goldstien, Sidney Goldstein, Ralph Hoagland|
|Franchising Started||Not Franchsing|
|Employees at Company H.O||203,000|
|Franchise Expansion Plan||–|
|Number of Units||500+|
|Number of Franchise Units||–|
|Social Media Handles|
|Company Office location||Rhode Island, United States|
CVS Franchise Requirements
You can not operate a CVS Pharmacy at present, therefore you simply can not find out what the costs and official financial requirements are for starting a pharmacy. Yet according to our estimated study, it will cost between $2,000,000 and $3,000,000 to open a new pharmacy. The size of the pharmacy, the price of the land, and the expenditures of building are undoubtedly variable factors.
The majority of these expenses are related to running a pharmacy, including leasing, staffing, and inventory costs. The location will determine whether you rent a place to run the pharmacy.
|CVS Franchise Price and Costs|
|CVS Franchise Fee||$ 9250|
|CVS Franchise Cost||$9250|
|Term of Agreement||–|
|Is franchise term renewable?||–|
|Renewable Franchise Fees||–|
How much do CVS franchise owners make?
CVS Pharmacy fails to franchise its operations so calculating the profit a franchise owner makes is quite impossible. However, we hope that the brand starts franchising. We will undoubtedly provide you with the details thereafter.
What is CVS franchise profit?
CVS pharmacy does not provide franchises to prospective franchisees, but the overall revenue for CVS Pharmacy in 2022 was $322.5 billion, according to Fierce Health Care. This is a 10.4% increase over their revenue of roughly $292.1 billion in 2021.
According to estimated industry standards, getting a return on the franchise investment might take a very long time.
CVS Training to Franchises
CVS does not provide franchises so there fails to be any training provided as well.
CVS Operations to Franchises
Despite being unable to franchise a location, CVS Pharmacy is still open for business. The following companies are supported by CVS’s supplier program in their efforts to source goods:
- Minority-and-Women-Owned Enterprises (M/WBEs)
- Small Business Enterprises (SBEs)
- Disadvantaged Business Enterprises (DBEs)
- Lesbian, Gay, Bisexual and/or Transgender Business Enterprises (LGBTBE)
- Disability-Owned Business Enterprises (DOBEs)
- Historically Underutilized Business Enterprises Zones (HUBZone)
How is CVS Territory Granted to Franchises
It is not disclosed in the FDD as CVS does not provide franchises.
What is the CVS Pharmacy Store Franchise Term of Agreement and Renewal?
CVS does not provide franchises so there does not exist any relevant data as of now that talks about the term of the agreement and renewal of their franchise.
Does CVS provide Financial Assistance to Franchises?
There is no reference to financial assistance provided by CVS Pharmacy to franchisees as they do not franchise their operations, making the question of providing financial assistance baseless per se.
Pros & Cons of owning a CVS Franchise
Pros of owning a CVS Pharmacy Franchise
- Big name brand recognition
In the pharmacy market in the US, CVS Pharmacy is very well known When there is a CVS on every corner that is accessible and convenient for everyone, it is tough to miss them. They also have numerous locations across the country apart from that. Both their company’s size and its reputation are incredible. If you were to franchise a CVS, be aware that you would be working with one of the biggest names in the business.
- One-stop pharmacy
CVS Pharmacy offers more than just prescribed drugs. When you enter a CVS, you get the impression that you are inside a mini-mart or department store filled with aisles of food, beauty, and cosmetic products, along with other stuff. Moreover, the pharmacy provides photo services as well.
When it comes to convenience, CVS resembles a one-stop pharmacy where you may do a variety of tasks. When opposed to other pharmacies that solely deal with medications, this is a benefit.
As already mentioned, CVS does more than merely sell prescription medications. What makes CVS pharmacy a successful brand is the brand’s concentration on other services. Its healthcare services are currently being strengthened and expanded. This demonstrates that CVS is thinking ahead rather than merely operating inside their current framework.
- Supports diverse businesses
A productive workplace is one where one business helps another. Registering with CVS will allow you to become a provider. Furthermore, CVS gives priority to a number of businesses, including those run by women, people with disabilities, people of color, and many more. Many people’s communities can be improved by supporting these varied businesses, and CVS is advancing this program for them.
Cons of Owning a CVS Store Franchise
There are more pharmacies in the United States besides CVS Pharmacy. They may have 9,000 locations, but so do Walgreens, which has 8,000, and Health Mart, which has over 4,000. The pharmacy industry is highly competitive. Amazon and other online pharmacies are competitors of CVS.
Another option is telemedicine, which uses technology to deliver healthcare and has grown in popularity. To compete with rival pharmacies and avoid falling behind, CVS Pharmacy may require additional efforts to keep providing top-notch services.
- Lack of presence at a global level
Although being relatively well-known in the United States, CVS Pharmacy does not really exist elsewhere. Their revenue would improve if they expanded worldwide. Perhaps CVS can plan for this in the near future.
- Bad reviews by employees
Although CVS Pharmacy may be a respectable business and brand, there have been a number of unfavorable employee reports. One worker said in a compilation video that the atmosphere at CVS was toxic. The statement went on to say that the management was “horribly unqualified” and that the working environment was equally terrible. Another evaluation said that management was sexist and racist in addition to the district managers being incompetent.
Even though there are thousands of locations in the chain, these are just a few comments, so it would be in CVS’s best interest to visit them and speak with the staff to learn more about the working environment.
- The $3 coupon
If you discover an expired item in a CVS shop, they will give you a $3 coupon. One TikTok user posted a video showing them bringing several expired things to a CVS store counter to redeem a $3 coupon, including milk cartons, chips, and cookies.
It appears that CVS issues this coupon as a result of a legal dispute and there is no restriction on the number of coupons you can obtain.
Although this might be advantageous for customers, it only raises the issue of whether CVS even goes through its inventory to replace things that have run out or does it entirely work without it. This could result in a negative reputation for selling food, drinks, and possibly even outdated medication.
What are CVS reviews?
If only they would let it, CVS Pharmacy would appear to be the ideal franchise with billions in terms of revenue. Since they have so many locations, practically anyone may visit them and their name is widely recognized throughout the United States. In addition to this, they provide a wide range of services, making them more than simply your typical pharmacy. We hope that eventually, they will allow franchising, which might potentially boost their earnings even more.
Especially now that health is a top issue for more people in the United States, franchising a pharmacy can prove to be a smart move. Although you might not be able to franchise a CVS Pharmacy at the present, you might be on the right track if you consider a different pharmacy-related business opportunity.
Franchise Deck Analysis and Overview
Owning a pharmacy business has a number of advantages. You will be able to draw on a customer base that is already developed to start. These individuals are probably going to repeat customers, which can assist you in developing a solid customer base.
You will gain from the franchisor’s marketing and promotion initiatives as well. Your business may expand and draw in new clients as a result of this exposure. The franchisor’s purchasing power will also be available to you, which could allow you to reduce your expenditures on inventory and other operating expenses.
Unfortunately, CVS Pharmacy cannot be franchised. CVS Health Corporation owns every CVS location. But do not worry. You can. still conduct business with CVS by acting as a supplier or making an investment in the business by buying stock.
Potential Risks to consider before investing in a CVS franchise
Sadly, a CVS Pharmacy cannot be franchised. Owning any pharmacy franchise does come with some risks, though, just like any other business opportunity. The largest risk is that you might not be able to make enough money to pay for your startup costs and ongoing operational expenses.
This is especially true if you select a franchise that doesn’t have a strong reputation in your area or if you do not have a solid marketing strategy. You will also be in charge of complying with all pharmacy-related state and federal rules, which can be difficult and time-consuming.
Competition Analysis of CVS Franchises
|CVS||Cost to Franchise||Franchisee Fees||Royalty + Ad fees||Expected Profit||Recoup of Capital||FD Rating|
|CVS Franchise||$9250||$9250||–||$322.5 billion||–||3.3/5|
|Medicap Franchise||$22,100-$447,000||$15,000||3%+1%||16-22% (branded medicine) 20-50% (generic medicine)||–||3.6/5|
|The Medicine Shoppe Franchise||$77,000-$152,500||$10,000||2-5.5%||–||–||3/5|
|Benzer Franchise||$157,810-$304,110||$2500||$800/month||$6.6 million||–||4/5|
|Good Neighbor Pharmacy Franchise||$278,797-$575,705||–||–||–||–||3/5|
|Health Mart Franchise||$2,275-$654,250||–||$355/month+$25/month||–||–||4/5|
The Franchise Deck rating for the CVS Pharmacy franchise is 3.3/5.0.
However CVS pharmacy franchise fails to exist per se, it is time to decide if such a business opportunity is suitable for you now that you are familiar with the fundamentals of running a pharmacy franchise. If you believe you have what it takes to run a profitable pharmacy, look into the various franchisors and choose one that best suits your requirements. Once you have located the ideal franchisor, follow their instructions to begin creating your own prosperous business.
A pharmacy franchise can be a fantastic path to business ownership. However, it is crucial to do your homework and carefully select a franchisor. You can gain from an established client base, thorough training, support services, and a fair franchise fee with the proper franchisor.
- Medicap Franchise
- The Medicine Shoppe Franchise
- Benzer Franchise
- Good Neighbor Pharmacy Franchise
- Health Mart Franchise
- Walgreen Pharmacy Franchise
- Humana Pharmacy Franchise
Frequently Asked Questions (FAQs)
- Is the CVS franchise profitable?
It is impossible to evaluate the profitability of owning a franchise with CVS because there are no franchise choices available in their system.
- Can you make money owning a CVS?
You can make money but CVS does not franchise its operations.
- Is a CVS a franchise?
No, CVS is not a franchise.
- How much is a CVS franchise?
It is not a franchise, so there fails to be any information regarding the costs to be incurred to buy its franchise.
- How do CVS franchises make money?
The pharmacy business of CVS pharmacy generates profits by selling prescribed drugs and offering services linked to pharmacies.