986 Pharmacy vs Medicap Pharmacy
986 Pharmacy vs Medicap Pharmacy: 986 Pharmacy costs $150K to $895K to open; Medicap Pharmacy costs $50K to $409K. 986 Pharmacy has 7 units, Medicap Pharmacy has 96. SBA loan history: 986 Pharmacy = 10 loans (0.0% default); Medicap Pharmacy = 131 loans (3.8% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
986 Pharmacy vs Medicap Pharmacy: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Medicap Pharmacy requires the lower minimum capital commitment ($50K vs $150K for 986 Pharmacy), a 200% spread. Initial franchise fees come in at $50K for 986 Pharmacy versus $50K for Medicap Pharmacy.
System Scale & Tenure
On scale, Medicap Pharmacy operates 96 units to 986 Pharmacy's 7, roughly 14× the system size. Medicap Pharmacy has been operating 55 years (founded 1971) versus 12 for 986 Pharmacy (founded 2014), a 43-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Medicap Pharmacy has the deeper SBA lending track record, with 131 7(a) approvals compared with 10 for 986 Pharmacy. 986 Pharmacy's peak SBA year was 2020 (3 loans); Medicap Pharmacy's peak was 2003 (13 loans). 986 Pharmacy's more recent peak generally indicates fresher lender appetite. 986 Pharmacy has the most SBA funded units in CA, with 7. Medicap Pharmacy leads in IA, with 21. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded 986 Pharmacy deals is $526K vs $223K for Medicap Pharmacy, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 0.0% for 986 Pharmacy and 3.8% for Medicap Pharmacy, 986 Pharmacy has the cleaner SBA loss record by 3.8 points. PeerSense FPI scores come in at 46 (Fair) for 986 Pharmacy and 54 (Moderate) for Medicap Pharmacy, giving Medicap Pharmacy the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 46/100 | 54/100 |
Health Tier | Fair | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 10 | 131 |
SBA Volume | – | – |
Default Rate | 0.0% | 3.8% |
Peer Tier | growing | major |
Investment & Costs
Total Investment | $150K to $895K | $50K to $409K |
Franchise Fee | $50K | $50K |
Royalty Rate | N/A | 3% |
Ad Fund | N/A | 0.5% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Disclosed |
System Size & Operations
Total Units | 7 | 96 |
Franchised Units | 7 | 96 |
Company Owned | – | – |
Term Length | N/A | 10 yrs |
Brand Information
Year Founded | 2014 | 1971 |
Franchising Since | N/A | 2025 |
Years Franchising | N/A | 1 yrs |
Headquarters | LA PUENTE, CA | ATLANTIC, IA |
Category | Pharmacies | Pharmacies |
Website | ||
FDD Year | N/A | 2023 |
Which Is Better, 986 Pharmacy or Medicap Pharmacy?
Lower upfront capital required
Tie
986 Pharmacy: $150K starting · Medicap Pharmacy: $50K starting
More SBA lender confidence
Medicap Pharmacy
986 Pharmacy: 10 SBA loans · Medicap Pharmacy: 131 SBA loans
Lower SBA default rate
986 Pharmacy
986 Pharmacy: 0.0% · Medicap Pharmacy: 3.8%
Larger system & brand presence
Tie
986 Pharmacy: 7 units · Medicap Pharmacy: 96 units
More lender financing options
Medicap Pharmacy
986 Pharmacy: 2 unique lenders · Medicap Pharmacy: 61 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
986 Pharmacy vs Medicap Pharmacy: Franchise Funding Comparison
Comparing 986 Pharmacy and Medicap Pharmacy is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $50K to $895K.
986 Pharmacy has 10 SBA loans on record and Medicap Pharmacy has 131. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
986 Pharmacy vs Medicap Pharmacy, Frequently Asked Questions
Which is a better franchise investment, 986 Pharmacy or Medicap Pharmacy?
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Can I finance 986 Pharmacy or Medicap Pharmacy with an SBA loan?
Which has a lower SBA default rate, 986 Pharmacy or Medicap Pharmacy?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman