Dashenlin reaches 8,615 franchised pharmacies as fees draw scrutiny

Dashenlin’s pharmacy network is approaching 20,000 outlets, with franchising playing an important role in its expansion. According to a report published by Securities Star on 12 November, the company had 19,791 outlets at the end of September 2026, including 8,615 franchised pharmacies, or 43.5% of the total. For prospective franchisees considering the Chinese market, the fees and operating responsibilities deserve as much attention as the headline figures.

1,325 franchised pharmacies added in the first nine months

The report states that Dashenlin opened 421 outlets itself, acquired 488 and added 1,325 franchised pharmacies in the first nine months of the year, while closing 201. This brought the net increase in its network since the start of the year to 2,033 outlets. Franchising and acquisitions together accounted for 81.2% of gross additions.

In the third quarter, the company added a net 1,065 outlets, more than the total for the first two quarters combined. Net additions in the first nine months also exceeded the 1,205 recorded for the whole of 2025.

These figures measure different things: 1,325 is the number of franchised pharmacies added, whereas 2,033 is the overall net increase across all expansion methods after closures. They should not be treated as equivalent.

Suzhou franchise enquiry reveals fee structure

The report cites enquiries made by business news outlet Zidan Finance to Dashenlin’s franchise recruitment staff. Taking Suzhou as an example, the quoted franchise fee and security deposit were RMB 15,000 each, followed by a monthly management fee of RMB 500 and an annual system usage fee of RMB 1,000.

On that basis, management and system fees total RMB 7,000 a year, but this is not the full cost of running a pharmacy. Dashenlin’s official franchise page separately states that franchisees must invest more than RMB 400,000 and be able to bear the risks of operating the outlet.

The Suzhou quotation should not be assumed to apply nationwide. Applicants should confirm local fees, the conditions for refunding the deposit and any subsequent charges before signing.

Head office supplies stock; sales proceeds go to franchisees

According to the report, head office is responsible for store design and for producing and installing signage and shelving. Franchisees may arrange the structural and interior fit-out work themselves. Each pharmacy must have at least two members of staff, including one licensed pharmacist.

All products are supplied centrally by head office under what it describes as a ‘base-price supply’ arrangement. Sales proceeds go directly into the franchisee’s account, and the company does not take a sales commission.

No sales commission does not mean no ongoing expenditure. Prospective franchisees still need to check quotations and contracts item by item to establish how the actual supply prices and product mix translate into the pharmacy’s gross margin. Recruitment claims alone are not enough to assess potential profitability.

Look beyond network growth and calculate the investment per outlet

The disclosures describe network growth and some franchise terms; they do not directly establish how profitable newly franchised pharmacies are. Investors should assess the brand’s network scale separately from the financial projections for a specific location.

Practical guidance: before signing, obtain a written schedule of local fees, budget separately for fit-out, staffing, stock purchases and recurring charges, and verify the terms covering supply, stock handling and exit arrangements. Use the investment requirement of more than RMB 400,000 as the starting point for calculating funding needs, rather than focusing solely on the franchise fee.