This blog is a step by step guide on how to start a franchise for a top pharma company. But before we take the plunge, allow us to elaborate on the concept of Pharma franchise and PCD Pharma.
What is a Pharma Franchise and how is it different from a PCD Pharma?
Though Pharma Franchise and PCD Pharma are conceptually same and follow the same business model, difference in certain technical aspects sets them apart.
- The scope of Pharma franchise is broad as the operations are spread over a large area whereas, the allotted area in a PCD Pharma is small thus limiting the scope.
- A franchise starts with a high minimum order and therefore requires a decent investment in setting up the business. PCD Pharma, on the other hand, can start with a low starting order.
- A pharma franchise distributor should be able to show at least 10 years of experience in the pharma sector.
Steps involved in starting a Pharma Franchise Business
- Choose a Pharma Company
Extensive market research could help a franchise aspirer choose the right company. Determine your prospective company’s performance by checking out its past financials, meeting the company’s clients, reading through its CSR policies, etc.
- Pharma Products
Associate with a pharma company that offers the products on your wish list. Make sure that the pharma products listed by the pharma company are readily available and not faked to lure prospective clients.
- Payment Terms
Fill out the gaps in payment terms before you sign the agreement. Avoid grey areas by documenting terms and conditions related to payments such as whether you are making a partial advance payment or paying in full to the pharma franchise company.
- Monopoly Rights
Apply for monopoly rights for pharmaceutical propaganda cum distribution in your area of interest. This is crucial if you are just starting out and would like to minimize competition.
- Pharma Franchise Agreement
Draft a business agreement to be duly signed by both parties i.e. the franchise pharma company and the franchise distributor.
Once all the above-mentioned steps have been taken care of, it is time to take a leap.
For more information on taking the franchise from pharma companies in India, call at +91 9888885364.