Skip to main content

What is Pharma Franchise Model? A blog about how franchising works in pharma.

In this article I will tell you about the Pharma Franchise Model and how it is different from other franchise models. Along with Pharma Franchise, I will drop you some basic knowledge about the entire franchise model. Franchise marketing meaning varies from industry to industry. A franchise is a model of distribution and represents the most common business structure that enables the franchisor to capture recurring business from their franchisees. The franchisees are then able to earn profits from the same set of rules, systems and standardized products sold by other franchises across the country. In today's world of marketing, franchising has emerged as a lucrative option for new ventures as it simplifies and streamline the process of starting a business. With so much advanced equipment, efficient manpower, trained professionals etc., many entrepreneurs find it financially rewarding to take up a franchise business. What is Franchising? Franchising is a business strategy that involv

What is Pharmaceutical Franchise?

Franchise is an authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company's products.

That’s same for all sectors with some modifications. When it applies in pharmaceutical sector, it requires some alterations because pharmaceutical sector is different from other sectors.

Pharmaceutical franchise is a form of franchise business that is used when a pharmaceutical company gives franchise to a distributor/person/firm. Pharmaceutical franchise is different in many aspects from other sectors franchise because pharmaceutical sector is regulated sector and marketing is different as compare to other sectors. PCD (Propaganda cum Distribution) is also a sort of franchise business in pharmaceutical sector.

Medicine’s sale depends at doctor’s prescription in pharmaceutical sector that creates difference from other sectors where consumer is actual customer. But in pharmaceutical sector prescriber/consultant i.e. registered medical practitioner is actual customer, not the consumer and sale of medicines is directly proportional to his/her recommendation/prescription.


When a pharmaceutical company grants authorization at monopoly basis to an individual or group enabling them to conduct specific commercial activities i.e. using company name, logo, doing marketing, distribution, selling of products, collecting payment, appointing stockist, distributors etc known as Pharmaceutical Franchise Business and pharmaceutical companies who provides franchise known as pharmaceutical franchise companies.

What is Pharmaceutical Franchise?

In Pharmaceutical Franchise, there is requirement of two entities: one is pharmaceutical company having medicine brands and second is individual or group want to market and distribute these medicine brands.

To under start pharmaceutical franchise business, first we will need to understand distribution channel in pharmaceutical sector. Pharmaceutical distribution channel includes following basic structure:

This is the general distribution chain type. But in pharma franchise distribution chain, distribution chain is somewhat modified. A franchisee could be either from distribution chain or outside and we will place it as Franchisee in distribution chain. It could be CnF, stockist, distributor and wholesaler, any from sales team, retailer or even doctor also.

By the way there is no criteria to become a franchisee of pharmaceutical company, generally sales experience and capability to sell medicines is first thing a pharmaceutical franchisee must have. Some companies set own standards to appoint franchisee but sale are most preferable standard for them also.

Medical representatives are key factors for pharmaceutical companies to generate sale at ground level. Upper level sales team i.e. area sales manager, zonal sales manager and higher level members also directly connected to doctors and medical professionals. That makes them most reliable persons to be a franchisee of a pharmaceutical company and/or ayush medicine company.

Some distributors/stockists also have good relationship with medical professionals and capable for generating sale through prescription and other means, and fulfil the criteria to become franchisee. A pharmaceutical franchisee could be any person/distributor/stockist/CnF/agency/company or any other entity that are capable of providing business to pharmaceutical company.

Pharmaceutical franchise is a mutual business concept where a pharmaceutical company has invested huge money for setting up manufacturing unit or marketing company, has build a long list of medicine’s brand and searching for marketing and promotional partners, on other hand a individual/group i.e. any person from sales team, distributor, chemist, stockist etc having sales experience and want to start own pharmaceutical business with very less investment. These persons generally don’t have knowledge or money for setting up pharmaceutical company but want to market and promote medicine’s brand at monopoly basis for earning handsome income for living or expansion.

For pharmaceutical franchise company, distribution channel will be as like:

In case, any from sales team, a person is franchisee, then distribution chain will be:

In case, any of distributor/stockist/ wholesaler is franchisee, then distribution chain will be:
  • Pharmaceutical Manufacturing Company or Pharmaceutical Marketing Company
  • Franchisee
  • Medical Representative/sales team (Optional)
  • Doctor
  • Retailer
  • Patient

In case, a CnF is franchisee, then distribution chain will be:
  • Pharmaceutical Manufacturing Company or Pharmaceutical Marketing Company
  • Franchisee
  • Sub Franchisee
  • Distributors (If required by Sub Franchisee)
  • Medical Representative/sales team (optional)
  • Doctor
  • Retailer
  • Patient

In case, a Doctor is Franchisee, then distribution chain will be:
  • Pharmaceutical Manufacturing Company or Pharmaceutical Marketing Company
  • Doctor (Franchisee)
  • Distributor
  • Retailer
  • Patient

In case, a chemist/pharmacy is a franchisee, then distribution chain will be:
  • Pharmaceutical Manufacturing Company or Pharmaceutical Marketing Company
  • Retailer (Franchisee)
  • Distributor (Optional)
  • Doctor
  • Patient
Most of cases, if retailer is franchisee, retailer also have wholesale license along with retail drug license.

Check out:

Hope above information is helpful to you...
For any query and suggestion, mail us at


  1. Hi, A Retailer can take a pcd franchise?? Which licence need?

    1. A pharma retailer also can take pcd franchise. Generally wholesale drug license is required but pharma companies would also bill at retail drug license...

  2. I am a individual person want to have a franchise can it be possible and how....?


Post a Comment

Send Distribution/Franchise Query


Email *

Message *

Register your business at

Find pharmaceutical, cosmetics, nutraceutical, ayurveda and alternative medicine's distributors, franchise, suppliers query for free.

If you want to take distribution, franchise or associates with any pharmaceutical, cosmetic or ayush company then you can find it here...

Popular posts from this blog

State Pharmacy Council, Its Constitution and Composition and Functions

State Pharmacy Council: State Pharmacy Council is constituted as per the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council is an authoritative council to regulate Pharmacy Act, 1948 & State Pharmacy Rules, 1951. What is state pharmacy council? State Pharmacy Council means a State Council of Pharmacy constituted under section 19, and includes a Joint State Council of Pharmacy constituted in accordance with an agreement under section 20 under the Pharmacy Act, 1948 & State Pharmacy Rules, 1951. State Pharmacy Council constituted and work under  Pharmacy council of India . Composition of State Pharmacy Council: The State Pharmacy Council consists of the following: i) Six members, elected from amongst themselves by registered pharmacists of the State; ii) Five members, of whom at least three shall be persons possessing a prescribed degree or diploma in pharmacy or pharmaceutical chemistry or registered pharmacists nominated by the State Governme

What are the Schedules under Drug and Cosmetic Act, 1940 & Rules 1945?

Schedules are the set of provisions for classifications of drugs, forms, fees, standards, requirements and regulations related to pharmaceutical, Ayurvedic (including siddha), unani and tibb system of medicines, homeopathy, blood and realted products etc under Drug and Cosmetic Act, 1940 and Rules, 1945. The schedule to the drugs and cosmetics act are Schedule A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y. Drug and cosmetic rules are divided into schedules alphabetically and named also alphabetically like Schedule A, Schedule B etc till Schedule Y. The schedules to the drugs and cosmetics act are important part. Every schedule contains specific information as discussed below. Schedule A:  Schedule A  describes application forms and licenses types. Download Schedule A Pdf Schedule B:  Schedule B  describes Fees for test or analysis by the Central Drugs Laboratories or State Drugs Laboratories. Download Schedule B Pdf Schedule B1: Schedule B1 describes

Schedule T: Good manufacturing practices for ayurvedic, siddha and unani medicines

Schedules:  Schedule A ,  Schedule B ,  Schedule C ,  Schedule D ,  Schedule E1 ,  Schedule F ,  Schedule G ,  Schedule H ,  Schedule H1 , Schedule I,  Schedule J ,  Schedule K ,  Schedule L1 ,  Schedule M ,  Schedule M1 ,  Schedule M2 ,  Schedule M3 ,  Schedule N ,  Schedule O ,  Schedule P ,  Schedule Q ,  Schedule R ,  Schedule S ,  Schedule T ,  Schedule U ,  Schedule V , Schedule W,  Schedule X ,  Schedule Y Schedule T (Rule 157) Schedule T describes the good manufacturing practices for ayurvedic, siddha and unani medicines The Good Manufacturing Practices (GMP) are prescribed as follows in Part I and Part II to ensure that: Raw materials used in the manufacture of drugs are authentic, of prescribed quality and are free from contamination. The manufacturing process is as has been prescribed to maintain the standards. Adequate quality control measures are adopted. The manufactured drug which is released for sale is of acceptable quality. To achieve the objectives list