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

Pharma Franchise Marketing Vs Pharma Marketing Company

When you want to start own business related to pharmaceutical products marketing, you always have two options to start with. One is starting own pharmaceutical marketing company and second is to start marketing by taking franchise of a pharmaceutical company.

Both have own pros and cons & are the most common way to start own pharmaceutical business. In this article, we will discuss which will be the best from these two to start with, pros and cons, and selection criteria.

First have a look at brief information about pharma franchise marketing and pharmaceutical marketing company. Pharmaceutical franchise marketing is a way to promote and distribute other company’s pharmaceutical products at monopoly basis in which you will have exclusive rights at that particular area and no other person can do distribution or marketing of that company product in your area where as pharmaceutical marketing company is a way to promote and distribute pharmaceutical products by manufacturing own brand named products at third party manufacturing or contract manufacturing basis from pharmaceutical manufacturer by setting up pharmaceutical marketing company.

Now come to discussion. As we have discussed above that both have own pros and cons and selection depend at many factors. Pharma franchise and marketing company set-up requires almost same requirements, experience, conditions, licenses and formalities.

For starting pharma franchise marketing and pharma marketing company, both requires wholesale drug license and in some required cases, GST number also. Investment required and minimum order quantity makes the difference while selecting between these two. Both require basic knowledge of pharmaceutical sales and marketing. You may require learning about some basic business administration fundamentals.

Selection Criteria:

Pharmaceutical franchise marketing requires less investment as compare to pharmaceutical marketing company set-up. In franchise, you can start with minimum investment like 5000, 10000 or any other small amount, and can start working at good range of products (generally above 60 products) included in pharma franchise company’s products list. Whereas in case of pharmaceutical marketing company, you have to order a minimum quantity for a single product like 100/200/300 boxes (for tablets and capsules) and 1000/2000/3000 pieces (for liquid/injections/eye drops etc). You will have to arrange a good amount per product that you want to launch under your own company marketed by.
If you have financial restrictions then starting with pharma franchise marketing is good way to start. But if you don’t have any financial restriction and can invest amount to launch at least 8-10 products (generally 5-10 lakhs investment or depend at product selection) & capability to sell quantity you get from manufacturer under your marketed by within 4-6 months. Then own pharmaceutical marketing company is best possible way to start with.
Four to six month time period, we quoted because if you don’t sell it in that period, you may be trapped into financial difficulties like working capital adjustment, stock maintenance, new products launching etc. Drugs and medicines have expire date and you can sell 6-8 months old manufacturing date goods to old customers but new customers always ask for fresh stocks. After one year from manufacturing date, people start to assume pharmaceutical product as near expiry and new distributors, retailers will avoid taking that stock.

Starting a business may look simple and easy but establishing it, running it and earning living hood income in starting few months is somewhat difficult task. You have to make arrangement of financial saving for your living expenses for several months after starting business either franchise marketing or own marketing company. You can start business as a part time along with job or establish a part time income and then start business so you can stand for long term in market till you start to earn good amount of income from your pharma business.

Check out our video: to learn step wise procedure to start business from job.

How to start Franchise Marketing?

How to start Pharma Marketing Company?

  • Prepare a business plan
  • Choose company name
  • Choose molecules you want to work with
  • Choose brand names for selected molecules
  • Apply for company registration (voluntary)
  • Apply for wholesale drug license
  • Apply for GST number if required
  • Search for third party manufacturer or contract manufacturer
  • Place order
  • Finalize packing design
  • Wait for till manufacturing process completed
  • Receive the products and start working
  • Check out complete procedure to start pharma marketing company here 

Advantage and Disadvantage in starting with Pharma Franchise Marketing and Own Pharmaceutical Marketing Company:

In case of advantage and disadvantage, pharma franchise and marketing company are reciprocal. Ones advantages are others disadvantage. So you should carefully analyse both advantages and disadvantages, and reach at decision from which you should start with.

Pharma Franchise Marketing:

  • Start with low investment
  • Starting time is very less as products is in ready form
  • Get a good range of product to do work and select franchise company having desired molecule in their product list
  • Get Promotional material to work
  • Monopoly rights which prevent infiltration from other nearby distributors
  • You get monopoly rights but exclusive rights are reserved with company
  • You can’t get ownership of brand names and company name as it is property of Pharma Company.
  • Limited area: You will have to work at only area which is assigns to you. In future if you want to expand and company already have distributor there then you have to search a new company
  • You can't control MRP of products as MRP is decided by company on basis of all distributors common point.

Pharma Marketing Company:

  • Ownership and exclusive rights of company name and brand names
  • Unlimited Area: You can expand at per your wish as you are the owner
  • You can fix MRP as per your requirements.
  • High Investment as you have to purchase as per MOQ
  • Takes time to launch as products will take atleast 35 to 45 days time in manufacturing process
  • Have to work at limited product range. If want to launch new molecule then further requires more investment

Conclusion: With our experience and market survey, we reach at conclusion that starting with marketing company is somewhat difficult as compared to franchise marketing. You should analyse all aspect based upon your current circumstances and decide which is better for you to start with. Professionals are getting good business in both ways and establishing own business.
You can start with Franchise marketing at initial level and once you establish your franchise business, you can move for starting own pharmaceutical marketing company.

Hope above information is helpful to you...



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