These companies can be understood as an authorization or permission granted by a government or a Pharma company or an organisation possessing the rights, to an individual or a group which qualifies them to carry out commercial activities as an agent to the market, sell or promote that company’s product. Pharmaceutical companies have a large variety of products which they keep on constant developing new products. This type of agreement gives Pharma companies rise in their income apart from the regular income from the product that they are obtaining..
Basic requirements needed before starting a franchise
As with other businesses which sell medicines before a license is given to any company who is starting to sell a drug independently, the government requires them to fill certain requirements so that they know that the franchise knows what they are selling. These requirements include:-
- Legal drug license which is provided by the Central Drug Standard Control Organisation/State Drug Standard Control Organisation.
- A copy of rent agreement your premise if taken on lease or rent or in case one own the building where the franchise will be working from the copy of the blueprint.
- PAN number from the income tax department
- Registration copy of Limited Liability Partnership (LLP) contract with attestation from partners (conditional).
- Central Sales Tax
Outside of these requirements which the person owning the franchise needs to fill with the person/company/retailer/government who is giving them the right a background check is done on the person and any criminal record he/she may have is taken into consideration before the right is granted to them.
The difference with PCD franchise
The main difference between PCD franchise and a pharma franchise company is that PCD works on a smaller unit with less area whereas pharma franchise works on a larger unit with higher investment, the larger area of operations and specific targets. Another big difference is the number of documents one needs to fill before the franchise whereas PCD pharma franchise file very basic documents for the legal rights a pharma franchise has to go through a lot of documentation check before the right is given which acts as an extra level of legality right to them.
Pharma franchise company act as an alternative for people who don’t want to buy the medicines from PCD pharma. The more document involved in the obtaining the right also provides a more legal ground to stand on for selling of the drugs as compared to PCD franchise. Another advantage they have is they work on a larger area with higher investment meaning sending of medicines to other areas is easy and they have more branches from which the product could be sent to the general public.