There is hardly any pharmacy which is not embraced by the franchise system. And even those, which are brave and courageous to run an independent ventures are slowly swallowed by the pharmacy franchise monster. Pharmacy is one of the few industries, which are perfect for the franchise model. People come to the pharmacists with the same level of trust as they come to the general practitioner. Therefore, the brand, corporate image and the professional methodology are key aspects of the successful pharmacy. The pharmacy franchise is the ideal (but also expensive) concept which can deliver those customers expectations.
Essentially, there are two pharmacy franchise giants: Terry White Chemist Franchise and Priceline Pharmacy.
There are smaller operators but, unless there is little competition, they will have a tough time to beat those two mega players.
Pharmacy franchises have a massive advertising power.
In the past, the marketing was confined to the newspapers, radio and direct mail. Today, even television becomes a common advertising method for the pharmacy franchise. The profit margins are so high that hardly any chemist can compete with these businesses.
The pharmacy franchise has a benefit of the following:
However, the successful business model does come with the price.
Both, Terry White and Priceline Pharmacy outlets require close to $1 million in investments.
Most pharmacy shops will also need a huge working capital.
Stock, chemicals and salaries will further deflate the budget.
Therefore, apart from the contract conditions you should investigate the location of the franchise. The prime locations next to large residential areas are the best choices for your pharmacy franchise. Do not be afraid of the green (new and untested) sites. If you are surrounded by the large scale residential housing then you have the strongest potential to succeed.
It is impossible to imagine a graduate pharmacist with $1-2 million ready to invest.
It is also very unlikely that banks will lend the poor bloke that amount either.
However, there is a business trick by which you can be embraced by the pharmacy franchise.
Both Terry White and the Priceline have a huge appetite for the existing pharmacies. Thus, you can open or purchase an independent operation. After year or two you can apply to have your pharmacy rebranded into one of those major franchises. This business strategy is not simple but can cost as little as 50% of the direct pharmacy franchise purchase price.