Pharmacy chains have been growing by leaps and bounds lately. You don’t have to live in a metropolis - even in provincial towns, it’s enough to walk down the street for 5-10 minutes to stumble upon some kind of pharmacy or optical store.
Obviously, this area is quite attractive for the retail business.
And the main factors make it highly profitable and profitable:
- Mental.
Russia is not particularly strong in disease prevention. We begin treatment when “thunder strikes.” That is why there are many chronic diseases. This means that a large consumer market for pharmacy chain services is emerging.
- Practice self-medication.
Everyone can teach and treat in Russia. We prescribe treatment for ourselves, we “prescribe” medications ourselves, we ourselves buy unlimited quantities of medications.
- Low government control over pricing.
The more common the drug, the higher the markup. But in practice it can reach 300%.
So it turns out: there are more and more patients, there is less and less trust in official medicine, and against this background, the prospects for opening your own point are quite bright.
Now the question is different - how to open a pharmacy?
Prospects for opening a pharmacy franchise
Buyers of pharmacy franchises receive a market advantage in the form of a well-promoted brand and advertising support from the franchisor. In addition, this type of concession makes it possible to:
- use the room selection service;
- obtain commercial and pharmaceutical equipment;
- purchase medications at a discount;
- issue permits within 5-7 working days;
- set up a warehouse accounting system for free;
- train staff;
- use legal and marketing support.
Franchise buyers receive commercial and pharmaceutical equipment.
Depending on the amount of the contribution, the legal entity receives a number of benefits and preferences, and also enters a highly competitive market under the protection of the trademark with which it enters into cooperation.
Pharmacy 120/80
Type of business: pharmacy franchise Amount of investment: from $20,000 Franchisor's office: Moscow, Russia Availability of recommendations from franchise store experts: yes Note: medical pharmacies of the future A typical problem of a modern person is lack of time and reluctance to go to the doctors on time to check their health. Therefore, only qualified specialists work at the 120 to 80 pharmacy; based on your symptoms, they will determine what remedy you need, and if necessary, provide first aid. Free consultations on medications and diseases are also offered.
Features of this franchise:
- Payback from 6 months.
- A very profitable type of business.
- This is a unique pharmacy
- A sustainable type of business. Everyone always needs health. People who start taking care of their health do so throughout their lives.
- Training.
- Consultations and support for your business.
- Reduced costs for setting up a business. Diagnostics are carried out in Moscow, there is no need to install expensive equipment
e-tiketka.ru
Types of franchises
There are several types of retail franchises on the market:
- Classic involves strict adherence to the rules established by the franchisor. This applies to the design of the premises, pricing policy, and level of customer service. Cooperation requires a monthly deduction of a percentage of turnover to the seller, as well as the provision of financial reports. This franchise is suitable for beginners who are not familiar with trading and may incur losses. Control from the central office helps to understand the nuances of the pharmacy and set up a business from scratch.
- “Free” is determined by minimal attention from the franchisor. The entrepreneur himself sets the price of the goods, methods of displaying them, independently resolves current economic issues and chooses his suppliers. He works under the brand of the organizing company and receives goods at a discount without deferred payment. This is a type of partnership within one brand.
- “Golden” gives the right to resell the brand under the control of the organizing company. In Russia, the right to conduct business under European trademarks is often resold. With the help of the “golden” franchise, companies are expanding in the CIS countries.
Trade in pharmaceuticals and medical products most often uses the first 2 options.
"Soviet Pharmacy"
The Sovetskaya format involves the launch of an object with an area of up to 45 m². Discount stores are located in residential areas and near public transport stops. They operate in the lower price segment and trade with a markup of up to 25%. The range of goods exceeds 50,000 items in daily demand.
"Soviet Pharmacy" is a federal pharmacy chain.
The purchase pays off due to fast turnover and high traffic.
To obtain the right to trade under , you need to have a starting capital of about 1,400,000 rubles.
The franchisor assures that if the location of the pharmacy is chosen correctly, its traffic will be about 500 people per day, and the investment will pay off in just 9 months.
"Evalar"
"Evalar" is a retail chain in Russia that has 165 branches in different cities. The first pharmacies of this brand opened in Moscow back in 1995.
The brand sells a classic franchise, which requires control by the organizer, strict adherence to the approved marketing process and sales plan. Special conditions include the requirement for the premises: its area must exceed 45 m² and it must be located in an area with active traffic.
Evalar is the largest company producing and selling dietary supplements.
The minimum investment in a business is set at 80,000 rubles. Monthly payments to the franchisor will be 0.1% of sales, lump sum contribution - 5,000 rubles, limit revenue - 130,000 rubles per month.
"Rigla"
"Rigla" is a network of 1,900 pharmacy points, which are most often located in supermarkets, train stations and business centers with a traffic volume of 300 people per day. A special feature of the point’s operation is the presence in the product range, in addition to pharmacy, of an assortment of baby food, hygiene products and medicinal cosmetics.
Rigla is a national pharmacy chain.
The organizer guarantees the launch of the business within 3-4 months from the date of application and offers the preparation of all permits, including a license. The lump-sum payment for purchasing the “At Home” franchise is 100,000 rubles, the “Be Healthy” package is 500,000 rubles, and “Rigla Standard” will require an initial capital of 2,000,000 rubles.
There are no royalties. The estimated payback period is 18 months.
Eapteka ru
"EAPteka" is focused on selling medicines via the Internet. It is distinguished by low prices and well-organized logistics. The company has a website and mobile application for online applications. There are points for dispensing pre-ordered drugs in all major cities of the country. 105 out of 700 points are franchises. The company has 105 full-fledged pharmacies that serve more than 700,000 visitors daily.
“Eapteka ru” is the first service in Russia for ordering and delivering medicines.
The fee for the first object will be 150,000 ₽. If the partnership suits both parties, the buyer can count on a discount when opening the next outlet. TM promises a profitability of 100,000 rubles with a monthly turnover of 3,500,000 rubles.
120/80
The pharmacy network was created by professional pharmacists, and therefore the commercial concession allows you to receive advice from leading pharmaceutical companies. The organizer requires franchisees to undergo annual training for pharmacists and carefully monitors the product range.
The lower investment limit is determined at 700,000 rubles. The one-time payment for the right to use a trademark is 15,000 ₽, royalty is 2% of gross revenue.
120/80 is a pharmacy in the pharmaceutical industry market.
The buyer receives marketing and legal support when launching a pharmacy. It is possible to purchase medications with deferred payment.
PHARMA Distribution Group
The PHARMA Group franchise is one of the most expensive on the market. It requires an investment of 2,500,000 rubles. But at the same time, it provides competitive advantages in terms of product range and pricing policy, because the company is the official distributor of foreign pharmaceutical companies. In addition to the network of its own pharmacies, it cooperates with 12,000 retail outlets in the country.
PHARMA Distribution Group is a pharmaceutical company.
A partnership with a franchisor does not provide for an entrance fee or royalties, but provides the opportunity to purchase medicines from one supplier.
PHARMA Group requires franchisors to strictly adhere to corporate style, the availability of working capital and a facility with an area of at least 60 m².
"Pharmacy No. 1"
Federal network, which has representative offices in all cities of Russia.
The offer includes 3 options:
- "Cooperation". Price - 49,000 ₽. The buyer receives a design project for the premises, made in the corporate style, and assistance in obtaining a license to trade in medicines. Pharmacy employees can undergo training at the chain's retail outlets. However, the pricing policy and list of suppliers are not regulated by the organizer.
- "Light." Provides the opportunity to work under the “Pharmacy No. 1” brand and provides software that connects network objects. The package price includes training for employees and advertising support from the seller. Cost - 99,000 ₽.
- "Full". A buyer who pays 500,000 rubles receives advice on product items, market analysis, and the opportunity to purchase medicines for sale. In addition, the fee includes branded equipment and documents for obtaining a license. Franchisees have access to bonus cards and free software maintenance.
“Pharmacy No. 1” is one of the largest national retail pharmacies.
The financial model is suitable for pharmacies with an area of 25 to 85 m² with a traffic volume of 200 people per day. The planned payback is 5-12 months.
36,6
It has an extensive network of 1,800 pharmacies. A franchise gives the right to open several retail outlets subject to a contribution of $1,000 for each facility in metropolitan areas. In the provinces, the one-time payment may be reduced or absent if the brand is not represented in the city.
36.6 - Russian pharmacy chain.
The contract with the buyer is concluded according to a flexible system: payments, royalties, reimbursement of advertising costs and the list of supplier-distributors depend on how interesting the region is for the organizer’s expansion.
"Gorzdrav"
An all-Russian pharmacy brand, which has its own production, offers cooperation to open social pharmacies at low prices. The company has a website for remote orders and guarantees federal advertising support. The franchisee receives a ready-made business development plan and becomes a participant in the loyalty program.
Gorzdrav is a pharmacy with an affordable pricing policy.
Lump sum fee - 150,000 ₽, royalty is set individually. Necessary investments - 1,500,000 rubles. The minimum room area is 70 m².
Rural pharmacy
The Rural franchise is purchased to start a business in small towns and cities. It requires a minimum start-up capital and does not limit the buyer in terms of pharmacy space. Having 400,000 ₽, you can submit an application and start trading under the patronage of the brand. The organizer does not require a lump sum fee or monthly deductions.
“Rural Pharmacy” - pharmacies in small towns and cities.
"Cleverfarm"
The brand’s franchise offer is characterized by strict control over the following conditions:
- range of drugs;
- markup;
- display of goods on display;
- uninterrupted delivery of drugs;
- qualifications of pharmacists.
Cleverpharm is a chain of pharmacies that provide an integrated approach to health issues.
The organizer's managers require compliance with corporate rules and visit the point several times a week. Depending on the format of the pharmacy, the franchise price ranges from 1,300,000 to 2,500,000 rubles.
Which one is more profitable to open?
All of the pharmacy franchises presented are operating successfully and are opening new offices. However, for a novice entrepreneur it is better to opt for either “Soviet Pharmacy” or “Evalar”. These network companies have a low threshold for entering the business (from 1 to 1.5 million rubles) and do not have royalties, which makes franchisees freer in monthly payments. Like their competitors, Sovetskaya Pharmacy and Evalar help the franchise buyer at all stages of development, allow them to purchase goods at wholesale prices, and return expired medications. "Evalar" is more familiar to buyers because it has been around for more than 20 years. “Soviet Pharmacy” is developing rapidly, just starting to open franchise pharmacies, has its own software and a pharmaceutical company as its founders.
The pharmacy market in Russia is oversaturated, so attempts to open a new enterprise are unlikely to lead to success. An alternative to entering this business is a franchise, which allows you to work under a well-known pharmacy brand. In this case, there will be no need for deep knowledge of the niche (research done by the franchisor), advertising costs (chains regularly launch federal advertising campaigns) and debugging of medicine supply channels. Despite the fact that pharmacies have a low markup (by law no more than 30 percent), demand allows the entrepreneur to make good money.
Criterias of choice
When choosing a seller, you need to consider the following factors:
- the amount of starting investments;
- object area;
- possible trade turnover;
- availability of own logistics;
- minimum order amount;
- expected patency;
- markup set by the organizer;
- package of accompanying services;
- customer reviews.
When choosing a seller, turnover is taken into account.
It is also important to have advertising support. This clause must be enshrined in the contract.
Advantages and disadvantages
The advantages of franchising include:
- minimizing risks when starting a business from scratch;
- no problems with suppliers;
- the opportunity to work under a well-known brand;
- ready-made marketing research;
- advertising support from the organizer.
But the partnership also involves some restrictions:
- inability to change supplier;
- a ban on opening a retail outlet of the same type on the territory of the franchisor;
- the organizer's right to terminate the contract unilaterally.
The advantages of franchising include support from the organizer.
Any franchise requires financial investment. The seller helps to obtain a bank loan if the buyer does not have enough money, but the entrepreneur assumes all risks.
Pros and cons of a franchise in the pharmacy business
Purchasing a franchise allows aspiring businessmen to get help in starting a business. As a rule, the owners of trademark rights help to prepare all the necessary documents, select real estate or personnel . After paying the entry fee and preparing all permits, the entrepreneur receives a ready-made outlet that is guaranteed to make a profit.
You need to understand that most consumers strive to use products from well-known brands. Another advantage of this business option is the receipt of ready-made logistics and contacts with reliable suppliers. Some entrepreneurs representing economically profitable regions can become members of a well-known trademark without investing in acquiring rights to use the brand.
It is important to note that this option of cooperation has a number of negative factors. First of all, it is necessary to note the fact that many parent companies put forward strict requirements for the outlet itself. A businessman working in this format cannot independently change the product line or introduce additional services. In some cases, this approach has a negative impact on business profitability.
Working conditions and risks
Working under someone else's brand requires a ready-made business plan, an approved nomenclature and a list of required suppliers. If the contract is not signed on the basis of free cooperation, then following corporate rules is a mandatory condition of work.
The franchisor requires compliance with the plan, and entrepreneurs can receive wholesale discounts if retail volumes do not fall below the agreed level.
Therefore, there is always a risk of losing the right to wholesale prices if, for objective reasons, sales have fallen.
Conditions for obtaining a franchise
To conclude a commercial concession agreement, you must have:
- registered legal entity;
- premises prepared for retail sales;
- availability of working capital (possibly credit).
To conclude a contract, you must have premises.
The premises are repaired and brought into compliance with sanitary standards by the franchise buyer.
Tips and tricks for opening
For newcomers to the retail sale of medicines, it is better to choose the classic franchise option, in which most of the problems that arise are solved by the owner of the trademark. If the owner of an operating pharmacy wants to sign a concession agreement, then he should consider options that involve free cooperation.
Payback periods depend on several factors:
- type of franchise purchased;
- pharmacy retail space;
- royalty amounts;
- cross-country ability;
- personnel qualifications.
Payback periods depend on the traffic flow and qualifications of the personnel.
On average, it varies from six months to 2 years.
As part of the franchise, we work according to the following scheme:
- You confirm Your intention (as an independent economic entity)
- We draw up a “Road Map” for you, according to which we develop a business scheme for you
- We provide comprehensive support at the stages of the business scheme (license, connection of automated control systems, personnel selection, initial purchase - receipt of goods, pricing, placement of goods)
- We develop an assortment matrix for you (according to the parameters of your pharmacy)
- Training staff to use the software
- Connecting the pharmacy (equipment, software, etc.) to all systems and integration into our corporate resource - for conducting analytical control and providing online consultations
- We launch your pharmacy (organization of the complete operating process of a Pharmacy organization)
- We create and connect a package of consulting services for 15,000 rubles/month (10% of the VP)
What difficulties might you encounter?
Before making a purchasing decision, you should talk to existing franchisees. It is better to involve a lawyer in the proofreading of the contract, who can advise on the nuances of its conclusion and make corrections. It often happens that during the cooperation process, hidden mandatory payments and penalties emerge that the buyer did not notice in the contract.
Particular attention should be paid to the point about the possible unilateral severance of relations and the conditions under which this action becomes possible.
"Evalar"
- a well-known manufacturer of medicines in Russia, also provides franchises for opening pharmacies.
Lump sum contribution - 5 thousand rubles + 75 thousand rubles for equipment for displaying goods, royalty - 0.1% of the company's product turnover.
Design of the pharmacy "Evalar"
Evalar is one of the most recognizable brands on the Russian market. Federal advertising plays an important role in this by offering the company's products.
Requirements for franchisees
- Availability of a valid license.
- Monthly turnover - at least 1 million rubles.
Franchise package
- Use of a trademark.
- Consulting and information support.
- Consulting on assortment development and merchandising.
- Training.
- Advertising support.
Attachments
Due to the fact that Evalar sells franchises only to existing pharmacies, investments are minimal. Therefore, it is not correct to compare the investments and return on investment of this franchise with other options.
Full information about the franchise, as well as the application form, can be found on the official website - https://www.evalar.ru/franchise/evalar.
Reviews
Our network of pharmacies has been working with Evalar for several years. There have never been any issues that could not be resolved. The company has an adequate attitude towards business and its conduct. There were times of crisis, but this did not affect cooperation in any way. Their lawyers are competent and committed to complying with all aspects of their activities, which may be why some are not satisfied, because they must work according to the law.
Eugene
https://sdengami.ru/question/otzyvy-o-franshize-evalar
Reviews from existing franchisees
Vladimir, 48 years old, Kursk: “I wanted to buy the Sovetskaya franchise, but I looked at their price list and realized that I couldn’t afford it. I’m not ready to buy branded furniture that is almost 3 times more expensive than store-bought furniture and sell illiquid goods, which is on the list of mandatory purchases.”
Svetlana, 37 years old, Moscow: “I’ve been collaborating with eApteka for three years now. Good support, they help with advice and even recruitment. The income is average, I rent about 45 thousand rubles net. But there is no hassle either. I have already returned the investment. Now the business works for me."
"Gorzdrav"
Gorzdrav has been franchising since 2012, and currently more than 450 pharmacies are open. The lump sum contribution is 150 thousand rubles, the royalty is set individually, but the minimum is 1.5%.
Interior design option for the Gorzdrav pharmacy
One of the main advantages of a franchise is the provision of deferred payment.
Requirements for franchisees
- The minimum room area is 70 square meters. meters, and the room should have several separate rooms.
- The premises must be equipped with equipment approved by the Ministry of Health of the Russian Federation.
- The franchisee must have experience in doing business in the same or similar area.
- Compliance with requirements - sale of products only from the franchisor, a certain schedule and mode of operation, standard design.
Franchise package
- Possibility of using a brand.
- Possibility of purchasing a wide range of products at discounts.
- Consulting on all business issues.
- Providing deferred payment.
- Participation in general advertising campaigns, marketing programs, promotions.
- Unified automated accounting system.
- Assistance at the stage of organizing a business: drawing up a business plan, opening a point, providing a design project.
- Personnel training, seminars, trainings.
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Financial side of the issue
In addition to the lump-sum contribution, a minimum investment of 1.5 million rubles will be required, of which: obtaining a license - state duty of 6.5 thousand rubles; renovation of the premises - 600 thousand rubles; purchase of goods - 400 thousand rubles; signs, signs - 100 thousand rubles; equipment - 400 thousand rubles.
The franchise seller states that payback will be achieved in a year and a half, and the average net profit of a pharmacy with an average level of traffic will be about 130 thousand rubles.
