Advice You - Business

Those prospective entrepreneurs considering buying a franchise are bombarded by statistics which show that Franchisees

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

seem to do much better than stand alone small businesses. However they should approach the statistics with extreme caut

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ion.

The oft-touted statistic that after 5 years the percentage of Franchises still in business is much higher than no

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

n-franchise start-ups is not borne out by anecdotal evidence. So what is the truth? Well much of the apparent discrepan

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

cy can be explained by a simple analysis of the way in which the numbers are sampled.

Staggeringly, the basis for fran

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

hise associations' surveys is polling of CURRENT franchisees only. This means that the very group that the survey is tr

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ying to identify, the franchises that have failed, are excluded from the survey.

The reason for the discrepancy betwee

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

n statistics reported by the franchise industry and independent studies, is difference in methodology. Surveys done by

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

Franchise Associations are done by sending questionnaires only to existing franchisees. Which means that all those fran

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

chisees who couldn't make it work and sold their franchises are excluded from the figures. Only the franchisees who wen

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

bust and couldn't sell their franchises are taken into account.

How very convenient if the objective of the survey is

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

to promote the sale of franchises!

Always be aware of these harsh realities when considering any franchise:

1. Many

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

franchisees never make much money. Average profitability is poor, especially after taking into account the purchase pri

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ce of the franchise. So take the hype used to sell franchises with a big pinch of salt!

2. "Studies" used to sell fran

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

chises are paid for by the franchisors. Don't mistake the information provided for balanced consumer guide information.

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

It's a carefully engineered sales pitch. Getting hold of the information you need to make a rational buying decision is

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

difficult, to say the least. So use your common sense and a healthy dose of cynical discretion.

3. Franchise agreemen

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ts always favour the franchisor. It is very easy to be swept away in the heat of the moment and get into a binding cont

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ract that is not in your best long term interests. And it is very hard to get out of a franchise agreement without taki

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

ng a big financial loss.

4. Remember, the main purpose of franchising is to make the franchisor wealthy. So be careful

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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Whether you call them strategic alliances, joint ventures, or Power Partnerships, they all have the same potential benefits: a more joyful life and exponential business growth.

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