Advice You - Business

Franchising involves an almost symbiotic relationship between the franchisee and the franchisor. The franchisee provides expansion, additional profit and

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

increased brand recognition while the franchisor provides the basic know how, brand name, supply chain, and continuing support for the franchisee. To pay

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

Examples of combination products may in

or this instant business, the franchisee shells out an up front fee or a franchise fee for the use of the business system and the brand name. Moreover, th

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

e franchisee has to pay a monthly or yearly percentage of the gross sales to the franchisor. Recouping the investment may indeed take some time but franch

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

se companies will provide you an estimate roi or return of investments to give you an idea on this.

For this reason, franchising has become one of the mos

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

Combination pro

profitable and strongest business systems in the world today and though franchises represents about only a tenth of the total number of businesses, franch

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

ises garners almost a third of the market share.

There are many types of franchise agreements. These different types differ only on the amount of partici

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

ation a franchisee can have in making business decisions, advertising and marketing. Some forms of franchising such as those in the food industry strictly

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

regulates how the business is run while other types gives a fair amount of space to franchisees to run their businesses as they see fit.

As they say, 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

chising can be considered the business in a box selling. Franchisees get to buy a business that already has all the components needed to make it a success

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

The operations manual for example includes all the forms that will be used in the operation, how much to pay and when to pay your employees, how to marke

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

Following aspects would a

the product or service within the first few months, policies and procedures, compensation packages, product and service information and just about everyth

dd to the challenges in developing combination products:

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

ing to the most minute detail needed to run the business. Prospect franchisees and their people also have to undergo several months of training and drilli

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

g to prepare them in handling the store. This results in a uniform and consistent service that gives customers the confidence of knowing what to expect.

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

o if you are thinking on going into this business, how do you start? It is generally suggested that a franchisee should have at least a basic knowledge an

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

d interest in the business he will be going into because although he or she can hire someone competent to handle the store, the franchisor’s time will alwa

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

Professional from academic institutions, pharmaceutical industries, health care indust

s be needed especially on the start up months.

You also have to learn how to evaluate the strength of a franchise offer. Are the upfront fee and monthly

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

oyalties well worth the cost of the brand name, the support system and the business system given to you? Talking to other franchisees in the system might

.

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

help you get a general idea on this. Asking them of the amount of support they get from the franchisor, the amount of business the brand name generates an

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

Companies that provide selfless information through particip

the effectiveness of the business system to deal with day to day as well as long term hurdles will give you a clearer picture if the franchise is worth it

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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