Tags |
|
|
Links |
|
|
Digg It - Franchises -- Advantages and Disadvantages
Want to own your own business? Don’t want to start from scratch?
Franchises are a way to get into business quickly, with a brand name, proven methods of operation and a support structure. Franchises are ev
Franchises are a way to get into business quickly, with a brand name, proven methods of operation and a support structure. Franchises are ev
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
erywhere. Familiar names include Dunkin’ Donuts, Curves, Mail Boxes Etc. and McDonalds, to name a few.
"Buying" a franchise is legally complicated. As a franchisee, you pay money for the right to use the f
"Buying" a franchise is legally complicated. As a franchisee, you pay money for the right to use the f
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ranchisor's Trademarks, systems and methods. Many franchises are legitimate and successful. Unfortunately, there has been a history of problems with franchises. As a result, franchising is heavily regulate
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
d at both the state and federal levels.
The legally required franchise documents are intended to provide full disclosure to the prospective purchaser. In reality, the franchise documents are voluminous, ful
The legally required franchise documents are intended to provide full disclosure to the prospective purchaser. In reality, the franchise documents are voluminous, ful
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
l of legalese, extremely one-sided in favor of the franchisor, and packed with restrictions and fees.
Advantages of buying a franchise include:
- Quick startup
- Help with site selection
- Brand name and
Advantages of buying a franchise include:
- Quick startup
- Help with site selection
- Brand name and
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
recognition in the marketplace
- Training and support
- Customized accounting system
- Exclusive territory
- Marketing assistance
- Access to markets and suppliers
Disadvantages of buying a franchise in
- Training and support
- Customized accounting system
- Exclusive territory
- Marketing assistance
- Access to markets and suppliers
Disadvantages of buying a franchise in
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
clude:
- Up-front fees (substantial initial investment required)
- Ongoing fees (usually royalty payment is a percentage of revenues)
- Fees for marketing and related services
- Restrictions on activities
- Up-front fees (substantial initial investment required)
- Ongoing fees (usually royalty payment is a percentage of revenues)
- Fees for marketing and related services
- Restrictions on activities
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
(you can only offer approved franchise products and services)
- Monitoring (the franchisor monitors your books, bank accounts and operations)
- Termination criteria
- Renewal requirements and fees
- Rest
- Monitoring (the franchisor monitors your books, bank accounts and operations)
- Termination criteria
- Renewal requirements and fees
- Rest
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
rictions on transfer
A franchise is a major investment.
It’s important to carefully investigate the opportunity. A common misconception is that franchises are really “turnkey” operations. Purchasers think
A franchise is a major investment.
It’s important to carefully investigate the opportunity. A common misconception is that franchises are really “turnkey” operations. Purchasers think
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
that they just “buy” the franchise and it runs itself. This is incorrect. It’s important to clearly understand what you are buying, how hard you will have to work and what income is realistic.
Here are som
Here are som
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
e tips to evaluate a franchise opportunity:
1. Check to see if there are lawsuits against the franchisor. Litigation is required to be disclosed in the franchise documents.
This will give you important inf
1. Check to see if there are lawsuits against the franchisor. Litigation is required to be disclosed in the franchise documents.
This will give you important inf
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
ormation about what’s gone wrong for others.
2. Talk to/visit existing franchise owners.
There should be a list of existing franchise owners in the franchise documents.
You can stop by and visit as a custo
2. Talk to/visit existing franchise owners.
There should be a list of existing franchise owners in the franchise documents.
You can stop by and visit as a custo
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
mer, and observe their operations.
You can also call up and ask questions, such as:
- Are you satisfied?
- Did you receive the support promised?
- Were there any surprises?
- Have there been any problems
You can also call up and ask questions, such as:
- Are you satisfied?
- Did you receive the support promised?
- Were there any surprises?
- Have there been any problems
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
?
- How were the problems resolved?
- Are you making the money you expected?
- Can I visit and observe your operations?
3. What are the fees?
Franchise terms vary. It’s important to understand the fees.
- How were the problems resolved?
- Are you making the money you expected?
- Can I visit and observe your operations?
3. What are the fees?
Franchise terms vary. It’s important to understand the fees.
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
Make a list of fees:
- What’s included with the initial franchise fee?
- What’s the royalty? Is it a percent of “gross” or “net” sales?
- Is the royalty a fixed percentage or does it decline over time?
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
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
- Are there service fees? Training fees? Marketing fees? Advertising fees?
4. What’s your territory?
Draw a map with clear boundaries:
- What is your defined geographic territory?
- How close can anot
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
her franchise like yours be located relative to your location?
5. What’s your competitive advantage?
- What sets this franchise apart?
- Does the franchise include key technology or methods?
- Can it be e
5. What’s your competitive advantage?
- What sets this franchise apart?
- Does the franchise include key technology or methods?
- Can it be e
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
asily copied?
6. What are the restrictions?
- Are you limited as to what you can sell?
- Are you required to buy from specific suppliers?
- What are the reasons for termination?
- What is the scope/term
6. What are the restrictions?
- Are you limited as to what you can sell?
- Are you required to buy from specific suppliers?
- What are the reasons for termination?
- What is the scope/term
.
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
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
of the non-compete?
- What are the requirements for renewal?
- Can you transfer ownership?
In conclusion, buying a franchise may or may not be a good choice for you. Before signing a franchise agreement,
- What are the requirements for renewal?
- Can you transfer ownership?
In conclusion, buying a franchise may or may not be a good choice for you. Before signing a franchise agreement,
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
check it out carefully and make sure you understand what the documents say. The advice of a business attorney knowledgeable about franchises can help you understand the legalese and make an informed decision
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggit.org.ua/article/42969/diggit-Franchises--Advantages-and-Disadvantages.html">Franchises -- Advantages and Disadvantages</a>
BB link (for phorums):
[url=http://www.diggit.org.ua/article/42969/diggit-Franchises--Advantages-and-Disadvantages.html]Franchises -- Advantages and Disadvantages[/url]
Related Articles:
How to Decide Which Job Offer is Right For You
Executive Suites - A Way To Save Cash
Open a Dollar Store - Your Store Must Always be Fully Stocked!
Bookmark it:
|