Generics Franchise Drugstore/Franchise Drugstore Philippines/Generika Drugstore
Generika now operates in 693 locations nationwide!

Detailed Information - FAQ's

Below is a reference of everything that you need to know on how to own a Generika Franchise. Just click on the topics to access the detailed franchise information package. At the bottom of this page, there's an option to download all this information regarding the Generika Drugstore Franchise Package.

 

  1. About the location
  2. Franchise Package and Investment

About the locations

1.1 Areas opened for franchising - site selection

1.1. What areas are opened for Generika Franchise?

Generika is open for franchise nationwide (Luzon, Visayas, Mindanao). We have divided the Philippines in 5 clusters and you may get in touch with the following persons for your inquiries:

North Luzon:

  • Bataan
  • Pampanga
  • La Union
  • Ilocos Sur and Norte
  • Pangasinan
  • Bataan
  • Nueva Ecija
  • Vizcaya, all the way to Aparri


Contact Person: Aissa Pascua - Leads Management Specialist
Email Address: aissaangeli.pascua@generika.com.ph
Contact No.: (+63) 917-8668178

 

North & East GMA:

  • Bulacan
  • Rizal
  • GMA
  • Quezon City
  • San Juan
  • Camanava
  • Pasig
  • Marikina


Contact Person: Aissa Pascua - Leads Management Specialist
Email Address: aissaangeli.pascua@generika.com.ph
Contact No.: (+63) 917-8668178

 

South GMA & Luzon

  • Makati
  • Pasay
  • Pateros
  • Taguig
  • Paranaque
  • Las Pinas
  • Muntinlupa
  • Camanava
  • Mimaro
  • Bicol


Contact Person: Karla Agus
Email Address: karla.agus@generika.com.ph
Contact No.: (+63) 917-5653129

 

Visayas

  • Visayas
  • Palawan


Contact Person: Ruel Salgado - Regional Business Development Manager
Email Address: ruel.salgado@generika.com.ph
Contact No.: (+63) 917-8272039

 

Mindanao

  • Mindanao


Contact Person: Ruel Salgado - Regional Business Development Manager
Email Address: ruel.salgado@generika.com.ph
Contact No.: (+63) 917-8272039

 

1.2 Do you have available locations?

In most cases, we don't, as good sites are difficult to get and are quickly taken. We use brokers, spotters, and even our own employees to look for new locations.

We give 15KP to any person who refers to us a site which we eventually approve. see Referrals

We suggest that the interested applicant also look for sites to be able to get a franchise sooner. 80% of our sites are located by the franchisees themselves. In the case that the Franchisee finds the site, they get a 30KP discount on the Franchisee Fee.

Should you have a good location which you can't hold for long, immediately contact our franchising department so that the site can be subject to a market study. While we conduct the market study, you should also do due diligence to conduct your own study of the site. Remember: finding the right location is key but difficult. The final decision regarding the location is yours.

1.3 Do you do Market Study as Franchisor?

Yes, we pride ourselves in being able to conduct a market study for all locations which are referred to us. Unlike other franchisors, we don't approve sites without first conducting the market study to establish the sales potential of that particular site. This market study is conducted on-site by an employee of Business Development, and not just based on photos or pictures.

1.4 How long do you take to process the market study and evaluation of a site?

If during the ocular inspection we feel that the site is not feasible, we will immediately inform you. If the site shows positive prospects, the market study takes a few days. During this time, we make sure that the lessor is holding the site for us (to be coordinated between Franchisor, Franchisee and lessor), and if necessary, earnest money is given to the lessor.

After the market study, we conduct a "deliberation meeting" at our head office, during which we present the site and discuss its strong and weak points. The franchisee or franchise Applicant who will be managing the site - if their franchise application is successful - is invited to join this meeting so that he or she can give his comments /observations, and also witness first-hand our reactions to the market study.

1.3. What is the Franchisee's or Inquiry's responsibility regarding site assessment?

First, a disclaimer: our market study of a particular location is based on information obtained or provided to us from a number of sources. Remember, people sometimes make mistakes, omit important details, or aren't aware of all the issues that could affect the viability of a store location. Therefore, it is better to investigate, confirm, and make your own evaluation of a site.

Don't rely on our judgment alone. Our report is not meant to be an exhaustive study of all locations in the areas that you prefer. You may have questions or knowledge about relevant matters which we don't cover in our site assessment.

Second, we cannot predict new developments that could dramatically change the value of a location either favorably or unfavorably. For example, a new commercial mall could boost pedestrian count. On the other hand, transfer of jeepney and tricycle terminals elsewhere could cut the number of people passing in front of the store.

It is important that you do your own due diligence, conduct your own investigation about the proposed location, assess its strong points and weak points, and/or explore further possible aspects of a site. We focus on the issues related to a location that we believe are important; however, if there are other things important to you, or other issues that you're aware of, use this report as your guide to determine if this location is right for you.

Finally, you, as Franchisee, are responsible for making the decision on the choice of location, and negotiating the rent and other terms and conditions of the contract. Our report, comments and recommendations are presented only as an additional reference and help.

1.5 What is the required store size?

We require 15 sqm up to 30 sqm, preferably with at least 3-4 meter frontage. 20 to 30 square meters is usually ideal and will accommodate the customer area, equipment such as 3 sets of computers, refrigerator, compounding area, shelves, counters and cashier tables, as well as storage for the stocks. Preferably, the sites should also have a comfort room, but it is not an absolute necessity.

Sometimes the location has strong potential but the available space is too large, e.g. up to 60 sqm. In such cases, we recommend that you don't renovate more space than what is needed (30 sqm usually) to keep the costs down (investment and operating expenses like air conditioning). You can decide if the excess space can be converted foranother purpose, such as an office, a medical clinic, or even sublease it (if the lessor allows).

1.6 What are the other location requirements?

Locations should be ground floor, located along a main street, preferably at a corner intersection, and highly visible outside with no major obstruction to access. There should be dense residential areas nearby, and good pedestrian traffic counts. Ideal locations are near landmarks, like markets/commercial areas, jeep or tricycle terminals- these are located strategically where many people pass. Presence of nearby hospitals or clinics is an advantage but not required.

1.7 Is it good to locate near other leading drugstores?

Our experience shows that proximity to other leading drugstores can work as an advantage, but it is not required.

We can either be located next to other drugstores, including the major chains (this is often an indication that there is a sizeable market for medicines), or we can be located in areas where no major competitors are sighted. In any case, it is the market study that will establish whether the site is feasible for us.

Franchise Package and Investment

2.1 How much is the investment cost to put up a Generika store?

2.1.1 Franchise Package

What we call franchise package refers to what you will pay to us for all the equipment and services which we will provide to you.

Currently, our STANDARD franchise package is approximately P900K-P1.2M. It includes:

  • The Franchise fee itself (which ranges from only P100K to P210K)
  • Computer hardware (2 or 3 PC pckage) and OS licenses
  • Retail expert, the proprietary POS system of Generika, which helps you manage your sales transactions, inventories and facilitate customer service and is regularly loaded with new features and modules
  • Security deposit to our commissary (refundable)
  • Initial inventory of 300KP to 400KP
  • Pharma supplies
  • Marketing supplies and sound system
  • Operations supplies

 Regarding the payment terms for the inventory with deferred payment, refer to the question later in this manual.

Note that the cost of our Franchise package can be significantly reduced depending on how the franchise location eyed is classified - if it falls under "MINI" or STANDARD, the cost of the Franchise Package is significantly reduced. More is explained about this later in this document.

2.1.2 Other items to be financed by the Franchisee

Not included are:
1) the cost of the store renovation itself, including the shelves and counters (we will give you detailed specs);
2) the security deposits to the lessor for the rental of the store space.
3) The cost of the permits to be secured before opening the store.
4) The operating capital.

Estimated expenses are shown below:

ESTIMATED EXPENSES/OUTLAYS
Range of possible expense
Minimum to Maximum

Store renovation = P 200,000.00 to P 300,000.00
Air-conditioning system and Refrigerator = P 60,000.00 to P 80,000.00
Advance rent and deposit for Leased space = P 50,000.00 to P 80,000.00
CCTV with audio = P 20,000.00
Working capital = P 100,000.00 to P 200,000.00
Contingency = P 100,000.00
TOTAL ESTIMATED EXPENSES/OUTLAYS = P 530,000.00 to P 780,000.00

NOTE: Total Investment for a Generika outlet in a particular location will vary based on the size and condition of the store, equipment required, prevailing rates for rent, amount of advance rent and deposit, and the need for working capital and contingencies. Below is a range of the other expenses/outlays that you can expect over and above the franchise package itself that is payable to the Franchisor.

The Franchisee must be cautious during site selection and store preparation in order to minimize the cost of renovation, other capital expenditures and expenses that would increase the total investment.

Please take note that many items are pro forma estimates, e.g., prices of computers, construction costs, etc., are subject to change. The costs may also vary from one region to another. Moreover, figures could move up or down depending on the specific conditions of each location as well as the wishes of the franchisee, e.g., who might take a much bigger space to accommodate a medical clinic or office.

2.1.3 Total Investment cost

All in all, you usually have to prepare about P1M to P1.4M to cover the entire funding requirement for a franchise including working capital and a reserve for contingencies. We believe it is more prudent to have adequate funding reserves than to prepare only the bare minimum and risk running out of money if projections do not turn out as expected.

However, there are ways to bring down further the cost, especially if your outlet falls under a MINI or a STANDARD concept.

2.2 How much is the franchise fee itself?

The Franchisee Fee, payable to the Franchisor, is as follow:

P100K-P210K

It is a one-time payment which is good for the entire duration of the franchise (5 years).

For franchisee(s) who get a second outlet or succeeding outlet, the Franchisee fee is lowered by 50KP.

The Franchisee Fee grants the you the Franchisee the right to use the Generika trademark and to be taught the Generika system. Part of the franchise fee paid is used for market study done by the Franchisor to validate the prospect site, and for other research deemed necessary by us.

Generally, the franchise fee entitles the Franchisee to a wide array of services: assistance in hiring and screening of the store personnel, 13 day comprehensive training of your store personnel, store design assistance and monitoring of your renovation, counselling on the processing of permits, etc. In short, we will guide you to help you start and operate your store smoothly.

2.3 What is included in the Franchise Package?

Basically, we guide you to prepare the launch of your store and we teach you how to manage it.

We offer comprehensive support, unlike many franchisors. Our support of our franchisors distinguishes us from other franchises in the industry. We were awarded in July 2009 as "Best in Franchise Support" by Entrepreneur Magazine.

In 2011, Generika was awarded as " 2011 Most Promising Filipino Franchise" by the Department of Trade and Industry (DTI) in association with the Philippine Franchise Association.

Our support includes:

  • The right to use the Generika trademark and logo
  • Location and market study assistance:
    because location is a major factor of success, we take extra steps to validate the target site's sales potential. We conduct a market study on site. We organize free traffic counts for you. We also suggest sites which we have already evaluated. The results of the market study are presented / discussed in detail with you so that we have a consensus on the evaluation of the site.
  • Architectural / store design and construction assistance:
    We provide you guidelines on our design and layout requirements, so that you can maximize your existing space. You are free to choose your own contractor provided that our design specifications are followed. Monitoring the renovation is your responsibility but we help you.
  • Start-up and pre-opening assistance:
    Our Business Development Admin Group guides you during the necessary steps to prepare the opening of your store. It coordinates accordingly with the various departments at our head office that interact with you. Target is to open the site about six to eight weeks after the signing of the franchise agreement.
  • HR support:
    For the recruitment of store personnel including exams, interviews and recommendation of personnel.
  • Extensive training on pharmacy retailing and management, computerized operation and customer service; additional trainings for the store supervisor and franchisee:
    When conducted in our head office, such trainings use our training facility, with capacity for 200 people, 20 computer stations which can be used to simulate the store operations and a mock up store used during training to practice selling. For far away stores, we send Trainers and the trainings are conducted on site.
  • Two to three computers per store:
    Complete with the necessary printers and other peripherals and installed with Retail Expert, our exclusive Point-of-Sale (POS) system to manage sales transactions, inventories and facilitate customer service.
  • TAll necessary pharmaceutical and operations supplies.
  • The initial inventory - amounting to about P300K

Our support doesn't end once you have opened your store. Unlike other franchisors, we have an Operations Team (composed of Franchise Operations Supervisors and Franchise Operations Analysts) covering the entire country and whose sole function is to monitor and help the stores assigned to them. We also have compliance inspectors who visit stores regularly to check their compliance to our standards.

Our Operations Team assists you during the soft and grand opening of your store, and into day to day operations. They will also assist you during certain promotion activities.

2.4 Are there ways to reduce the overall investment amount?

Yes! If the site which you plan to open for franchise is deemed by the Franchisor eligible to qualify as "SMALL TOWN PACKAGE", then you are eligible to significant reductions in the overall cost of the package :

  • The Franchisee Fee, in such case, is reduced to 50KP only
  • Retail Expert POS cost is lowered to 50KP

 

Your investment is therefore reduced.

Small Town Packages are usually granted for municipalities with limited population, usually 50KP or below. However, whether a store qualifies as SMALL TOWN remains the sole decision of the Franchisor and depends on various considerations such as population (number and density near the site), foot traffic, estimated market potential based on the income levels, competition, and other relevant factors.

Another way to reduce the overall investment amount is if you operate an existing drugstore and convert it to Generika - you fall under the DRUGSTORE CONVERSION PACKAGE.

  • The Franchisee Fee, in such case, is reduced to 100KP only
  • Retail Expert POS cost remains at 80KP

 

However, for Drugstore Conversions, we expect significant savings on your part for store renovation (although you must generally conform to the Generika design), working capital, etc.), since your drugstore is already fully operational. However, please expect that your staff and POS must still be trained and follow the existing Generika system.

2.5 Can the overall investment be reduced if I put up a store near my existing store?

Yes! Here are to options:

Satellite

A "satellite" is a Generika drugstore established by a Franchisee who already operates a Generika outlet in the near vicinity of the location where he wants to establish a "satellite".

A "satellite" is a Generika drugstore established by a Franchisee who already operates a Generika outlet in the near vicinity of the location where he wants to establish a "satellite".

The "satellite" helps to increase market penetration and pre-empt competition. We alsowant to minimize the issue of undue sales cannibalization if the additional outlet were given to another franchisee.

A franchisee may have one or more satellite outlets near his/her Standard or Main outlet.

Whether a store qualifies as "satellite" is decided by the Franchisor. For a satellite, the Franchisee Fee is reduced to 50KP only

Twin store

A Twin store is also a satellite, in the sense that it is an additional store put up by a Franchisee who has already a nearby store in the area. The Twin store applies when the new store is only within a 300 meter radius from the existing store, meaning very near the existing store.

In this case, in addition to the Franchise Fee reduced to 50KP only, there are additional benefits - Retail Expert is reduced to 50KP only and the security deposit payable to franchisor is reduced to 70KP

The concept of "satellite" and "twin", however, only apply to existing Franchisees who want to put up additional branches.

2.6 How do I repay the 200KP of initial stocks provided by the Franchisor?

The 200KP inventory with deferred payment will be repaid without interest by the Franchise store once sales hit 12.5KP generic sales (VAT Inclusive) for a given month, or after the store hits 6 months of operations, whichever comes first. Beginning with all contract signings after July 1, 2012, repayment starts after only 4 month of operations.

Repayment is 8,000.00 Php per week for 25 weeks, which is billed as a debit memo in the SOA issued by Actimed Distribution.

Together with this consignment system, the franchise store must not carry less than 200KP worth of inventory, and to maintain at least 150KP of generic medicines (at least until the consigned inventory has been paid in full as provided herein).

More details will be found in the copy of the Agreement that you will receive later if you proceed.

2.7 Are there possible discounts on the Franchisee Fee?

Yes, we have two kinds of discounts on the Franchisee Fee:

  • FINDER'S FEE:
    A discount of 30,000.00 Pesos will be applied if the Franchisee found the location himself/herself and will operate it. We call this the "finder's fee". In this case, the Franchisee pays less 30KP on the Franchisee Fee (except if the new store is a satellite, twin store or a drugstore conversion in which case the finder's fee is not applicable anymore since the Franchise Fee is already very low at 50KP - see above).
  • ADDITIONAL STANDARD STORES:
    A discount of 50,000.00 Pesos is given to existing franchisees who want to get additional "standard" stores (100,000.00 Pesos franchise fee instead of 150,000.00 Pesos or 50KP instead of 100KP for a drugstore conversion).

 

2.8 What makes Generika's franchise unique?

Generika isthe QUALITY GENERIC DRUGSTORE, compared to small and low-end drugstores carrying only generic medicines. Generika sells generic medicines at very affordable prices, but will not compromise by lowering our operational standards. Generika, from the very beginning, has opted for a quality business model. This is why all our stores are air-conditioned, our operations are computerized, and we offer very professional customer service.

In Generika's store concept:

  • We carry the largest range of generic medicines, in line with our vision and mission to offer quality and affordable generic medicines to as many communities as possible.Because all our purchasing is centralized, and because all generic medicines carried are FDA approved and have also passed the screening of our Corporate Pharma Department, we are able to maintain the quality of the items which we sell across our network of branches.
  • Besides medicines, we carry selected branded medicines and selected consumer goods such as infant powdered milk, distilled water and diapers. This is to offer more items for sale to our customers.
  • Our operations are fully computerized. We operate with state-of-the-art technology: we have designed our own point of sale system and we constantly improve it. All stores are linked to our central head office and warehouse. Because of this, we require 2 to 3 computers per store and related peripherals as part of our regular franchise package.

    This POS is a major competitive advantage of Generika, and gives the franchise invaluable information about its sales and operating profit performance, inventory status, and even items and quantities to be replenished. It makes the store much easier to operate and allows much better controls.

    It also allows us to take advantage of technology. Recently, for example, Generika has started selling electronic cell phone load using our POS. It is already operational for Globe and will soon be launched for SMART and SUN. This service is provided directly from our POS. In line with our commitment to better service, we are using technology to provide a better customer experience. Our cell phone loading via POS is faster and more reliable than traditional loading since it has leaves a clear audit trail, an official receipt, and a tracking number.
  • Our stores are air-conditioned to preserve the efficacy of the medicines, and for the comfort of our customers. Medicines are vulnerable to high temperatures, and we do not want to risk deterioration of their quality. Many scientific studies have shown that extended exposure to heat and humidity may affect the potency of medicines. The Philippines being a tropical country, it is important that medicines are stored properly.Most medicines are recommended to be stored below 30 degrees, some even below 25 degrees.
  • We offer superior customer service. We train our personnel and provide refresher trainings. We also offer a loyalty card, Generikard, that rewards customer loyalty and offers more advantages to its members.

 

2.9 How long is the franchise contract?

The franchise contract is good for 5 years. It can be renewed. Generika's franchisees are its long-term business partners and investors. With other franchisors operating in various industries, occasionally after the franchise period, the Franchisor tries to reacquire the good sites and operate them. This is not our business philosophy. We want our Franchisees to continue operating long-term, as long as they comply with our standards and have shown their capacity to manage the store well.

For renewal of the franchise contract, we will charge 30% of the prevailing franchise fee. This renewal is valid for another five (5) years.

2.10 Can I sell my franchise?

You must inform Generika of your intention to sell. We have to evaluate the interested party and make sure that he/she is qualified to take over the existing franchisee. While the transaction is essentially between the buyer and the seller, we ensure that the buyer is aware of the current operational and financial performance of the store. In such situations, we share the procedures that apply for such transactions. These procedures must be followed both by the buyer and the seller.


Why invest in a Generika drugstore?

1. You are investing in an industry which represents a basic need of humanity. Health related expenses are going up worldwide, in virtually all countries. This industry, because it represents a daily need of people, is less subject to sudden market changes, effects of fashion and other short term trends, or strong seasonality effects (although there is also a yearly seasonality).

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Our Franchise Package

Generika Franchising Services, Inc. not only looks into the investor but works hand-in-hand with him to ensure that his business is viable. We are not looking into rapid expansion, but successful business ventures that would give the investor success and satisfaction.

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Ongoing monitoring & support

As our franchisee, you can expect continuous support and assistance from us to help you manage and expand your business.

Our support includes:

  • Screening of all personnel whom you consider for hiring.
  • Free training of all store personnel (opening team and succeeding hirees) at our head office...

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Detailed Information - FAQ's

Below is a reference of everything that you need to know on how to own a Generika Franchise. Just click on the topics to access the detailed franchise information package. At the bottom of this page, there's an option to download all this information regarding the Generika Drugstore Franchise Package.

Read more

Franchise Awards

Generika Drugstore, despite its young age, is already a multi-awarded drugstore chain!. We have received several prestigious awards from various organizations. We feel very proud that our efforts for excellence in customer service and compliance to all pharmaceutical laws are being recognized more and more. As we continue to operate and expand our outreach, expect Generika to be given further recognition.

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Testimonials

Our franchisers are talented people who have found personal and financial success by opening their own Generika branches. Read some of their stories.

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Find Out More

Interested parties, please contact:

Business Development Department
Telephone: 828-1818 local 131 or 161
Mobile: Head Office - 0917-5653129, 0917-8668178 | Luzon Cluster - 0917-5653129, 0917-8668178 | Visayas Cluster - 0917-8272039 | Mindanao Cluster - 0917-8272039

Email: franchising@generika.com.ph

DOWNLOAD OUR FRANCHISE BROCHURES


Referral Program

Generika Drugstore is offering YOU an opportunity to earn additional income through its Store Location and Franchisee Referral Program. This is open to all, whether employees or non-employees of the company. Refer a Franchisor or store location, and you can earn up to P15,000

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Target Areas for New Stores

Be part of a fast-growing business by owning a Generika Drugstore franchise! We are looking for franchisees who would want to open their Generika Drugstore branch in the following areas: