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View the frequently asked questions to answer your queries.
For other concerns, you may contact our Leads Management Specialists at (02)8281818 loc. 131.

 

FRANCHISE PACKAGE AND INVESTMENT

 

1. How much is the investment cost to put up a Generika Drugstore? 

Generika Drugstore’s standard franchise package is approximately P900K – P1.7M and includes: 

The franchise fee (P210K)

• Computer hardware (3 or 4 PC package) 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

• Design Services Fee

• Security deposit to our commissary (refundable)

• Initial inventory of 300KP to 400KP

• Pharma supplies

• Marketing supplies and sound system

• Operations supplies

• Store Renovation

   Furniture / Fixtures

• Business Permits

• Operating Capital

Responsibilities of the franchise applicant, under the guidance of Generika Drugstore 

• Hiring of store renovation contractor

• Hiring of Staff

• Securing Business Permits

• The security deposits to the lessor for the rental of the store space

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. 

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. How much is the franchise fee itself? 

The franchise fee, payable to the Franchisor, P210K. It is a one-time payment which is good for the entire duration of the franchise (5 years). 

The Franchisee Fee grants the Franchisee the right to use the Generika Drugstore trademark and to be taught the Generika Drugstore 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 Generika Drugstore. 

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. 

3. How long is the franchise contract? 

The franchise contract is good for five years and can be renewed. For renewal of the franchise contract, you will be charged 30% of the prevailing franchise fee. This renewal is valid for another five (5) years. 

4. Can I sell my franchise? 

You must inform Generika of your intention to sell. Generika will have to evaluate the interested party and make sure that he/she is qualified to take over the existing franchise. 

 

FRANCHISE LOCATIONS/SITE ASSESSMENT

 

1. What areas are open for franchise? 

 

Generika Drugstore is open for franchise nationwide (Luzon, Visayas, Mindanao). 

2. Does Generika Drugstore provide franchisees with locations? 

In most cases, Generika Drugstore does not, as good sites are difficult to get and are quickly taken. Generika suggests that you look for a site yourself to be able to get a franchise sooner. 

3. What are the franchisee’s responsibilities regarding site assessment? 

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. Generika Drugstore focuses on the issues related to a location that it believes 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. Generika Drugstore’s reports, comments and recommendations are presented only as an additional reference and help. 

4. How long does it take to process the market study and evaluation of a site? 

If during the ocular inspection Generika Drugstore feels that the site is not feasible, you will be immediately informed. If the site shows positive prospects, the market study will take a few days. 

After the market study, Generika Drugstore conducts a “deliberation meeting” at its head office, during which the site is presented and its strong and weak points are discussed. The franchisee or franchise applicant who will be managing the site – if the 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 Generika Drugstore’s reactions to the market study. 

5. What is the required store size? 

Generika Drugstore requires approximately 20 sqm up to 40 sqm, preferably with at least 3-4 meter frontage. 20 to 40 sqm is usually ideal and will accommodate the customer area, equipment such as three 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 restroom, but it is not an absolute necessity. 

6. What are the store models of Generika Drugstore? 

Generika Drugstore has 1 store model. The Standard Model. The Standard model is used for locations where the market population is above 30,000 and the required store floor space is more than 25sqm.  

7. What are the location requirements? 

Locations should be at the ground floor, located along a main street, preferable 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. Ideal locations are near landmarks, like public markets/commercial areas, jeepney or tricycle terminals. Presence of nearby hospitals or clinics is an advantage but it is not required. 

8. What qualities do we look for a Franchisee? 

A Franchisee must be hands-on, knowledgeable in managing a business, has the capacity to open and operate multiple branches, and must be financially able to sustain a franchise business.