THE DIFFERENCE BETWEEN PHARMA FRANCHISE AND PCD FRANCHISE
In the present scenario, many people think twice before starting independent business ventures instead, they’re looking for franchising their preferred products. Franchise is derived from an Anglo-French word means “Liberty”. While looking at the Pharmaceutical Industry, 2 major types of Franchise Agreements are seen to be prevalent in the market presently. One is the Pharma Franchise Agreement and the other one is PCD Franchise Agreement. Both are having their own benefits and limitations. Both are discussed in the coming paragraphs.
CONCEPT OF PHARMA FRANCHISE
Pharma Franchise can be understood as an authorization or permission granted by a government or a Pharma company or an organization possessing the rights, to an individual or a group qualifying them to carry out specified commercial activities as an agent to market, sale or promote that company’s products. Pharmaceutical companies have large varieties of products and they keep on constant developing new products. This type of agreements gives Pharma companies a rise in their income apart from their regular income from the product.
CONCEPT OF PCD FRANCHISE
PCD is an acronym used for Propaganda Cum Distribution. This is a jargon used in Pharmaceutical industry. This concept is comparatively new to the market. PCD Franchise is a win-win situation for both Pharma Companies as well as for the PCD Franchise Holder. It is an authorization granted by pharmaceutical company to carry out the company’s proprietary knowledge, products, trademarks, patents for monopoly rights or other mutually agreed terms and conditions between the parties.
DIFFERENCE BETWEEN THE TWO CONCEPTS
The terms are often interchanged for each other among the laymen. Now as we have understood the concept of both, Pharma Franchise and PCD Franchise, we would be moving on to the difference between them. The main difference among the two is of the size of the business.
PCD works in smaller units with less area, less investment and no specific target, while on the contrary Pharma Franchise works on larger units with higher investment, larger area of operations and specified targets.
Apart from the above stated difference, there is as such no other difference between the two agreements i.e. Pharma Franchise and PCD Franchise. Only the level of both business concepts and the scale on which they work or perform more or less differentiate them from each other. However, before investing one must have the clear understanding of both the concepts.