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If you plan to venture into the pharmaceutical sector then opt for a PCD pharma franchise business. This line of business involves pharma products and their marketing and distribution. The basics of starting this business are minimum investment, preferred area for your business, and optimum knowledge in this field. Now, this may sound lucrative, but like other businesses, this sector also has its share of risks. Running a PCD pharma franchise can come with the risk of being terminated by the main pharma company.
It happens due to several reasons; it may be due to the fault of the franchise owners, the parent pharma company, or other reasons. The point is to opt for a way that helps secure both the partners. This creates the need to have a mutual agreement between both partners to prevent any legal and other issues in the future. Now, this is an agreement or a legal contract created based on the terms and conditions and preferences of both parties.
Advantages of Having a PCD Pharma Franchise Distribution and Market Agreement
In any business we do – it is vital to have a sense of security on it. Similarly, A PCD pharma franchise marketing agreement is essential for securing your PCD pharma franchise business. The details and conditions mentioned in it are beneficial for both parties.
- All the terms and conditions specified are present in the agreement.
- Both the partners mutually agree upon all the factors of this agreement, like the rights, goals, rules, termination clauses, etc.
- It works as a legal document for both parties.
- With this agreement, the chances of any dispute in the future are negligible.
- These agreements can save time, energy, and money – for both parties in the future.
- It fosters strong partnerships.
- The agreement provides a clear vision of the future, creating trust and confidence.
Essential Points for PCD Franchise Marketing & Distribution Agreement in India
A marketing and distribution agreement of a Pharma franchise company is mutual; it depends on whether both partners agree. Also, it is wise to have such agreement in written official and legal documents. Having such an agreement will minimize any misunderstandings and disputes in the future.
A few of the essential points to include in the franchise marketing agreement are
- The pharma company gives monopoly rights to its PCD partners for a specific area. This exclusivity must be clearly stated in the agreement.
- Clearly identify your territory or business area. This area or region refers to the places where you will sell PCD pharma products.
- Check that the agreement makes it clear if there are other distributors in the designated area.
- The agreement must define the range of pharma products allowed for sale. It needs to clarify the restrictions if any, on selling the product range of the parent company.
- Ensure the agreement states if certain conditions will renew automatically or need approval from both parties.
- It should have a clause that specifies the minimum order quantity.
- It should also clearly state the conditions for late delivery, unsold products, payment methods, and late payment.
Conclusion
Summing it up, signing a PCD pharma franchise marketing agreement creates a sense of security and trust between both partners. It should be read and understood thoroughly by both parties before signing it. Creating an agreement is vital as the PCD Pharma franchise business model is becoming more and more popular. Kamron Group – a leading PCD Pharma Franchise Company, strongly believes in being transparent in all of our franchise dealings. Contact us today to discuss this further and be our authorized franchise partner.