How to Franchise: The Generics Pharmacy (TGP)

Interested to franchise The Generics Pharmacy (TGP)? Here are relevant information to help you understand how to franchise, how much the franchise fee is, and who to contact to start your own The Generics Pharmacy franchise.

About The Generics Pharmacy

The company started in 1949 under Pacific Insular Co., a German importer and wholesaler of medicine. In 1959, the Liuson family bought the company from the original owners. Recognizing the need for affordable medicine, TGP chairman Mr. Benjamin Liuson decided to focus on wholesale generic medicine at lower prices and lower margins in 1983.

The company ventured into retail in 2001, maintaining one branch in QC, but then already serving customers as far as Batangas. As demand grew, the company decided to increase the accessibility of affordable generics through franchising beginning the year 2007. In the same year, TGP opened its first franchise outlet in Pasay City followed by 20 more stores in Metro Manila.

In 2016, Robinsons Retail Holdings Inc. (RRHI) acquired a 51% majority stake in TGP. As of 2017, TGP claims to have 1,900 outlets nationwide, supposedly making it the largest drugstore chain in the Philippines.

Franchise Fee and Total Investment

The franchise fee and total investment for a TGP outlet is around P600,000 to P800,000. This includes the support system necessary to operate TGP.

In addition, all stores are required to pay 1% of the gross sales as advertising fee. This is paid on or before the 15th of the succeeding month.

There is also a 1% royalty fee from gross sales for continuing support services.

Franchise Package Inclusions

• Three (3) mandatory trainings, including:

1. Community Pharmacy Training – for store personnel
2. Pre-Operations Training – for franchisees
3. Continued Franchise Education Seminar – for franchisees and/or store personnel

• Full support package that includes:

1. Right to use TGP’s trademark, name and logo
2. Start-Up and Pre-opening assistance
3. Site evaluation assistance
4. Architectural/Store design and construction assistance
5. Franchise operations manual
6. Extensive training on pharmacy retailing, business management/operations and customer service
7. Guidance and education on generic drugs
8. Regular advertising support
9. Marketing and Promotion assistance

• Continuing support to help run and maintain their outlet’s performance at optimum level. This covers:

1. Regular monitoring of outlet
2. Direct and Open-line communication with franchisor
3. Ongoing business consulting and guidance
4. Refresher trainings on new products, services, promotions or retail innovations
5. National and local store marketing support and guidance

Investment Payback Period

According to the company, the expected payback period to recover the franchise fee investment is around 2 to 3 years. The actual payback duration is, of course, dependent on the overall performance of the TGP outlet.

The initial term of the TGP franchise agreement is three (3) years, renewable to two additional 3-year terms, for a total of 9 years.

Requirement of Registered Pharmacists as Staff

Under Philippine laws, the operation of a retail drugstore requires the supervision of a registered pharmacist. This is mandated by section 29 of Republic Act No. 5921 (An Act Regulating the Practice of Pharmacy and Settings Standards of Pharmaceutical Education in the Philippines) which states that:

“Every pharmacy, drugstore or hospital pharmacy whether owned by the government or a private person or firm shall, at all times, when open for business be under the personal and immediate supervision of a registered pharmacist. Provided, that no pharmacist shall have personal supervision of more than one such establishment. In cases where a drug establishment operates in more than one shift, each shift must be under the supervision and control of a registered pharmacists.”

Location Requirements

The company requires a TGP location to be at least 1 kilometer away from the nearest TGP drugstore or be located inside a mall with a cinema. Each TGP outlet must be at least 15 sq. m. in size, otherwise, it won’t be approved by the Food and Drug Administration (FDA) of the Philippines.

Franchise Application Steps

Those interested to acquire a TGP franchise should submit the following:

• Letter of intent
• Vicinity or location map of the proposed site
• Filled-out Franchise Pre-qualification Form
• Resume with colored ID

The company will review the application and, if qualified, the potential franchisee will be invited to a business meeting to discuss the details and terms of the franchise prior to signing the franchise agreement.

Contact Details

Interested franchisees may contact TGP at:

The Generics Pharmacy

Km. 14 Edison St., corner Cul demsac St., Leviste Homes

West Service Road, Sun Valley Paranaque City 1700

Telephone Number: (632) 821-1111

Fax: (632) 821-5304; (632) 821-6103; (632) 823-0267

See other franchise opportunities in the Philippines: Complete list of Philippine companies available for Franchising

Information and Image Sources: Official company website (www.tgp.com.ph)