What is Pharma Franchise Business? Reasons of Popularization and Future Aspects

Pharma Franchise Business and/or PCD Business may be strange word for common people but pcd or pharma franchise is well known word for persons that are related to medicines and pharmaceutical sectors. In period of 1990’s when India begun its new era. One sector were going to change in India and that was pharmaceutical sector.
Pharma Franchise Business concept totally changed the direction of field and provided the opportunities to small Pharmaceutical companies and pharmaceutical professionals to grow and start their own work.

The word franchise is come from the Anglo-French word means “Liberty”. If we go through history of franchise – that goes before eighteenth century. In modern time new era of franchise begins in late 19th century. In every sector like auto, soft drink, food etc franchise concept is so popular. Before 1950, in USA only less than 100 companies provide the franchise. In today business it will be difficult to count the numbers.

Pharma Franchise Business Concept:

First we need to understand the Pharma Franchise Business Concept. Pharma Franchise Business Concept is worked at business agreement between two parties. Supplier and Seller.  Supplier may include Pharma Marketing Company and/or Pharmaceutical Manufacturing Company, carry and forwarding agent, distributor/wholesaler etc. Supplier may includes CNF, Distributors/Sales Professionals/Agencies, retailers etc.

Supplier procure and/or produce the product where as seller promote and sell the product. Profit margin, promotional and advertisement material, expenses etc is as per mutual agreement.

Generally product investment at stock & new products, promotional inputs and advertisement etc is taken care by supplier end whereas doctor’s expenses, market investment, sales persons expenses  etc is taken care at seller’s end.  Read in detail about Pharma Franchise Business and How it Works by Clicking here

Why franchise business concept (PCD) is popular in pharmaceutical sector? We will try to focus at the reasons and causes.
Reasons of Popularity:
Low Marketing Cost: 

That may be one of the main reason behind pharma franchise popularity. Huge marketing cost for a small pharma company matters a lot. From general manager to medical representative, foreign tour to small gifts, C&F to retailer, Pharma Company has to spend huge money and effort. Pharma Franchise concept makes this process less costly and efficient. Pharma Franchise concept helps in reduction of direct sales man power and their expenses, hence franchise companies marketing and promotion cost come done.

Low Administration Cost: 

For a Pharma/Ayurvedic franchise company less staff force for handling work. Even in case of small companies only one or two professionals can manage. Whole country’s marketing can be managed by single office.

Own work at small investment:

If you have links with doctors and passion for your own works franchise marketing is best opportunity for you. For pharma marketing professionals, pharma franchise concept is like – they are their own boss. Franchise marketing and distribution work can be started with investment as low as ten thousand rupees.


Pharma Franchise business is profitable business. A franchise distributor can earn handsome income with minimal efforts. Fifty thousand to one lakh income could be earned by a person after two years of own marketing. calculation of profit margin can be done by visiting our article: how much profit a franchise distributor can earn? Companies also earn huge profit by distributing at franchise basis.

Share of Responsibilities:
If any person has pharma sales experience but don’t have any knowledge about manufacturing, distribution channel then pharma franchise come with hope for self employment. Pharmaceutical company provides the product and franchise sell it further. Franchise is work of share responsibility, companies are to provide products and promotional whereas franchise distributors work is to promote and get prescription by doctors. It divides responsibilities without affecting the cost of model.
Simple Distribution Channel:

Pharma Franchise model works at simple distribution channel. Products could be distributed by appointing a c&f or directly to distributors. It doesn’t require expertise in developing distribution channel. A average knowledge person can easily set-up distribution channel all over country.

Easy Availability:
Last not least, easy availability of franchise companies and franchise distributors/marketing persons make it easy for taking this concept at further level. Companies can easily find out distributors through promoting its company (Read how to find franchise distributors here?) and distributors can easily find out franchise companies detail through Internet, drug books and medical news papers etc. list of franchise companies get here

Future of Pharma franchise:

If we talk about future of franchise in pharmaceutical sector, franchise business is growing – if we roughly say, one pharma franchise company has launched daily. But with growing pharmaceutical sector it will be not so easy for PCD’s companies to maintain their growth. Increasing strictness with new policies, DPCO, and amendments of law makes life for Franchise companies (PCD) more miserable as compared to before 2010 era.

Defaming of Pharma Franchise companies (PCD) in recent years, cut throat competition, decrease in margin, awareness about branded and generic products, awareness about manufacturing cost of drugs in public and professionals, unprofessional approach and poor services are few factors that are being faced by PCD companies.

In recent time, pharmaceutical sector are at changing state. In which side camel seat, no one knows. Pharma Franchise (PCD) business has its own pro and cons. But one thing is sure, pharma franchise is only option for small pharmaceutical companies and enterprises to compete with multi nation companies.

It’s necessity at current time to save the future of small and medium scale Indian Pharma Companies. What policy govt. make, they have to take care of small manufacturers and marketers.

Hope for a brighter and best future for Indian Pharmaceutical and Herbal Sector.

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How to Apply for A Trademark Registration?

We have studied in our previous articles about procedure and requirements to start pharmaceutical company , ayurvedic company and Food Supplement company. In this article we will discuss about trademark registration process, procedure, documents, requirements, difference between objection/opposed, advantage, FAQ and other related details.

In this article we will know about trademark registration.  Same procedure and requirement for Trademark is applied for all business including Pharmaceutical, Ayurvedic and Nutraceutical (food Supplement) Sector.

What is Trademark?

First we will know about Trademark. Trade mark is generally referred to a company name, brand/product name/service and/or logo of company and/or firm. A Trademark can be in form of visual symbol, word, numeral, name, device and/or lable etc which distinguish a business from others . For Example, Elzac Herbals along with sign is a Logo of Elzac Herbal India, An Ayurvedic Manufacturing Products Company. We can say Elzac Herbals is a Trade Mark.

If you are going to launch a company and/or a new product then it is advised to first go for trademark registration before launching.  Trademark registration is an intellectual property which protects against use of your trade/business name or trademark by others.

Trademark registration:

Trademark registration can be obtained for business name, brand name, logo, tagline or caption etc. Company Name and/or Products Brand Name can be registered under Controller General of Patents Designs and Trademarks. Trade Mark is valuable asset especially in case of pharma companies it worth more.

‘TM’ stands for ‘Trademark applied for’ where as ® symbol stands for the ‘Registered trademark’. Before apply for trade mark, Trade Mark search is highly recommended. This will give you indication of existing or applying trade marks. Go to the http://www.ipindia.nic.in/ site. Click at trade mark and you will be redirected to http://www.ipindia.nic.in/trade-marks.htm. Then click at public search. In new tab http://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx will be opened. Change search type to phonetic or Wordmark. Enter your brand name or company name and class. For pharmaceutical and ayurvedic product’s name and manufacturing company, you can search in Class-5 and for trading/marketing company, search in class-35.

You can apply trade mark registration through amy legal firm or trade mark advocates those handle trade mark registration for your trade mark registration. For providing authorization, you have to sign power of attorney authorizing for particular brand name/company name trade mark registration.

Requirements for filling a trademark  registration application:

  • The name, address and Nationality of applicant/s. In case of Partnership firm, Name of all Partners. Soft copy of the Trade Mark to be registered.
  • List of goods/Services for which registration is required along with Class.
  • If the mark contains or consists of non-English words, a translation of those words into English is required.
  • Power of attorney simply signed by the applicant (In case of application filled by advocate and/or legal firm/agency).
  • Fees for registration. Govt. fee is approximate 4500/- per trade mark. Fees may change with any government policy update.
  • Proof for using particular name (like Invoice, Advertisement etc.)

Process Includes:

  • Trade Name and/or Logo. If you don’t have then choose a Unique Name and/or Logo.
  • Search for Trade Mark Availability as mentioned above
  • Select appropriate class from 45 Classes. (For Pharmaceutical, Ayurvedic and Nutraceuticals generally Class 5 and Class 35 is used.)
  • Application submission for Trade Mark registration. It takes 3 working days for trade mark department to issue Trade Mark application Number but it takes 1.5-2 years for Trade Mark registration if your application don’t receive any objection other wise it may take more time.
  • Advertising a trademark in government public gadget before acceptance for trademark registration. Objections and oppositions are invited by government from public before going in registration process.
  • Hearing before registrar if your trademark faces any objection.
  • Hearing before registrar if your trademark faces opposed.

Difference between Objection and Opposed:

Objection in trademark registration is something that a particular trademark and/or similar trademark or name may have being used by someone else. Objection may be raised by trademark department internally or any third person. Means there is uncertainty about trademark whether it may cause any harm to any other trademark owner or not if trademark registration is given to you or someone else. Objection may also be raised if trademark department is uncertain whether trademark applicant is using that trademark in actuality or not.  For clearing objection, proper proof and documents have been submitted before registrar at hearing date issued by trademark department.

Opposed in trademark registration is when a third party files application against giving registration of particular trademark to you or someone else. For clearing opposition, a legal case has been fight against opposed party for taking trade mark registration.

Advantage of Trademark Registration:

Legal Protection: Trademark registration provides legal protection against using your trade name and/or mark used by any other person, company or/and firm. No can use your trademark without your prior permission.

Brand Trust: Trademark Registration separates a trademark from others. Registered Brand makes an trusted impression at customer mind set. It builds a trust between trademark owner and his customer.

Popularization: If a trademark is registered then trademark owner is free to promote it at large level without fear of misuse and/or use by any other party.

Trademark Symbols:

Three types of Symbol is used for trademark purpose: ‘TM‘, ‘SM‘ and ‘R‘.

TM: Trade Mark applied for. This symbol is used for product when it is not registered but is applied for trademark registration.

SM: Service Mark applied for. This mark is used when trademark is applied for Service/s, not for product.

R: Registered. This mark is used when a trademark has been accepted for registration and registration license has been granted to trademark owner.

Frequently Asked Question about Trademark Registration:

How many types of Classes under Trade Mark Registry?

Ans: Trademark Registry has classified Trademark classes under 45 classes according to product and service type.

In which class Pharmaceutical, Cosmetic, Ayurvedic/Herbal and Food Supplements products/Services and Companies comes?

Ans: Pharmaceutical, Ayurvedic and Nutraceutical Products and preparations fall under class 5 where as companies fall under class 35.

What is the Duration of trademark Registration Certificate Validation?

Ans: A trademark registration is granted for 10 years but trademark licensee can renew it after every 10 year and use it for indefinite period.

When a applicant use symbol ‘TM’?

Ans: After getting trade mark registration number after submitting application, applicant can use symbol ‘TM’ but he/she can’t use ‘R’ symbol unless his/her trademark is received registration certificate.

If my company is registered under Company Act, Do I still need Trademark Registration?

Ans: Company registration under Company Act doesn’t cover or protect brand identity. For example, Your registered a company under company act with name ABCD Herbal private limited. In that case another person is free to register company with name ABCD Ayurvedic Private Limited but if you have trademark registration of ABCD then no one can use  ABCD for registration of company even under Company Act because Company Act also doesn’t allow to register a company with name that is trademark registered by other person.

Can I apply for Trademark Registration by own self?

Ans: You can apply by own self at trademark registry website. You will require class III digital signature for applying trademark registration online by own self.

What to confirm before applying a trademark through Advocates and Legal firms/Agencies?

Ans: Applying for Trademark registration is not a big thing. Most of online agencies and advocates lure customers by charging 1000 applying fees plus government fees. Most of them doesn’t cover ‘Objection‘ part in it. Almost of trademarks faces objection during registration process. So before applying through any advocates or/and legal firms first confirm whether they will handle objection or not during registration process. Otherwise you have to pay more money for clearing objection from your trademark registration process.

Read Here: How much investment is required to start pharma marketing company ?