PCD Pharma Franchise Marketing Agreement – PCD pharma franchise in India is a very successful business platform for all. Those who want to have their own business in the pharmaceuticals business can opt for PCD format. The franchise encourages good return on investment and profits in near future. All you need is good marketing techniques and salesmanship. Like every other business, it also vulnerable to frauds and risk. A PCD pharma franchise marketing agreement solves all your problems.
A PCD franchise business offers small quantity bulk buying from the Pharma companies or manufacturers. Then the stock is further resold at a higher margin for profit. A PCD pharma franchise marketing agreement is an important part of a business deal. In this post by Sunwin Healthcare, we are going to tell you everything about PCD pharma franchise distribution and marketing agreement in India.
What is PCD Pharma Franchise Distribution and Market Agreement? What Are Its Importance?
An agreement is a legal contract (written or verbal) based on negotiations and mutual understanding of both the parties. In the Pharma industry, the companies and manufacturers appoint various channels of distributions. One of them is PCD franchise. The business format occupies small business scale capacity. They are a part of distributors and wholesalers distribution channels of the pharma world.
A PCD pharma franchise marketing and distribution agreement are set to written terms and conditions. These are negotiated by giving and take discussion which is transformed in an agreement. Both the parties keep their part of the negotiation and the actual agreement (legal contract) comes into existence.
It is essential for all the pharma parties to bind in a written set of PCD pharma franchise marketing agreement. It is of much benefit for the pharma company and pharma manufacturer along with the franchise members. Here are the advantages of signing a PCD pharma franchise marketing agreement in India:
- It helps you foresee future better through terms and conditions your agreement carry. A measure of certainty can be drawn through it.
- Your expectations and goals become clear with no arise conflicts or confusion in a later day.
- It helps avoid legal litigation cases as half of the problem is sorted out through the agreement.
- The agreement works as security base for all small franchise holders like PCD. Termination of contract can lead to great losses for such businessmen.
- It saves a lot on time, money and energy of both the parties.
What Are Basic Elements That You Should Look In A PCD Pharma Franchise Marketing Agreement?
A Pharma franchise distribution and marketing agreement should be in written form. It is essential for you to have an agreement signed to avoid mishappenings later in future. The act of agreement is voluntary. It is your decision if you want to have it or not. It is advised to have a written agreement beforehand. Here are the elements you should seek in your agreement:
- Clearly mention your business area or territory with boundaries.
- The agreement is exclusive or not i.e. monopoly rights are given or not.
- The range, type and number of pharma products/ medicines/ drugs that you can sell should be mentioned.
- Clause depicting the renewal of agreement and termination of agreement should be there.
- Minimum order quantity (MOQ)
- Resale prices set by the company (Optional)
- Clause for unsold merchandize whether you can keep it or not and other things related to it.
- Promotional tool benefits that you are getting.
- Do not forget to see the name and address of the company and authorized person.
- Elastic stamps and Stamp paper.
- Two witnesses
A marketing and distribution agreement is the best way to have the sense of security and trust from both the parties. Termination or fraud from any party can result in a loss. A PCD franchise business is more vulnerable to such acts were untimely termination takes place in case of no agreement. Make it mandatory to have a written PCD pharma franchise distribution and marketing agreement signed.