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Just like any other new business, a franchise business has financial obligations that you have to meet that include startup costs and ongoing expenses. In general, the better the franchise brand is know, the more the

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

franchise will cost. All franchises require an investment ranging from several thousand to millions of dollars. Before buying a franchise, you need answers to specific financial questions.

How much initial invest

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

ent will you need to buy the franchise?

Your startup costs will include a franchise fee, an initial cash investment, professional fees, insurance, employee training, operating licenses, inventory, equipment, rent,

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

utilities, moving expenses, furniture, equipment, decor, signs, architectural fees, computers, and computer accessories. The franchise fee buys you the right to use the franchisor's trademarks, business methods, and

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

istribution. The average franchise fee is $20,000 to $100,000. The amount of the franchise fee will be determined by how well known the franchisor is and the size and location of the franchisee's territory.

Do your ow

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

calculations to determine your start-up and ongoing expenses. Franchisors may underestimate these expenses in order to make the franchise more attractive as a possible investment. If you rely on the franchisor’s est

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

mates, you could have insufficient funding for the necessary start-up expenses and ongoing expenses. Consult with realtors, contractors, insurance agents, and other service providers that you expect to use and do your

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

cost analysis of these initial expenses.

What are your ongoing expenses until the business starts showing a profit?

Ongoing expenses will include royalties to the franchisor, advertising fees, equipment mainte

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ance, employee costs, insurance, rent, professional fees, and inventory. The royalty fee will be a percentage of your gross sales, and the franchisor will require you to keep an accurate accounting of your sales. Bec

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

use it is based on gross sales rather than profits, you have to pay this expense whether your business is profitable or not.

Most businesses do not earn a profit for at least the first year. You have to plan for this

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

lean period and have other funding to keep your business operating. Always estimate your expenses high, because unexpected things always occur. Hardly any new business starts out with too much money for its expenses,

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

and you should expect a shortfall for the first year of operations.

How much available cash do you have to put towards the franchise?

Evaluate the assets that you can liquidate to meet your initial and ongoing

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

expenses. Franchisors require prospective franchisees to have a certain net worth going into the venture, and they will probably require you to have good credit. As you determine the cash you have available to invest

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

n a franchise business, don’t forget that you still have to pay your own living expenses until the business begins to show a profit.

What financing can you get to make up the difference between your expenses and ca

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

sh investment?

After you determine how much you can personally contribute to pay your expenses, you will have to get financing for any additional amounts required. Some franchisors provide financing, but you shou

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

d explore the financing options to be sure you get the best rate and the best terms. Any lender will require the loan to be secured by real and/or personal assets, and they will require you to personally guarantee the

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

loan.

What Help Does a Franchisor Provide to Franchisees?

A franchisor usually offers financial assistance, location selection, employee training, operations manual, standards and specifications of the franch

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

se, specific job descriptions, employees’ roles and performance, management standards and training, advertising, ongoing support, human resources, accounting, technical support, insurance advice, and other support rela

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ing to the operation of the franchise.

Jo Ann Joy, Esq., MBA, CEO The future of your business starts here!

You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email a

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016. I have many published articles, and I will send any article to you free of charge. Most consultations are free

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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In today's competitive world one thing that has become scarce in our lives is - 'TIME'. Time has become the most important commodity for working as well as non-working segment of our society. In this age of growing popularity of shopping malls due to time and resources constraint, sometimes it becomes difficult to physically go out. Shopping is inevitable for everyone whether we like it or not, as shopping is done right from basic commodities to luxury goods. Hence the new concept that enables us to do shopping at a click of a mouse is 'Online Shopping'.

Exceptional achievers make sure their surroundings reflect their commitment to perform at their best. Decide how to change your space so you feel more inspired, and watch your productivity and satisfaction levels soar.

The most unusual franchise opportunity that I have come across specialises in cleaning mattresses! They have turned this business into an art form. The way I clean my mattresses is by taking them out on a cold day and hitting them with a hard brush. The brush dislodges all the loose material whilst the cold kills any bed bugs.

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