Start a TGP franchise in the Philippines Today
TGP has carved a name for itself as one of the leading pharmacy franchises in the Philippines. Seeing the need for everyday Filipinos to have access to affordable yet quality medicine, the company pivoted its operations and focused on delivering generic medicines to Filipinos instead.
In 2001, TGP branched out into retail, opening its very first branch. It quickly realized, though, that one was not enough. With the franchising model, TGP was able to reach Filipinos in every corner of the country. In 2007, it set out with its first 20 franchises within Metro Manila.
|Franchising Fee||₱ 150,000.00|
|P.O.S. (Hardware and Software)||110,000.00|
|Total Capital||₱ 674,000.00|
|Breakdown of Operating Capital:|
|5 mo. rent x ₱ 24,000.00||120,000.00|
|2 mo. Light, Water, Tel x ₱3,000.00||8,000.00|
|2 mo. 2 Pharmacists’ salaries x ₱20,000.00||80,000.00|
|2 mo. 2 Assistants’ salaries x ₱12,000.00||48,000.00|
|2 mo. miscellaneous x ₱4,000.00||8,000.00|
|Rent, light, water, telephone||₱ 28,000.00|
|2 Pharmacists’ salaries||40,000.00|
|2 Assistants’ salaries||24,000.00|
|Initial Stocks or Inventory||150,000.00|
|Break-even Sales per Month||240,000.00|
|40% Average Gross Margin||94,500.00|
|Break-even Sales per Day (30 Days)||₱ 8,000.00|
Royalty Fee: 1% of the total monthly gross sales
Advertising Fee: 1% of the total monthly gross sales
Total Franchise Fee: P300,000
- Initial Pay-out: P150,000.00
- Balance of 75,000 PDC dated Year 3
- Balance of 75,000 PDC dated Year 6
*Last updated date on our ROI brochure (April 1, 2019)
How much does it cost to franchise a TGP?
The total investment needed for a TGP franchise is around P600,000 to P800,000 per outlet (depending on your preferred size). This price includes the franchise fee and the total support system you will need to successfully run your franchise.
What Does the Franchise Fee Cover?
TGP store franchise fee covers the cost of (1) providing you with the pre-opening and start-up assistance that you will need such as site evaluation, architectural and store design, and construction assistance; (2) initial pharmacy retail training for you and all of your staff; (3) regular advertising support, and; (4) business development services. This also includes the rights to use the TGP trademark, name, and logo.
Royalty and Additional Costs of Operating TGP Franchise
As of 2021, TGP has a royalty fee of 1% of the gross sales for continuing support services.
All TGP retail franchises are required to pay 1% of their gross sales as advertising fee. This is to be paid on or before the 15th of the succeeding month.
TGP reserves the right to increase franchising and royalty fees in the future depending on the prevailing situation.
What are the Terms of the Franchising Agreement?
The initial term of the franchise agreement is three (3) years, and an additional two three-year terms for a total of nine years.
How to start a TGP Franchise?
At TGP, it is our goal and mission to see each of our franchises succeed. Therefore we are proud to provide each one with the Total Support Package. This means that those interested in franchising TGP can expect to receive a strong operation and support system so you can run your business successfully while enjoying an investment with proven economic viability.
Here are the necessary steps for those interested in opening a franchise.
- Submit the following:
- Letter of intent;
- Vicinity or location map of the proposed site;
- Filled-out Franchise Pre-qualification Form, and;
- Resume with colored ID.
- TGP will review and evaluate your qualifications thoroughly.
- If qualified, TGP will invite you to a business meeting to discuss the details and terms of the franchise prior to signing the franchise agreement.
How to Start the Franchising Process
Ideally, a TGP location should have a minimum space of 15 sqm. for a stand-alone or in-line unit which must be located near hospitals, medical clinics, competing drugstore chains, health food stores, public markets, supermarkets, department stores, cosmetics, and convenience stores.
Potential franchisees must meet the investment requirements and must be able to run the franchise full-time. Also, keep in mind the following:
- Attend TGP Business Seminar at the scheduled date.
- Call Ms. Shiela Cortes at +632 8821-1111 local 406 to register.
- Look for your prospective locations and have it approved by TGP Pharma Inc. Location must be at least one (1) kilometer away from the nearest TGP drugstore or inside a mall with cinema house(s).
- Register with DTI (if single proprietorship) or SEC (for corporations).
- Get a lease of contract from your landlord.
- Proceed with the necessary renovations (shelves and signages).
- Look for a licensed pharmacist to run your franchise.
- Complete the FDA requirements and send these to TGP.
- Apply for the necessary City Hall permits.
- Apply for the necessary BIR permits.
- Apply for the necessary permit for POS and/or Sales Invoice & O.R.
- Attend the various training seminars provided by TGP (franchisee, pharmacist, and assistant).
Why choose a TGP Franchise?
TGP is regarded as a respectable supplier of generic medicines in the Philippines. Owning a TGP franchise is beneficial because:
- It has a huge market potential. Thanks to its dedication and commitment to providing a wide range of affordable medicine, TGP continues to be the leading retailer of quality generic medicines. Franchisees will get a highly profitable and stable investment that will surely provide huge returns.
- It has a 90% Success Rate. Franchising has proven to be a successful way to invest your money, with a 90% success rate in the Philippines. Regardless of the economic climate, it can provide franchisees with steady income.
- TGP provides a Support Package. TGP wants nothing more than for franchises to succeed which is why we provide support before, during, and after franchises have been set-up.
Now is the perfect time to grow your money while helping the everyday Juan. Get started on your TGP franchise journey today!