Success Factors of Franchising Retail Pharmaceutical Companies A Proposed Action Plan for Entrepreneurs

This study determines the success factors of franchising in pharmaceutical companies to be the basis for a proposed approach for aspiring franchisees. Specifically, it aims to present the profile of successful franchisees in terms of their expansion strategies, and professional qualifications; determine the franchise ability factors of a pharmaceutical retailer business and identify the success factors among the successful franchisees in the pharmaceutical retailer business. The study used the descriptive, co- relational method to determine the success factors for aspiring entrepreneurs. Research triangulation was done such as interview, questionnaire and focus group discussions. The respondents of this study are the 76 franchisees which have at least two or more retail pharmaceutical retail franchises and more than 5 years of franchise experience. The researcher retrieved 70 representing 90% of the target market respondents. Results of the demographic profile of the franchisees revealed they have franchising businesses of 2 -3, half of them are in the franchising business for 5-6 years and still planning to expand their business to 6 more branches. At present, respondents are having more than 5 franchising branches (41.50 percent) with professional experience of 21 years and above, as to their educational background, most of these entrepreneurs are either college graduates or high school graduates. From the respondents’ perception, the highly important factors relative to the franchise ability is standardization; while important factors for them are profitability, flexibility, transferability, trustworthiness, and least important is management competency. When relationships were tested, there were demographic profiles found to be highly significant as to number of years and number of franchising to some franchise ability factors as to profitability, trustworthiness, transferability and flexibility, and standardization. Others, which are significant only are educational attainment and primary disciplinary expertise to dimensions as it is significantly related to management competency, trustworthiness, transferability and flexibility. There is no significant relationship between dimensions of franchise ability when grouped according to branches and years of operation.

Keywords –Success Factors, Franchising Retail, Pharmaceutical Companies, Entrepreneurs