F R A N C H I S E (Testimonials)

Enjoy the Benefits of THEGENERICSPHARMACY Franchise

Every franchisee who joins our network benefits from a full support package that includes:
The right to use our trademark, name and logo

Start-Up and Pre-opening assistance

Site evaluation assistance
Architectural/Store design and construction assistance
Franchise operations manual
Extensive training on pharmacy retailing, business management/operations and customer service
Guidance and education on generic drugs
Provides uniform
Regular advertising support
Marketing and Promotion assistance

As our franchisee, you will be entitled to continuing support to help you run and maintain your outlet 's performance at optimum level. This
covers:
Regular monitoring of your outlet

Direct and Open-line communication with franchisor

Ongoing business consulting and guidance
Refresher trainings on new products, services, promotions or retail innovations
National and local store marketing support and guidance

FAQ
+ What is Generic Name?
Generic Name or Generic Terminology is the identification of drugs and medicine by their scientifically and internationally

recognized active ingredients or by their official generic name as determined by the Bureau of Food and Drugs of the

Department of Health

+ How much is the total franchise investment?

The total investment for The Generics Pharmacy franchise is about P600,000 to P800,000 for an outlet. This includes the

franchise fee as well as a total support system necessary to run The Generics Pharmacy.

+ What does the franchise fee cover?

The franchise fee covers the cost of providing you with pre-opening and start-up assistance, initial training and other

support and business development services. For a complete listing of the package, please visit the FRANCHISE PAGE at

www.thegenericspharmacy.com/fbenefits.php

+ What is the term of the franchising agreement?

The initial term of the franchise agreement is three (3) years, renewable to 2 additional 3-year terms for a total of 9 years.

+ What other continuing support will I receive?

As our franchisee, our representatives will provide advice and guidance, and check quality control compliance, and may be
 consulted on any matter you may encounter as you operate the business. Refresher trainings may also be provided as

needed.

+ How much is the royalty fee?

The royalty fee is 1% of gross sales for continuing support services.

+ When do I pay the Royalty fee of 1% of sales?

Monthly on every 15th of the succeeding month.

+ Will franchisor increase franchising and royalty fees in the future?

Yes, depending on prevailing situation.

+ Will we get a comprehensive operations manual?

Yes, after you sign a franchise agreement, you will receive a copy of the Confidential Operations Manual containing policies

and procedures involved in running the business.

+ Will we be trained on The Generics Pharmacy system of operations?

Yes. At our company owned outlets, franchisees and their staff will be given 3 days training on pharmacy operations,

services as well as orientation of generics products and customer service. Training is done 15 days before grand opening.
+ What if the space is less than 15 sqm?
It will not be approved by FDA.

+ Will I have exclusive territory?

You will not receive an exclusive territory. However, The Generics Franchising Corporation will see to it that each site will

service the population to the fullest to make the business viable.

+ What are the opening hours?

Each franchisee will decide dependent on the market demands.

+ When do I return unsaleable stocks?

Within 90 days from the date of purchase.

+ When should I pay for the initial stocks delivered?

When it is sold, then you will order, the company will deliver additional stocks also on consignment. The franchisee will pay

the oldest account first per invoice.

+ How to become The Generics Pharmacy Franchisee?

a) Submit the following:
 Letter of intent

Vicinity or location map of the proposed site

Filled-out Franchise Prequalification Form

www.thegenericspharmacy.com/frform.php

Resume with colored ID

b) We will review and evaluate your qualifications thoroughly.

c) If qualified, we will invite you to a business meeting to discuss the details and terms of the franchise prior to signing the

franchise agreement.

+ How do I start the whole process?

a. Attend The Generics Pharmacy Business Seminar at the scheduled date.

b. Call Mr. Miguel Antonio Lindo at 821-1111 local 411 to register.

c. Look for location and have it approved by The Generics Pharmacy Franchising Corporation.

d. Register with DTI if single proprietorship and SEC for Corporation.

e. Get a lease contract from landlord.

f. Proceed with the renovation (shelves and signage)

g. Look for a licensed pharmacist.

h. Complete the FDA requirements and send to TheGenerics Pharmacy.

i. Apply City Hall permits.

 j. Apply BIR permits.

k. Apply permit for POS and/or Sales Invoice & O.R.

l. Be prepared for actual training (franchisee, pharmacist, and assistant)

BENJAMIN LIUSON: He has made it his mission to cut down the price of the medicines he sells.

Building a business in non-branded products may seem counter-intuitive, but not for The Generics Pharmacy (TGP) Franchising Corp.
TGP has its roots in the Pacific Insular Co., which was established by German nationals in 1949. The company imported and sold pharmaceutical products
wholesale to drugstores and hospitals, among others. In 1960, the company was bought by the parents of Benjamin Liuson, who is now the company
president. The name of the company name was changed to Pacific Pharmaceutical Generics Inc. in 1999, and two years later, in 2001, Liuson's parents went into
retail sales by putting up DLI Pharmacy.
After over 40 years of wholesaling and seven years of retailing, Liuson decided that the business was ready to
take the franchising route. Thus, in the first half of 2007, Liuson started offering franchises for The Generics Pharmacy, offering solely generic medicine products
at low prices. Its first franchised outlet opened that same year on Taft Avenue corner Protacio Street in Pasay City.
Since then, TGP has opened over 100 franchised outlets, some of them breaking even as early as on their third month of operation. By the end of the 2008,
Liuson hopes to hit the 200-outlet mark.
"TGP has experienced tremendous success," says Liuson. For this reason, he has made it his mission to cut down the price of the medicines he sells. This
was even before the legal mandate for it came in the form of the Cheaper Medicines Act of May 2008.
Aside from giving the mandatory 20 percent discount for senior citizen purchases, TGP also offers free medical checkups to senior citizens. "Hindi ko ma-
imagine na marami ang bumibili ng isang tableta lamang ng gamot araw-araw dahil sa sobrang mahal [I couldn't imagine that some people buy only one medicine
tablet a day because the high prices prevent them from buying the prescribed number of tablets they need]," he adds.
Liuson says the success of TGP is also due to the different way it operates its pharmacies. To begin with, it gives its franchisees an equal chance of opening
outlets, thus minimizing competition among them. And since it doesn't employ agents, it saves itself the costs of product sampling and commissions. The
company makes profits simply from its wholesale operation, allowing franchisees to keep most of the profits at the retail end.
TGP's products are all generic, unlike other pharmaceutical outlets whose product composition is usually 90 percent branded and 10 percent generics. The
company can thus sell at very low prices. For instance, TGP sells paracetamol at only P0.50 apiece as compared to P3 in most drug stores.
A Generics Pharmacy franchise requires an investment of about P600,000, inclusive of the franchising fee, the cost of renovation, the POS (point-of-sales)
system, and an initial operating capital of about P250,000. The royalty fee is 1 percent of total gross sales.
Franchise applicants can choose from two franchise options: solo or express, and tandem or in-store. The solo or express franchise is for outlets located
near markets, hospitals, big drugstores, or inside shopping malls. The tandem or in-store franchise, on the other hand, is for outlets located inside medical clinics,
convenience stores, supermarkets, groceries, department stores, or cosmetic store.

TIPS FOR PUTTING UP A GENERIC MEDICINE OUTLET:

TGP's Benjamin Liuson offers the following tips to franchisees and other pharmacies offering generic medicine:

Find locations with high foot traffic, such as hospitals, schools, and public markets.
Maintain the good quality and the low price of your products.
Don't encourage drug sampling, considering that the medicines are already priced low.
Maintain only a maximum of two pharmacists to lessen accountabilities on lost items.
Have a manageable counter with all the medicines stocked in it.
Don't create a complicated organizational structure as it might just entail additional costs anddissipate profits.