Want to take franchise of a Diagnostic laboratory? Check this before you sign an agreement.

by admin Uncategorized

There are many types of franchise which are given by reputed laboratories. At present most of the laboratories are giving franchise for collection centers only, except a few which are giving it for processing labs. The cost for a collection centre is less (can range from 2 lakhs to 10 lakhs including all expenses depending on the location) compared to a processing centre (Can range from 20 lakhs to 1 Cr including all expenses depending on the size, location and type of equipment).  

One thing which we need to focus on is the management part- whether it’s managed by the Company or by you (The money is going to be spent by you for both). We are discussing only the collection centre franchise below operated by you.

Advantages

  1. Guidance on management. 
  2. Support for marketing activity.
  3. Support for setting up the processes and registration.
  4. Good will of the Company which may help you to get samples/business.
  5. Logistic support. 
  6. Sharing of revenue based on test category.
  7. Technical support on queries and clarifications. 
  8. Material support. 
  9. Helps you to try if you are not experienced in the field. 
  10. Start small and grow big. 

Disadvantages

  1. Franchise fee. (For collection centre any franchise fee <1 lakh is acceptable for a reputed company provided their support is genuine. Franchise from reputed labs is available from 35000/- onwards)
  2. Sharing of revenue for high end tests can be very less.
  3. Rules and regulations on the area of lab/interiors/insistence on type of materials and manpower can be a burden on you.
  4. Though they may claim that they would help you in getting samples, it’s actually otherwise- they are dependent on you for the business. 
  5. If its company-operated, then you may not have any control on the management of the lab. 
  6. Though good will may help but not always.