Most problems in a PCD franchise start with something that was never asked. These ten questions help you compare companies on facts rather than promises. Ask every company the same questions, and ask for documents where a document exists.

1. Which licences and registrations do you hold?

A company that sells medicines at wholesale needs a wholesale drug licence from its state authority (for most allopathic medicines, Forms 20B and 21B) and GST registration. Ask for the licence numbers and the GSTIN, and check that the business name and address on them match the company you are dealing with.

What a good answer looks like: the numbers are shared readily, often already published on the company’s website, and the address on the licence is the office you would visit.

2. What do your certifications actually cover?

Certificates are often quoted loosely. An ISO 9001 certificate, for example, covers a quality management system for a stated scope. A certificate for “trading and marketing of medicines” is not a manufacturing certificate.

Ask for: the certificate itself, its scope, its expiry date, and how to verify it with the certification body.

3. Who manufactures the products?

Most PCD companies market products made by licensed manufacturing units. That is normal, but you should know who makes what you sell.

Check: that the manufacturer’s name and manufacturing licence number are printed on the label, and ask which unit makes the products you plan to sell most.

4. Are compositions, strengths and packs published clearly?

You will be explaining these products to doctors every day. You need the exact composition, the strength of each ingredient, the dosage form and the pack size for every product.

A warning sign: products listed only by brand name, or compositions without strengths.

5. How is my territory defined, and is it exclusive?

Ask exactly which area you will cover and whether any rights in it are exclusive. If exclusivity is offered, ask what it depends on (for example a minimum order) and how long it lasts.

Get it in writing. A territory that is only agreed on a phone call is difficult to rely on later.

6. What are the price list and payment terms?

Ask for the current price list for your area, whether prices include GST, how often the list changes and how you will be told. Then ask about payment: advance, credit, or a mix, and whether there is a minimum order.

7. How are orders dispatched, and how long does it take?

Ask how goods are sent (transporter, courier), who pays for transport, how long delivery usually takes to your area, and what documents come with each consignment: the invoice, and batch and expiry details for each product.

8. What is your expiry and breakage policy?

This is the question most new partners forget. Ask what happens to stock that is close to expiry, whether expired or damaged goods can be returned or replaced, within what time, and what proof is needed.

Get the policy in writing before your first order, because it decides how much risk you carry on slow-moving products.

9. What promotional support do you provide?

Ask what material is supplied with each order: visual aids, product cards, literature, samples, MR bags. Ask whether it is free or charged, and whether it is available for every product you plan to sell.

Promotional material for medicines should stay within the approved product information. Be cautious of material that makes claims beyond what is on the label.

10. Who do I contact when something goes wrong?

Ask who your point of contact is for orders, for dispatch problems and for product questions, and how quickly they usually respond. If you can, visit the office: a company you can meet in person is easier to work with when something needs sorting out.

Use the answers to compare companies

Put the answers side by side. A company that answers clearly, shares documents without hesitation and puts its terms in writing is usually easier to build a business with than one that offers more but documents less.

For how the PCD model works in general, read what a PCD pharma franchise is; for the steps from licence to first order, see how to start a PCD pharma franchise.

You can check Ancare Life Sciences’ own licences, GST registration, certificate scope and trademark on our quality and certifications page, or contact us with your questions.

This guide is general information, not legal advice.