Magazine article Drug Topics

New Franchise Seen as Best Hope for Independents

Magazine article Drug Topics

New Franchise Seen as Best Hope for Independents

Article excerpt

It could become the nation's largest drugstore chain. But for now, the founders of American Family Pharmacy have a more modest goal. They want to sign up 1,000 independent pharmacies in a franchise venture by Feb. 15 and 1,000 more by the end of 1997. The initial charge is $7,500 with an annual levy of $3,000 and no royalty fees. Lowrate financing is available.

The officers of the franchise include some names that are very familiar in pharmacy: Charles M. West, the recently retired executive v.p. of NARD, as chairman; Larry Braden, who is resigning after 18 years at the helm of the Georgia Pharmacy Association, president and chief franchise officer; William Mincy, a pharmaceutical industry consultant, chief operating officer; and Mark Pilkington, who resigned as executive director of the Illinois Pharmacists Association, a regional v.p. All are registered pharmacists.

"Today marks the beginning of the end of the decline of independent pharmacies," Braden declared at a news conference in Washington last month. The owner of three stores, he said that "maintaining the status quo for independent pharmacies will not work." West called the annual demise of 2,000 independent pharmacies a "tragedy for the citizens of this country, and it must stop."

They likened their concept to that of the hardware store industry, where individual owners operate under the banner of Ace, True Value, and ServiStar. Mincy conceded that the independents would have to give up some of their independence to reap the expected benefits. He said AFP would negotiate discounts and rebates with brand and generic manufacturers and other suppliers and return 75% of the amount to the franchisees. AFP will establish a formulary and create a private-label program. It will negotiate local, regional, and national thirdparty contracts. "In the long-term, we may be a pharmacy benefit manager," he said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.