New Franchise Opportunity in the Health Sector


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Health Mode

An aspiring entrepreneur who decides to invest in a franchise is entitled to receive a blueprint for business success. In real life, however, this does not always happen. Far too often, a self-styled franchisor offers a franchise concept that has not been properly developed. We at whichfranchise.co.za examine each company’s track record before listing it on our website.

This does not mean that we will not list companies that are relatively new to franchising. We recognise that everyone has to start somewhere but insist that the necessary systems and procedures are in place before a franchise can be rolled out. The following case study outlines our approach.

Traditionally, non-pharmacists were precluded by law from operating pharmacies, turning owners of pharmacies into a protected species. However, in this fast-moving world of ours this was not sustainable and changes in the relevant legislation opened the traditional pharmacy sector up to competition from large chains. This is putting profit margins under pressure and the viability of traditional pharmacies at risk.

Mike Agathagelou, a qualified pharmacist based in Rustenburg, realised this early on and developed a new business model that would protect the financial viability of his business in the long term. Simply put, he managed to offer South Africa’s middle to lower income population access to primary healthcare at affordable cost. Established in 1985 under the name Health Mode, the concept has virtually unlimited potential. It is not unlike the famous drug store concept that is popular in the USA; not surprisingly, it proved to be a winner from the outset.
Encouraged by enthusiastic customer acceptance, Mike asked his university buddy Andre Lochner to join him in the business. In 2000, the duo established a second store which is equally successful. They spent the last few years refining the product range and fine-tuning systems and procedures. Today, Health Mode is the leading supplier of primary healthcare and related products and services in Rustenburg and ready for national expansion.

Mike and Andre decided to franchise the business but knew that while they understand their product range and have an excellent grasp of their target market, they lack the necessary expertise to set up a franchise. To address this aspect, they approached franchise guru Eric Parker for advice. Eric studied the concept, liked what he saw and put them in touch with Roland di Pasquale, a qualified pharmacist with strong business acumen and many years of experience in retail pharmacy and franchising. Roland, too, could quickly see Health Mode’s potential and joined the team as its franchise director.

Following a further few months of feverish activity, the franchise package is now in place and the franchise is ready for lift-off. Roland is scouting for suitable sites and Health Mode invites applications from suitable individuals with the wherewithal to become Health Mode franchisees. It is important to stress that legislation now permits non-pharmacists to own a Health Mode franchise. Applicants must have the wherewithal and business savvy to set up a Health Mode franchise and the necessary passion to operate it successfully.
For further information please turn to the Health Mode listing in the whichfranchise.co.za franchise opportunities section.

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