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TAMPA, Fla. — To help propel its rapid growth, Benzer Pharmacy has formally launched its franchise model to draw independent pharmacies to its brand.
The retail pharmacy chain said Monday that independents adopting its model can benefit from greater brand recognition as well as group purchasing power and combined cost of goods (such as for supplies, utilities, vials and labels) plus broad marketing support, including predesigned marketing materials.
“Benzer Pharmacy is now offering a franchise opportunity for those looking to start a new pharmacy and a conversion opportunity for pharmacies currently in operation,” Binita Patel, franchise development manager at Benzer, said in a statement.
Currently, Benzer has more than 50 pharmacy locations in Florida, Michigan, Virginia, North Carolina, Tennessee, Texas, Georgia, Nevada and Louisiana. It plans to open 20 to 30 new pharmacies this year.
Benzer executives have previously said that by providing a turnkey solution for independent pharmacies to rebrand to its banner, the company can grow to an additional 600 stores.
Independent pharmacies now face medication reimbursement complexities, a reduction in the number of prescriptions dispensed, and difficulties in access to specialty medications and vendor discounts, squeezing profits and sales growth, according to Benzer. The company said margin pressure is especially acute because 90% or more of the stores’ revenue comes from prescription sales, compared with larger pharmacy chains that can offset lower prescription reimbursements with front-end sales.
By coming together under a common identity and platform, independent pharmacies can leverage their collective strength, according to Patel. “To thrive in this industry, independent pharmacy owners need to collaborate under one unique yet individual brand,” she explained.
Besides greater negotiating power achieved through group purchasing, Benzer’s model offers full administrative support and access to all back-end services from Benzer corporate employees, including intensive marketing support for campaigns and public relations events. The company noted that it’s not feasible for an independent pharmacy to invest in high-end marketing such as billboards, television spots and radio commercials, but via franchising they can afford such marketing by sharing all expenses through the chain.
“Branding helps with recognition as independent pharmacies are in a unique position to create personalized services and brand loyalty,” Binita stated.
In addition, Benzer offers a “hub and spoke” specialty pharmacy model for independents. Benzer said it’s currently in process of getting accredited with the Accreditation Commission for Health Care (ACHC) for specialty pharmacy, which will enable any Benzer store at retail to fill specialty medications. All back-end, clinical services and prior authorization work will be done at Benzer’s corporate office.
Binita pointed out that for a nominal monthly fee, an independent pharmacy’s business goals can be met in one step through Benzer’s franchise model.
“Rebranding to Benzer Pharmacy helps you establish brand recognition while still maintaining your integrity as an independent pharmacy. Then you, the pharmacy owner, can focus on patient care and spending quality time with your family,” she stated, adding, “Benzer Pharmacy’s vision is to simply unify the independent pharmacy community.” Binita concludes.
