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FRANCHISE FAQ

Franchising today is one of the most common business models which has been adopted by some of the most well-known brands. In the US, more than 65% of the service industry revenue is achieved through 'franchised' outlets. Even in India, it has had significant success with established companies like Archies, Monte Carlo, Mahindra, Lakme etc. A franchisor supports the entrepreneur (the franchisee) with its brand name and also vast industry/business knowledge. As a result, a typical entrepreneur has best of both the worlds, the satisfaction of running his own business and the support of a well-known large organization. Setting up a clinic on a franchisee basis requires entering into an agreement with Apollo Health and Lifestyle Limited (AHLL) as the Franchisor. AHLL will provide the technical know-how and the franchisee will operate the business.
Consistently superior quality of services is the cornerstone to ensuring success of the Clinic. AHLL therefore selects each franchisee with utmost care. A proper due diligence is carried out before finalizing a franchisee. An ideal franchisee will have the following characteristics:
  • He will have a prior track record of running a successful business venture.
  • He should be able to devote full time or a significant amount of his time to the clinic.
  • He will have a social standing, enjoy good reputation and exhibit integrity.
  • He will be genuinely interested in the healthcare sector.
  • He will strictly abide by the guidelines given by AHLL.
  • Individuals looking purely for quick returns or productive utilization of their idle space or building are not necessarily the right candidates and are likely to be discouraged.
    Anyone who is interested in becoming a franchisee can contact the Head - Franchise Business of Apollo Health and Lifestyle Limited directly by telephone at the Corporate Office or e-mail. He can also apply directly through this website or download the franchisee form and send it to postal address. On receiving the required information, the prospective franchisee will be required to fill and submit a detailed Franchise Application Form. A team from AHLL will then meet him and discuss the details of the business and will also assess the franchisee’s ability to run Apollo Clinic.
    If your profile is found suitable and after successful completion of due diligence process you will be required to attend a meeting with our Senior Management at our corporate office in Hyderabad for final selection. Additionally, you could plan to visit some of our operational clinics at various locations in India, to get a first-hand feel of Apollo Clinic.
    Depending upon your conviction about the project and AHLL's assessment about your ability to successfully take it forward, a MOU would be signed between AHLL and your group. At this point, you would need to pay License fee. This would be followed by a Due Diligence conducted by AHLL to assess your financial capabilities. You would also need to form a Private Limited company to establish and operate 'Apollo Clinic'. Once this process has been completed, AHLL will sign a License agreement with your company to officially nominate you as a Franchisee for 'Apollo Clinic'
    Wrong. The most important ingredient for success is the franchisee himself. His managerial ability, interest in healthcare and extent of personal involvement in the business determines the success of 'Apollo Clinic'. Which is why, as in all franchise businesses, we have extraordinary performers, average performers and non-performers.
    The time taken from signing the Agreement to commencing operations depends to a large extent on a few critical factors like, the selection of a suitable site, tying up the finances and completing licensing requirements. Also, the time required for constructing ground up clinics is typically longer than that required for establishing clinics in existing buildings. We have in the past opened a Clinic within sixty days from commencing work. If there are no major issues, it is easily possible to commence operations within a time frame of 8-10 months from the date of agreement.
    You can decide to partner with anyone else for taking the Clinic franchisee. However, AHLL will assess each person individually before signing the agreement. It is also to be noted that the Franchisee Agreement is signed with a limited liability company only. Change in partners/shareholders after the signing of the agreement is restricted by the terms of the agreement.
    The Clinic will require an area of about 4,000 sqft at ground floor level and should preferably be close to a large residential area. The area will vary according to the number of specializations being planned. It is envisaged that the Clinic will be on leased/rented premises. However, franchisees may also consider constructing a separate building, or purchasing existing buildings.
    You can feel the difference between Apollo Clinic and other similar establishments right from the moment you enter the clinic. The ambience is designed to provide an experience which is most comforting to the customers. Our clinical as well as non-clinical procedures have been developed after research by a team of specialists from within the Apollo Hospitals Group. Consultants are selected for the Clinic after being interviewed by a panel of doctors from the Apollo Group. In addition to all of this, Apollo Clinic can enhance its business through referral arrangements with Apollo Hospitals throughout the country.
    Given below is an indicative description of the medical equipment in the Clinic: Laboratory: Bio Chemistry (auto analyzer), Hematology (Cell counter) and Microbiology Radiology: X-ray, Ultrasound Cardiology: ECG, Colour Doppler and Treadmill Pulmonology: Spirometry Dentistry In addition, the Clinic has a Treatment Room which provides simple services like dressing, suturing etc. It is however not equipped to provide any emergency services.
    The 'base' model of the Clinic does not contain any high-end equipment. However, depending on the local need-supply gap and the availability of adequate space, we have included other facilities in a number of Apollo clinics. Some of the equipment or services that can be considered include CT Scan, Endoscopy Services and etc.
    The Clinic also offers tele-medicine facilities. These are for use not only by the consultants practicing in the Clinic, but also by other physicians as well. While its acceptance is likely to be gradual, we expect such a facility to give the Clinic a competitive edge. Apollo Clinic also provides interface with other Apollo Hospital group entities to enhance resource utilization. The Clinic also offers a number of health check packages. In addition, a number of camps have been developed for implementation at the Clinic, with well established protocols along with Hospital Information Centre.
    Telemedicine provides the Clinic access to specialists and super-specialists who are located at different parts of the world. This is done using audio-visual devices that connect consultants in one facility (in this case the Clinic) with specialists and super-specialists in another facility. Doctors and customers in the Clinic have the option of consulting these specialists and super-specialists online without incurring the cost of travel, and within a short span of time. The end result is an expert opinion from a specialist with much less cost. The Clinic benefits by providing additional value-added services to its customers at minimal costs. Currently, the network is extended to consultation with Apollo facilities at Delhi, Chennai, Hyderabad, Kolkata and Ahmedabad.

    The relationship between Apollo Health and Lifestyle Limited and the franchisee is modeled on best international franchising systems. As the franchisor, AHLL will provide all support for setting up and later running the Clinic.

    The overall scale of operations will ensure that the franchisee enjoys excellent cost competitiveness - both during implementation stage and later during operations.


    Given below is a brief description of AHLL's support services to be provided to be franchisee:

    Site selection Do's & Dont's This is first step of project development, and is the most crucial element of Clinic setup and utmost care should be exercised in choosing the right place for the Clinic. A set of Do's and Don'ts to be kept in mind while looking for a suitable site for the Clinic

    Architecture & Interior Design AHLL has developed a comprehensive manual incorporating all possible design features to take care of all types of sites (of any size, shape, location, etc).However Based on the manual, AHLL's in-house design team prepares the layout plan for each Clinic.

    Project Execution including Appointment of Contractor Standardized construction (flooring)/ engineering (air conditioning, electrical, sanitary fixtures etc) materials are negotiated with leading suppliers/ manufacturers to get the most competitive pricing.

    Project Financing Based on a study of the local need-supply scenario, AHLL will assist in preparing a Project Report and also assist the franchisee in mobilizing financial resources (in the form of debt), where specifically requested by the franchisee.

    Selection and Procurement of Medical Equipment The franchisee is provided with the list of recommended medical equipment from AHLL. These equipment have been selected after exhaustive negotiations with leading suppliers and have the best configuration and prices. The franchisee need not reinvent the procurement process. The equipment package includes adequate warranty and after sales service features.

    Selection and Training of Personnel AHLL has a highly structured system for selection and training of medical, para-medical and other administrative/support personnel in a Clinic. AHLL is also directly involved in Screening of key positions in the Clinic, and a panel from Apollo Hospitals is involved in conducting interviews for all key positions in the Clinic. A 10 day training session is conducted by the Apollo team, for the administrative and technical staff at the Clinic. Refresher training and upgrades are provided to the employees on a periodic basis.

    Clinic Management Software AHLL has an exclusive basis, Clinic Management Software. This comprehensive software address all medical and non-medical functions of the Clinic. The software is implemented by AHLL/IT partners , and the Clinic staff will also be trained by AHLL/IT partners .

    Local sales support AHLL's marketing executives will train the franchisee's sales personnel in sales and promotion of the Clinic. They are actively involved in developing product and pricing strategy and also the pre-launch activities.

    On-going Service Quality Training & Monitoring AHLL will carry out periodic medical and service quality audits of the Clinic function, which help in maintaining and improving service quality standards of the Clinic. This includes regular clinical and non-clinical audits, developing standard operating procedures and checklists, and assistance in implementing service quality. AHLL also sets and monitors monthly revenue targets for the clinics.

    The Clinic will derive its income broadly from the following services: Consultation including counseling services Diagnostic Services Preventive Health Check Programs Dental Services Treatment room Others (Telemedicine, doctor @home, referrals etc) The Clinic is expected to generate revenue through all of the above sources. It is also expected that there will be a large degree of cross-referrals between various revenue generating streams. In the first year of operation, the Clinic in India can expect to generate between Rs. 15 million to Rs. 20 million, depending upon the facilities that are provided.
    AHLL charges an 'Initial License Fee' at the time of signing the Agreement . This license is valid for a period of Five (5) years, which is the tenure of the License Agreement. As royalty fee, AHLL will charge a percentage of the gross turnover of the clinic , which will be payable on a monthly basis. * Initial License Fee and Operating License Fee may be revised at AHLL's discretion
    Since the chain of Apollo Clinic is being set up on a franchise basis, the franchisee will be responsible for the entire investment. Where requested, AHLL will assist the franchisee in arranging term loan from a bank. However, neither AHEL nor AHLL will not make any investment in the clinic. It will also not give any guarantee to the lender.
    While every Apollo Clinic will be an independent entity, both the entities will benefit from the common brand building and similar exercises. Also, the Clinic can benefit from being able to refer customers for high end diagnostics as well as tertiary or in-patient care to the Apollo Hospitals. At the same time, the Clinic will gain from referral income while retaining the customer. The goodwill of all these facilities shall automatically come to you through Apollo brand name. Specific association with any or all of these entities, shall be based on local market conditions and business needs.
    Apollo Clinic shall focus on primary healthcare. We do not perceive any competition from the existing Apollo facilities which are mostly secondary and tertiary care facilities. Secondly, no two Apollo facilities would be operating in the same territory as any other Apollo facility. In fact, such facilities would create synergy in terms of referrals.
    Every clinic will be called "Apollo Clinic". No deviations are allowed. The name and signage has been standardized and no deviation, beyond AHLL's stated guidelines, will be permissible.
    Currently our focus is on primary healthcare as it is an area with tremendous unexplored and unutilized potential. The growth of clinics is envisaged in terms of geographical expansion or/ and sub-franchising as also through introduction of additional facilities like CT Scan, dentistry etc. However, we cannot rule out the possibility of setting up hospitals at a later stage with the Apollo Group.
    The Clinic will have a Consultant General Medicine, Pediatrician, Gynecologist and a Cardiologist. These physicians will form the core team, but besides the Consultant General Medicine, all other specialty doctor will not normally be on the full time rolls of the Clinic. Apart from them, the Clinic will have a group of visiting consultants from various disciplines like General Surgery, Orthopedics, Endocrinology, Urology etc. The Clinic will also have a Radiologist and a Pathologist on its full time roll. The hours of employment may however be decided based on the local conditions. The Consultant General Medicine will take care of the preventive Health Checks programs too. All other doctors will be consultants.
    The method of employment of doctors would vary from city to city. AHLL will assess the financial implications on the business and recommend full time employment, revenue sharing based association or any other method that is considered appropriate. Good technical staff is adequately available in the market. AHLL shall help in recruiting such all key staff by designing advertisements, conducting interviews, and short listing.
    The professional manager should preferably be an MHA with excellent managerial skills, marketing acumen and a flair for customer relationship management. He would have about 7-8 years of work experience, preferably in a primary healthcare facility. Doctors in administration may also fit the profile.
    Typically staffing requirements in India vary between 20 to 25. Actual staffing could vary depending on a number of variables including the number of facilities set up and the number of floors occupied by the Clinic. In the international context, the number of staff will need to be determined on a case by case basis.
    We would like to allocate a Franchise only for one clinic in the beginning. Based on the business performance and customer feedback, we would consider allocating licenses for more clinics.
    AHLL has prioritized certain cities based on Market Surveys conducted for the establishment of new clinics. Some of these cities are being considered for implementation in the first phase itself. Other cities shall be covered in the second and third phase. We foresee completion of all three phases in the next 2 years itself. For information regarding specific locations, please contact our corporate office.
    Preventive health-checks are checks performed on individuals to determine the stat of their health by carrying out a series of diagnostic tests. Preventive healthcare is catching up in bigger towns and cities. There is already a lot of corporate business in this area. We intend to popularize the maxim of "Prevention is better than cure" through our marketing programs. Very soon, with the entry of private insurance companies, preventive health checks will become a norm. Insurance companies would certainly prefer paying for pre-insurance health checks than settling large hospitalization bills. Secondly, while allotting an insurance policy to anybody, insurance companies would rather have an institution like Apollo certifying the health of a prospective customer as against an individual.
    Contact details are as follows: Mr. Tarun Gulati Email: tarun.gulati@apollohl.com Ph: 09000217260

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