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Procedure_in_acquiring_a_franchise

This Agreement has to be signed between the Franchisor and Franchisee. The Franchisor will grant the Franchisee a franchise on the terms and conditions contained in the agreement. Only once the Franchise Agreement is signed and the Initial fee is paid will the Franchisor proceed to commence with the support service that have been outlined.

Initial Franchise Fees (Once-off)

R200, 000 excluding vat. This fee entitles the Franchisees to use the Sparkport Brand, The Franchisor (Sparkport) will assist with the initial launch of the store by way of marketing and advertising as well as provide the initial support as outlined below.

Monthly Royalty

Based on 3% of turnover with a minimum of R15 000 per month excluding vat. Based on size of the store and location, Franchisor reserves the right to review this formula.

Projected set - up costs

(new Sparkport Pharmacy)

BETWEEN

150 - 350 squre meter

Fixtures , fittings and equipment

500 000

Computers and allied equuipment

150 000

Sub - Total fixtures and fittings

650 000

Initial Franchise fee (once off)

200 000

Initial Stock

500 000

Working Capital provision

200 000

Total investment ( excl . vat)

1 , 550 . 000


Initial Support Service by Sparkport
As soon as the franchise agreement has been signed and the financial arrangements are in place, the following process is set in motion:

a) Operations manual
The franchisee receives a copy of the Sparkport Franchise Operations and Procedures Manual. This manual contains guidelines for the effective and efficient carrying-out of every aspect of operations. Although the manual remains the property of the franchisor, it will remain in the franchisee’s hands for the duration of the franchise agreement.

b) Site selection and set-up
Sparkport’s franchise team will work with the franchisee to find the right site, negotiate a competitive lease, obtain quotes for the necessary works and oversee implementation according to specifications prepared by Sparkport.

c) Feasibility, Budget & Forecast
All expenses will be reflected as a percentage of turnover to ensure viability. Feasibility is based on foot and vehicle traffic, surrounding health Professionals, other complementary businesses and late night trade. Budget and forecast will be put together with projected turnover and expenses with time frames within which profits are generated.

d) Assistance with Licence Application
Guidance will be given in conjunction with needs analysis and layout and design of store to comply with SAPC regulations and requirements.

e) Store Design & Layout
Based on size and shape of store and ensure maximum flow of patients not only to dispensary but also frontshop. Signage, lighting, Isles must exude warmth and welcome to patients with sufficient waiting area and plasma screens.

f) Staff Training

Franchisor will co-ordinate in conjunction with suppliers in-store training programmes for all Franchisees. Where possible, training programmes may be conducted at Head-Office as well.

g) Application for RAMS number for Medical Aids
This is essential in order to process medical aid prescriptions.

h) Assistance with Opening of Accounts ( New Business)
Franchisees with no track record will be guided through the list of creditors and manufacturers, distributors and wholesale in order to open accounts with the best terms.

i) Stock Acquisition & stock mix
The Franchisor’s Wholesale Division (Fransell Pharmaceuticals) will supply stock where possible at competitive prices. Franchisees will be expected to purchase atleast 50% of their monthly stock from Fransell Pharmaceuticals, with payment terms being 30days from statement.

Bulk deals
Stock items are sourced on Franchisee’s behalf by Fransell Pharmaceuticals. Negotiations for front-shop products will ensure competitive pricing at a retail level.

j) Assistance with Merchandising
One of the most critical elements for maximum sales is merchandising. The various departments will be allocated with products allied to dispensary adjacent to it and others merchandised to get maximum sale and visibility in the front shop .

k) Medical Aid Contracts
The Franchisor will assist in negotiation with medical-aids to include Franchisee as part of its network of pharmacies. Designated Service Provider status have been negotiated with several medical-aids.

j) Acquisition of Consumables
Franchisees will be aided in acquiring packets, labels, prescription paper, till slips etc at competitive prices, some of which are branded.

j) Assistance with negotiations for IT and other electronic items, alarm, CCTV, sensormatic, Photo copie, Credit Card Machines, Plasma screen etc.
Our IT department will provide a list of IT and electronic items at cost prices and provide guidance with  contracts that are signed.

j) Checklist on Application for Utilities

Light accounts, telephone etc must be done on the business name & Deposits must be paid.

Ongoing support services

a) Troubleshooting

Sparkport has special arrangements regarding the maintenance of the network’s IT system in place; franchisees participate in these arrangements at their own cost but at preferential rates.

b) Marketing

Ongoing and intensive brand-building efforts are made. Marketing plans will be prepared in conjunction with franchisees and subsequently implemented by head office personnel. Beyond that, and subject to commercial realities, the Sparkport franchise team will lend support to franchisees’ local marketing initiatives.

Franchisees can expect to benefit significantly from the network’s marketing initiatives, for example the publication of the Sparkport Health Times and, once the network is national, campaigns in the national print media and on television.

d) Loyalty Programme

Franchisees will benefit from the Sparkport Loyalty Programme. Here, points are allocated for purchases made in-store. These points can be redeemed for vouchers. Loyalty card can also be used as a profile card

e) Staff Training

Franchisor will co-ordinate in conjunction with suppliers Setas and other expert in-store training programmes for all Franchisees. Where possible, training programmes may be conducted at Head-Office as well.

f) Telephonic Support

The Franchisor is committed to providing telephonic support to its Franchisees.

g) Site visits

Whenever possible site visit will be conducted to ensure adherence to Franchise protocol.  Also on site advice and recommendation will be done periodically.

h) Negotiations with Suppliers

The Franchise, through its whole division will negotiate with suppliers on a regular basis for best possible deals, marketing fees, merchandising of store etc.

i) Meetings

Meetings with Franchisees will be conducted on a regular basis (at least once inevery 3 months). Attendance at such meetings is compulsory.

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