GSMFEL, as the franchisor, generated revenue through the sales of inexpensive, high-quality drugs to franchisees. GSMFEL delivered these products directly to franchisees' doorsteps, and also provides them with valuable health and business training, and branded materials.
CareShop unified and standardized the fractured LCS sector in Ghana through franchising. Individual franchisees operated for-profit chemical shops and were contractually bound by clearly defined and strict regulations on diagnosis, quality, and pricing of a specific list of drugs. When properly functioning, the CareShop franchise could provide incentives for chemical sellers to comply with government and franchise regulations because it would be more profitable to do so. CareShop currently consisted of 276 franchised chemical shops.
"CareShops Ghana struggled and ultimately collapsed due to an inability of the franchise to maintain franchise discipline and difficulties in encouraging franchisees to transform their business practices. The franchise struggled to maintain a balance between its franchisees’ demands and its own financial needs for sustainability. The pharmacists interviewed for this study that had been CareShop franchises complained that the model did not quite fit the local market needs as prices were too high, they did not offer sufficient stock or a desirable product mix and that the delivery service did not allow them to go to Accra to pick up stock, which they enjoyed. The initiative however, did provide valuable training in records keeping and business training, which they still use." -- From McCab, A. (2009) Private Sector Pharmaceutical Supply and Distribution Chains - Ghana, Mali and Malawi
Authors Joel Sergre and Julia Tran should be contacted through the World Resources Institute.