MedPlus Franchise Cost in India: Model, ROI, Eligibility & How to Apply

MedPlus, founded in 2006 and headquartered in Hyderabad, is India’s second-largest pharmacy retailer with over 4,230 stores across 600+ cities as of 2024. Its robust franchise model allows entrepreneurs to partner in expanding essential retail healthcare infrastructure across key states like Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, and beyond.

💰 Investment Breakdown

Franchise investment varies by location, size, and condition of premises. Here’s a detailed cost breakdown:

Expense Category	Estimated Cost (INR)
Total Investment	₹17.5–23 Lakh
– Franchise Fee	₹2–3 Lakh
– Security Deposit (rent)	₹1 Lakh refundable
– Store Setup & Interiors	₹5–6 Lakh
– Equipment & Technology	₹3–5 Lakh
– Initial Inventory	₹3–8 Lakh
– Working Capital	₹2 Lakh
– Miscellaneous (licenses, etc.)	₹2–5 Lakh

Space Requirement:

• Minimum of 300–500 sq ft in high-footfall commercial areas.
• MedPlus also ties up with State Bank of India to offer loans covering up to 60–70% of costs, requiring ₹6–7 Lakh in franchisee equity plus collateral.

🔁 Franchise Model & Fees

MedPlus offers two franchise models:

FOFO (Franchise-Owned, Franchise-Operated)

• Franchisee owns the outlet, manages operations.
• Franchise fee ~₹2–3 Lakh; royalty ~6% of monthly sales .
• Contract duration: 5 years.

COFO (Company-Owned, Franchise-Operated)

• Brand owns the store; franchisee handles daily operations.
• Details vary case-by-case (less common)
• MedPlus also retains ~10% revenue share (~royalty), letting the franchisee retain ~90%, per some sources .

📈 ROI & Profitability

Profit projections generally show:

• Profit Margin: 8–20% net on sales.
• Annual Margin (some reports): Up to 35–45% per year .
• Monthly Earnings: Approx ₹25,000–50,000.
• Break-even Period: Typically within 6–18 months .
• ROI Timeline: Initial investment recovery within 1 year; further profit accumulation across remaining tenure.

Reddit data notes overall chain margins ~17%, and for individual franchises, ~20% .

✅ Eligibility & Requirements

Key criteria include:

• Age & Education: >21 years; SSC/Intermediate minimum; pharmacist qualification helpful but not required.
• Experience: Managing business or retail pharma preferred .
• Financial Capacity: Personal equity of ₹6–7 Lakh; access to collateral & loans .
• Premises: 300–500 sq ft with good frontage in towns >50k population.
• Staffing & Compliance: Willingness to manage operations personally; obtain GST, drug license, shop license.

🛠 Brand Support & Onboarding

MedPlus offers extensive support:

• Site Selection & Design: Guidance on location, interiors, layout.
• Training: Operations, POS usage, customer service and inventory controls.
• Bank Tie-up: Injury facilitation of loans via SBI.
• Inventory & Supply: Regular filtered product supply and stock support .
• Technical & Audit Support: POS systems, audits, software assistance .

⚖️ Pros & Cons

✅ Advantages:

• Trusted national brand with established customer base.
• Tech-enabled operations ensure efficiency.
• Financial support via structured bank tie-ups.
• Franchisee retains high revenue share.
• Low initial risks with quick ROIs.

⚠️ Challenges:

• Profit margins moderate in competitive retail space.
• Requires full-time operational commitment.
• Dependency on consistent footfall and staffing quality.
• Some customer privacy concerns—e.g., mobile number mandatory, per Reddit.

🔄 Application Steps

• Initial Inquiry: Register interest via official website or contact state franchise coordinator .
• Preliminary Screen: Assessment of credentials, finance, and location.
• Site & Feasibility Visit: MedPlus team inspects premises.
• Submit Documents: Aadhar/PAN, GST, rent agreement, business statements.
• Agreement & Payment: Sign franchise contract, remit fees and deposit.
• Setup & Staff Hiring: Fit-out, tech installation, staff training.
• Inventory Stocking: Order initial supply.
• Soft Launch: Begin operations; followed by official launch.
• Ongoing Support: Regular visits, audits, stock replenishment, marketing support.

📊 Summary Table

Aspect	Details
Investment	₹17.5–23 Lakh
Space	300–500 sq ft
Franchise Fee	₹2–3 Lakh
Royalty	~6% of monthly sales
Revenue Share	~90% to franchisee
Net Margin	8–20%; chain around 17%
ROI Timeline	1–2 years
Break-even	6–18 months
Contract Duration	5 years, renewable

💡 Reddit Feedback on Customer Experience

“MedPlus … profit is 20%… cost of procurement is high… chain profit margin ~17 percent”
“MedPlus pharmacy near my home … refused to sell medicine without providing a mobile number”—a privacy and system issue

🧭 Final Verdict

The MedPlus franchise is a compelling proposition in the pharmacy and healthcare retail space—with moderate investment (~₹18–23 L), strong bank support, and fast payback potential. It demands full-time engagement, dependable location, and adherence to standards. But with a trusted brand and tech-enabled retail backbone, it offers a compelling mix of stability, growth, and profitability for entrepreneurs.