CASE CSD

CSD Medical Laboratory was opened in 2010. Unlike other laboratories, they started with the most difficult tests – pathological and cytomorphological diagnostics. Later, they opened a molecular genetics department that studies mainly oncological diseases. This difficult path has helped the company build a brand that is highly trusted by both private and public healthcare institutions.

But when pathomorphology became synonymous with CSD in Ukraine, CSD owner Oleksandr Dudin realized that it was time to grow his business.

It was at this crucial stage that Oleksandr Dudin came to us to study at the First Franchise School, where he took four days of offline training and learned about all the benefits of franchise development and real-life cases of building franchise networks from Myroslava Kozachuk and other speakers. During the training, he also had the opportunity to meet the team that would later create a franchise for his business. We immediately had a synergy and a desire to work together because we saw and believed in Oleksandr’s ambitious goals.

Therefore, the dynamic path of development of the medical laboratory network began in 2019 at the First Franchising School. After graduation, his team began the process of preparing the company for scaling.

The owner realized that any independent achievement of certain results would be accompanied by difficulties and mistakes. That is why he contacted our consulting company for help. And in the midst of the first quarantine, the process of creating a franchise began. He understood all the risks of introducing franchising and the benefits of building a network with our experts, because he intended not only to create a franchise, but also, most importantly, to sell it and launch franchisees.

This difference in numbers is due to the capacity of the laboratory office and the number of manipulation rooms that will be needed. The final amount of investment will also be affected by the condition of the premises where you and your partner will open the future laboratory. It must operate in accordance with state building regulations and sanitary and epidemiological rules, so there are specific requirements for floors, ceilings, the number of windows, water supply, and other things.

The Franchise Book was created simultaneously with the financial calculations. The book of standards for working in the network should cover absolutely all issues for the franchisee and his team. Our business process experts spent several months in the CSD office and in medical laboratories to describe each stage, given the quarantine restrictions and the insane demand among customers, it was an asterisked task.

The minimum investment was from $17,000, and the payback period was around 1 year. In the first month and a half of sales, we received dozens of applications that were ready to open immediately. But high-quality scaling requires not only the partner’s desire. CSD trusted our sales department in the selection of future franchisees.

First of all, the partner had to share common values with the owner, as franchise agreements are signed for 3-5 years. During this period, the franchisee becomes a representative of the CSD brand in their city. We had to be sure that the quality of service would not differ at any of the locations.  Therefore, at the lead generation stage, our networking experts filtered out hundreds of candidates, and the Franchisor had already met those who had an entrepreneurial vision, cared about customers and had no hesitation when it came to medical standards. Secondly, he had to support the overall development of the medical laboratory network.