Discovery Day

Why are franchise discovery days important?

After numerous formalities have been completed on paper, the purpose of the discovery day is to give both sides an opportunity to discuss the franchise offering in more detail and to become better acquainted with each other. 

This is important because both franchisor and franchisee will be entering into a medium- to long-term business relationship and their interests, goals and even talents, skills and personal characteristics should be aligned to make the business opportunity a success. 

A further reason why a franchise discovery day is important is that it allows both parties to discuss future roles and responsibilities, the business model and what the overall opportunity entails on a more practical, daily operations level. Its utility is vital in shortening the “closure” process of selling/purchasing a franchise.

Who are franchise discovery days designed for?

Franchisors host a franchise discovery day for prospective franchisees. These are individuals who have already done research and want to deepen their due diligence process further. They have some form of capital requirements and have expressed an interest in the franchise. However, they have unanswered questions that a franchisor can help with.

On the other hand, franchisors use the opportunity of a discovery day to suss out prospective candidates and determine whether they would be a suitable, long-term fit.

As a result, franchise discovery days are designed by franchisors for both franchisors and franchisees.

What happens during a franchise discovery day?

A prospective franchisee will want to know what to expect at a discovery day for a franchise. Discovery day usually takes place at the franchisor’s headquarters, which might include a tour through various departments and meeting the franchise’s specialists you will be closely working with. It can also be considered a “sales day” by the franchisor because after deciding that a franchisee is a good fit, they will want to onboard them and sign on the dotted line shortly after the formalities have been taken care of.

How should you prepare for a discovery day?

Going to a franchise discovery day requires prior preparation. Although you’ll find out more about the franchise during the day itself, it’s important to be as prepared as possible beforehand. Here are some recommendations on how to prepare for a discovery day:

1. Dress appropriately. Remember that this is a formal business meeting and dressing accordingly is a requirement.
2. Consider packing lightly. Irrespective of where the franchisor’s headquarters may be, you’ll only be there for a day so there’s no need to bring half of your closet with you.
3. Stick to the main information being presented and do not veer off topic by discussing irrelevant or controversial topics. That’s not to say that you can’t or shouldn’t ask questions. In fact, you are highly encouraged to do so. This will be the case whenever you meet a new team member or you’re presented with new pieces of information.
4. Express your gratitude to your host and their team for hosting you. Remember that people and their time have been set aside, especially for you and showing some appreciation will be valued.

What questions should you ask on discovery day?

Despite having already been provided with a great deal of information about the franchise opportunity, you should prepare a list of questions to ask at the franchise discovery day. These include but are not limited to the following:

• Have any franchisees left the system and if so, why?
• What are your long-term goals and plans?
• What are the possibilities for opening units at multiple locations?
• How many complaints do you receive and how are they resolved?
• Have you terminated any franchisees in the past and what was the reason for this termination?
• What type of support can I expect?
• What levels of profitability are anticipated for fresh franchisees?/How quickly can I break even?
• How would you describe your relationship with current franchisees?
• What sets you apart from the competition?
• Is financing offered to prospective franchisees?
• Will I be conducting business in an exclusively protected geographical area?