Updated July 2024
A franchise discovery day is an in-person meet-and-greet with representatives from a franchise concept that you’re considering. It’s typically reserved for serious inquiries, not those looking for a free trip with extravagant dining. At the same time, it can be an informal and enjoyable experience. Ultimately, it’s a chance for the prospective franchisee and representatives from the franchise brand to determine whether or not they’re a good fit for each other.
The Importance of Discovery Day in the Franchising Process
There are several reasons that discovery day is an essential part of the decision-making process for a potential franchisee.
#1 – Comprehensive Evaluation of the Franchise
Discovery day allows prospective franchisees to gain a thorough understanding of the franchise’s business model including the operational process, marketing strategies, and support systems. Furthermore, the potential franchisee will receive detailed financial information such as initial investment costs, ongoing fees, and expected return on investment.
#2 – First-Hand Experience
It’s hard to beat first-hand experience when it comes to making a life-changing decision. On discovery day, potential franchisees get a first-hand look at daily operations, helping them to visualize running their own franchise business. Additionally, having the opportunity to engage with the franchisor team and current franchisees ensures that everyone aligns with the franchisor’s vision and mission.
#3 – Building Relationships
Building a strong relationship with the franchisor’s leadership team, as well as forming connections with existing franchisees, provides valuable support and advice to prospective franchisees. Discovery day facilitates these connections, which is a significant factor in the decision-making process for a potential franchisee.
#4 – Clarification & Transparency
Discovery day also gives potential franchisees the opportunity to ask specific and clarifying questions about the franchise agreement, operational support, financial commitments, and more. This will also include detailed discussions on legal obligations and compliance requirements to ensure prospective franchisees understand their rights and responsibilities.
#5 – Decision-Making Confidence
In order to achieve long-term success, it’s important for potential franchisees to choose a franchise that fits their personal and professional goals as well as their financial capacity. Discovery day allows them to gather comprehensive information and thoroughly evaluate the franchise in order to make a well-informed decision about how to proceed.
Agenda for a Franchise Discovery Day
Welcome & Introductions
A sit-down dinner usually starts off the “discovery day” event, and it gives attendees the opportunity to have many “get to know you” conversations with the franchisor team and other potential franchisees. Discovery day is a time for prospective franchisees to evaluate the franchise, but it’s also a time for the franchise to assess whether or not those individuals are a good fit for the franchise. Therefore, everyone should plan to follow the decorum set at any company-related function
Typical Activities for Discovery Day
#1 – Presentations & Discussions
One of the activities of discovery day includes a meeting at the franchise’s corporate headquarters. This will probably include a tour and personal introductions to the corporate representatives who make the franchise thrive on a national basis. Additionally, potential franchisees will likely be shown an instructional presentation highlighting the main selling points of the franchise as well as its history, mission, and vision.
#2 – Operations Review
During this time, prospective franchisees will be given a comprehensive understanding of the franchise’s day-to-day operations, processes, and procedures. This could include workflow demonstrations, an overview of support systems, a presentation of reporting tools and dashboards, an introduction to systems for tracking and managing inventory, information on training opportunities, and more. This sets realistic expectations and equips potential franchisees with the knowledge needed to run the business efficiently and effectively.
#3 – Site Visits
Potential franchisees will also be able to tour an existing franchise location to see the operations in action. This is a great opportunity to observe and learn. They’ll be able to see the machinations of the business up close and imagine themselves behind the counter, in the office, or with the customers. They’ll also be free to visit with the existing franchise owner and ask questions with the franchise representatives.
#4 – Q&A Sessions
During discovery day, the franchise will also allocate time for a Q&A forum. This is an important time for potential franchisees to have interactive discussions that address specific concerns and clarify doubts.
End of Discovery Day
After your visit and meeting, discovery day comes to a close. You’ll likely dine again, then head to the airport for your return trip back home. It’s at this stage in which both the franchisor and franchisee can have a frank, honest and open discussion about whether or not they’ll be a good fit for one another. As a prospective franchisee, you’ll be asked for your thoughts on the discovery day activities and whether or not you intend to proceed in the investigative process.
What to Do After Discovery Day
While there isn’t an obligation to join a franchise after discovery day, it is a decision to take seriously. The franchisor only invites prospective franchisees to attend once they’ve reached a critical stage in the investigative process.
A few questions to ask yourself after attending a discovery day include:
- Do I like these people?
- Was I impressed with the franchise operation on the ground?
- Can I truly count on their support if I decide to buy into their system?
Additional reading: Tips for Your Discovery Day
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