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Discovery Days are exceptionally valuable opportunities for prospective franchisees. They are offered by the franchise company, usually at their headquarters, to provide direct interaction with franchise executives and internal operations. It is a singular opportunity to ask direct questions and get an in-person “feel” for the franchise organization, founders, and management. Make good use of your time and use your Discover Day to decide your next steps.
First, you must receive an invitation. This occurs when you’ve taken preliminary steps toward franchise business ownership and have impressed the franchise. They have seen your skills, experience, and financial abilities. In some instances, you’ve already reviewed a sample franchise agreement, met with other owners, and had multiple conversations with their regional representative parsing through credit, schedules, and possible sites.
If the franchise thinks you are a good match for their business model, Discovery Day takes it further. The relationship gets a bit more serious as they woo you (along with other prospects) into a franchisee.
Only the best candidates are invited, and the franchise will spit-shine its presentation to impress you. The company will likely provide tours, seminars, and opportunities to speak with other top-notch franchisees.
However, no matter how slick it appears, Discovery Day is the time to get answers to serious questions if you are seriously considering a franchise purchase.
Delve into the Past
Franchisors present a story about their business idea and model. They attribute their success to their unique product, service, branding, and expertise. But if you are likely to buy into that story, it is important to uncover any less-than-perfect chapters.
- What has gone wrong? There is always an answer to this question that is real. A miracle business success without any issues is not a sincere answer.
- What would they have done differently? Given a do-over, any good partner will admit mistakes and want to rectify them. An answer here shows hubris or humility, so listen carefully.
- Has the franchise ever terminated any franchisees? Why? There are good reasons to terminate franchises, but you should be aware of past issues. If there is a consistent reason, perhaps there is an operational flaw with the franchisor. Dig deeper for details on causes and what options were employed to keep the franchisee in business.
- How would the franchisor support your expansion? If you are interested in growing into multiple units, this is a good time to discover how they have engaged in that process before.
- Dissect the franchise agreement. You’ve had dozens of conversations and annotated the contract in depth. If your franchise contact has not answered questions thoroughly (or if you want to hear the answer from the horse’s mouth), ask the management team.
Look to the Future
A franchisor invites you to a Discovery Day because they are likely willing to move forward with you as one of their franchise business owners.
The event is a final opportunity for both sides to reconsider how suitable a match could be. If things make sense for you and the franchisor, you will receive a contract to sign very soon—sometimes before you leave.
Your Discovery Day experience will be fun and fast, but a contract offer also means that you have a final decision to make. Take the time you need, of course, before the next furious steps toward your inaugural day.
Buying a franchise is a big decision. Discovery Days help you make the right one.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.