Franchise Discovery Day

After you have completed your franchise research, reviewed the Franchise Disclosure Document (FDD) and validated with both current and former franchisees, the next and final step in the process is to visit the headquarters of the franchise. This step called Discovery Day and it’s typically the final step in the process before you sign your franchise agreement and pay the franchise fee to get started.

The structure of a discovery day will vary depending on the franchise system. In fact, some franchises will schedule your visit much earlier in the process. Most concepts, however, will have a discovery day at the very end, after you have completed most of your due diligence, as this can make for a more productive visit.

The best way to think about your discovery day is an opportunity to learn more about the system and feel comfortable that it’s right for you. Some franchises schedule them on a regular basis that can include up to 20 other candidates interested in becoming a franchisee. Others prefer a one on one meeting that is less formal and more intimate. In either case, during your discovery day you can expect to:

• Tour franchise headquarters – This is a chance to see the company in action and understand the corporate structure.
• Visit with management and key personnel – Meet the leadership of the franchise and have a better understanding for their long-term vision of the company.
• Meet with current franchisees and visit a location – If you haven’t had a chance to tour a location in operation, your discovery day is a good chance to see first hand what it’s like to operate the business.
• Learn more about the system, products & services – Get a better understanding of the business model, and how products and services are delivered to your location and then to a customer.

Your meetings with management and support personnel are perhaps the most important part of your discovery day. These are the people that will help train and support your business. In addition, you will also have a chance to speak directly with senior management to get a feel for their skills and vision for future growth.

The franchisor will also be looking to determine if you’re a good candidate for the system. In addition, it’s also a way for them to determine how serious a candidate is about buying into their franchise. While some visits can be informal, it’s not uncommon for you to have to go through and interview so the franchise is comfortable that you have what it takes to successfully operate the business.

Discovery day is an opportunity for both you and the franchise to learn about each other and if the franchise system is right for you. While each concept will have a slightly different approach, the concept is the same. All parties want to determine if they can work together and form a long term profitable partnership.

Todd Weiss, CFA
The Franchise Consulting Company
todd@thefranchiseconsultingcompany.com
866 934 7167