What Is Franchise Discovery Day? A Guide For Prospective Franchisees

If you’ve explored the notion of franchise ownership, you’ve likely heard of franchise discovery day. But what is franchise discovery day (and why is it important?)? Well, franchise discovery day is a structured, often in-person or virtual event where prospective franchise owners can meet the franchisor’s leadership team, dive deeper into the business model and, most importantly, ask questions (prior to making a financial investment).

“It’s for the candidate to make a better-informed decision,” says STORsquare Portable Storage Head of Franchise Development, Doni Ferreira. “Not something you should take lightly.”

Why Discovery Day Matters

Discovery day is more than just a formal meeting. It’s an opportunity to evaluate the franchisor and get a firsthand account of their operational approach. Ultimately, discovery day provides an opportunity to confirm whether the franchise opportunity is properly aligned with your general franchising and financial goals. Candidates can take part in one-on-one calls with current franchise owners as well as franchisor leaders, which helps develop a better idea of the general challenges involved.

Key Takeaways For Prospective Franchisees

1. Prepare Early – Review the Franchise Disclosure Document (FDD) carefully. A full FDD review call with the franchisor can help provide answers to specific operational or financial questions.
    
2. Ask About Item 19 – Item 19 of the FDD reports historical financial performance. If the franchisor provides it, a proper understanding is critical. “Not having an Item 19 is a motive for questioning. You want to ask the franchisor why they have not provided this information,” Ferreira. “Because that could be the biggest red flag.”
    
3. Engage With Leadership – One-on-one conversations with the CEO or other executives don’t necessarily happen every day. So, it’s important to take full advantage of an opportunity which can help potential franchise owners examine franchisor transparency and support.
    
4. Talk To Current Franchisees – Speaking with current franchisees gives insight into daily operations, challenges and support levels. (Finding former franchise owners to speak with can fill in the blanks)
    
5. Self-Schedule When Possible – Some franchisors allow candidates to schedule discovery calls and meetings in advance, delivering a personalized experience that’s predicated upon direct, honest, meaningful engagement.

Making An Informed Decision

Franchise discovery day is a critical step in the evaluation of any entrepreneurial opportunity. It helps potential franchise owners gather firsthand insights, ask tough questions and gauge the franchisor’s level of commitment and support. 

By taking a proactive, informed approach to discovery day, zees can assess franchise opportunities with confidence. Adequate preparation can provide forward momentum with clarity, ultimately minimizing risk while improving the odds of long-term success in franchise ownership.

Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our Power Rankings to read more on brands making moves.