If you’ve been in the franchise world for a while, you’ve probably heard of a franchise discovery day. A franchise discovery day is an in-depth experience designed to help franchises and franchisors learn more about franchise and investment opportunities.
Rick Mayo, Alloy Founder & CEO shares the ins and outs of franchise discovery days, and their benefits for everyone in the franchise world.
The Franchise Discovery Day Experience
The structure of franchise discovery days vary from franchise to franchise. As a general rule, though, they’re an informal meeting held throughout the course of an afternoon or a single morning.
Unlike other marketing opportunities, franchise discovery days are not meant to allow franchisors to present an in-depth sales pitch or discuss the exact particulars of investment. Instead, they’re designed to determine cultural fit between franchisors and franchisees. Discovery days typically allow interested would-be franchisees to bring along friends or family members to experience the franchise opportunity, as well, and to offer a second opinion.
Don’t let the informal nature of these days fool you, though—discovery days are well-structured and designed to allow would-be franchisees to get as much value as possible from their trips.
General Components Of Discovery Day
The day-to-day itineraries vary from business to business but generally include some standard components.
- Franchisees get to visit the company headquarters or as we call it at Alloy – the “mothership”.
- Franchisors provide in-depth information designed to help would-be franchisees decide whether the franchise opportunity is right for them, and whether they’d like to invest. In some cases, franchisors will make presentations about the financial obligations and brand strategy associated with a franchise opportunity.
- The franchisor may provide franchisees with a franchise disclosure document (FDD), which provides details about the business model and key considerations associated with a franchise opportunity.
- Franchisors will have an opportunity to assess the fit and suitability of any would-be investor in the business.
Discovery days are beneficial for both franchisor and franchisees. Here’s a breakdown of how they function for each group:
The Importance Of Discovery For Franchisees
Discovery days are similar to career fairs for franchisees. On a discovery day, franchisees can explore new franchise opportunities, tour the headquarters of a franchise operation, meet the team and the head office, and learn about the steps involved with investing in a franchise unit.
While most franchises offer plenty of information and support for people interested in opening a branch, there’s no experience quite like a discovery day to give would-be franchise owners a taste of what the business would truly be like.
The Importance Of A Discovery For Franchisors
Franchisors, on the other hand, can use discovery days to attract new investors and spread the word about their brand. Discovery days also provide an important opportunity for franchisors and franchisees to connect and ensure a mutually suitable partnership down the road.
A discovery day offers an unparalleled opportunity for franchisors to help people interested in starting a franchise learn about joining the brand and what the investment opportunity would entail.
When Should You Attend Discovery Day?
There’s no one-size-fits-all rule for when to attend a franchise discovery day.
Some people believe that the best time for would-be franchisees to attend a discovery day is once they’ve already done the lion’s share of their research, and are reasonably certain they’ve found the franchise they want to invest in. This late-stage evaluation on the part of franchisees allows interested parties to weed out franchises that wouldn’t be a good fit, and to solidify a decision after months of research.
Others suggest that the best way for franchisees to identify possible opportunities is to attend a discovery day early in the discovery and research process. This is a good way to weed out companies that are not a good cultural fit, or to identify a team and headquarters a franchisee wants to be involved in.
Ultimately, the timing depends on the franchisor’s ultimate goal: to attract as many would-be investors as possible, or to attract only the most qualified and vetted investors.
The Aftermath Of A Successful Discovery Day
Once the franchise discovery day is over, both franchisors and franchisees should feel well-informed and well acquainted.
Franchisors, for their part, should understand whether a would-be candidate is likely to be a good fit for a business. If so, the franchisees should get back in touch with the franchisor as quickly as possible to commit to the investment opportunity.
If the fit is not there, both franchisors and franchisees should move on as quickly as possible, in pursuit of a better opportunity.
Why Discovery Day Is An Excellent Opportunity For Your Business
Whether you’re a franchisor or a franchisee, holding or attending a franchise discovery day is an excellent way to gain information and make connections. For franchisors, discovery days are an excellent way to identify would-be investors with the potential to build and expand a brand. It’s also a great way to give franchisees an inside peek into the company, the operations, and the staff.
For franchisees, on the other hand, discovery days are a great way to gain real-world exposure into the structure and function of a franchisee, and to ensure that investing in that business represents a good opportunity, and a proper fit.
Here at Alloy, we love franchise discovery days as a tool for both our franchisors and franchisees. To learn more about Alloy or operating an Alloy franchise as a franchisee, contact us today to learn more.
– – -> Learn more at – – > Alloy
Be sure to follow us on YouTube Alloy Personal Training