So, you’ve decided to take the first steps as an entrepreneur and look for business opportunities for sale! Maybe you’ve sought out franchises for sale and have been invited to a franchise discovery day.
That’s great! But… just what exactly is a franchise discovery day?
For entrepreneurs, this event represents a great opportunity to learn more about a company, ask questions and see if this particular business opportunity is the right fit. Here’s a look at just what a franchise discovery day is and what to expect before, during and after one!
What is a Franchise Discovery Day?
A franchise discovery day is a personal meeting, typically at the corporate office of a franchise business, that involves prospective franchisees and the franchisor. Franchise discovery days have traditionally been the main opportunity for entrepreneurs to learn more information about the franchise company they’re interested in.
So, When Do Candidates Get Invited to a Franchise Discovery Day?
Franchise discovery days are usually one of the last steps before an entrepreneur buys a franchise and are reserved for only the most serious candidates. They typically only occur after a prospective franchisee has applied and is under serious review by the franchise company itself.
Before an entrepreneur attends a franchise discovery day, they should always:
- Know the specific details of the franchise business opportunity they’re interested in
- Have reviewed the Franchise Disclosure Document (FDD) very carefully
- Have a solid grasp of the company’s business model, history and leadership
- Understand what their responsibilities will be as a franchise owner
But What Exactly Happens at a Franchise Discovery Day?
The exact details of what happens at a franchise discovery day vary by company.
Often, franchisors have a well-planned agenda that includes both one-on-one meetings and group presentations. Interviews with current or former franchisees and tours may also be on the agenda. Meetings with high-level staff are also commonplace in most cases, as are casual dinners that allow franchisors and prospective franchisees to learn more about each other on an informal basis.
The key takeaways for an entrepreneur should include a better grasp of the business’ culture, getting to know staff members they could potentially work with, obtaining feedback and getting answers to their questions.
What Questions Should I Ask on Franchise Discovery Day?
Franchise discovery days are a great opportunity to ask questions! Before attending the meeting, be sure to do your homework and carefully review the FDD, research the company and understand the responsibilities as a franchisee.
Some important questions to ask may include:
- What are the company’s long-term expansion plans?
- Is multi-unit ownership encouraged?
- What type of corporate support can franchisees expect?
- How often is the company in contact with its franchisees?
- Are there any commitments such as annual summits or quarterly franchisee/franchisor meetings?
As always, be sure to ask any questions you don’t have the answers to yet but need to know!
What Happens After a Franchise Discovery Day?
After attending the meeting, it’s generally a good idea to take a step back and discuss the details with a legal professional before you pursue any further steps in franchise ownership. Take your time and decide if the business opportunity is right for you!
Discover What Awaits You as an Entrepreneur!
Seeking out business opportunities for sale as an entrepreneur can be very exciting but be sure to do your homework. Make sure to ask questions and learn as much as possible. You’ll be able to better discover what may await you as an entrepreneur!