Decoding Discovery Day: Insights for Aspiring Franchisees

If you're considering owning a franchise, you may have heard the term f Discovery Day, or Confirmation Day - a pivotal event where potential franchisees meet franchisors face to face before mutually deciding whether or not to partner together.

Discovery Day is typically one of the final steps in the due diligence process, and the Franchisor has to extend an invitation in order to attend.? If you’re considering attending a Discovery Day for a franchise brand, you’re likely deep into the due diligence with that brand, and getting pretty serious about moving forward as a Franchisee.??

Discovery Day is a crucial component of evaluating a franchise to determine if it’s a good fit for you.? But, just like the entire due diligence process, it’s a two way street.? The Franchisor is using Discovery Day to get to know you better, and determine for themselves if they’d like to “award” you the opportunity to become a Franchisee.?

In this article, we'll delve into the nitty-gritty of Discovery Day, covering everything from the importance of initial research to the social dynamics you'll encounter.?

So, whether you're a first-time business owner or a seasoned entrepreneur looking to expand your portfolio, read on. This guide will equip you with the knowledge and insights to make your Discovery Day successful.

The Importance of Research and Discovery

Embarking on a franchising journey is not a decision to be taken lightly. It starts with the crucial step of researching various franchise companies to understand their business models, culture, and what they look for in potential franchisees. This initial research lays the foundation for the rest of your franchising experience.

While choosing a franchise based solely on brand recognition or profitability may be tempting, it's essential to remember that the best franchise for one person may not be the best for another. Your skills, interests, and lifestyle should align with the franchise's requirements and culture. Therefore, adopting a personalized approach to choosing a franchise is not just advisable but imperative.

The Validation Process

The next step is validation once you've conducted your initial research and narrowed down your choices. This involves speaking with existing franchisees to gain firsthand insights into the franchise's operations, culture, and profitability. These conversations are invaluable, as they provide a realistic picture of life as a franchisee.

But validation is not just about asking questions but building relationships. In my journey, I've found that some of the people I met during Discovery Day went on to become franchisees and even good friends. These relationships can go on to become mutually beneficial, especially when you find yourself on a similar timeline - perhaps going through training together or opening your businesses around the same time.

Here are some tips on what questions to ask and what insights to gain during the validation process:

Financial Performance: Ask about the franchise's profitability and revenue streams.?

Operational Challenges: Inquire about operational difficulties and how the franchisor supports overcoming them.

Cultural Fit: Discuss the franchise's culture to see if it aligns with your values and work style.

Training and Support: Find out what kind of training and ongoing support the franchisor offers.

By the end of the validation process, you should have a well-rounded understanding of the franchise, confirming whether it fits you.?

The Validation phase of the research typically comes after you’ve spent some time meeting with the Franchisor and learning from them. So, think of validating with existing franchisees as a way to confirm what you’ve learned from the Franchisor, and to fill in some of the gaps that the Franchisor is not able to answer directly (primarily earning potential, as the Franchisor legally cannot make earning claims).?

Preparing for Discovery Day

As you approach Discovery Day, preparation is vital. This is your opportunity to meet the franchisor in person, see firsthand, much of what you’ve learned about throughout your research, get a better feel for the culture and whether or not it’s a good fit for you, and make a lasting impression. To make the most of this day, coming prepared is crucial.

Checklist for Discovery Day:

Background and Interests: Be ready to discuss your experience, skills, and why you're interested in this particular franchise.

Questions and Concerns: Prepare a list of questions and concerns to discuss with the franchise development representative. This could range from operational details to financial commitments.

Research: Brush up on your knowledge about the franchise, including its history, leadership team, and market presence. Throughout the due diligence process, you will be provided with a plethora of information and material. I always recommend going back through everything the Franchisor has provided, and any notes you have from your validation calls, to make sure everything is fresh and top of mind going into Discovery Day.?

Dress Code: While it may seem trivial, dressing appropriately can significantly affect how you're perceived. Just ask the Franchisor what the dress code is - some brands will have a more formal culture, while others will be more laid back and casual. Either way, you’ll feel much more comfortable if dressed appropriately.?

In my own experience, I've observed a wide range of behaviors during Discovery Days - from the incredibly prepared to the downright bizarre. The key is to be likable and knowledgeable. You want to put your best foot forward, but it’s incredibly important to be yourself! Your interactions during this day are not just with the franchisor but also with other potential franchisees. These interactions are often observed and can influence whether you're considered an excellent cultural fit for the franchise.

By being well-prepared, you increase your chances of making a favorable impression and gain a deeper understanding of the franchise, helping you make an informed decision.

The Social Dynamics of Discovery Day

Discovery Day is not just about your interactions with the franchisor - it's also a stage where your interactions with other potential franchisees come under the spotlight. These social dynamics can significantly determine whether you're considered a good fit for the franchise.

Here are some tips on how to navigate these social dynamics effectively:

Be Observant: Pay attention to how other potential franchisees interact with each other and the franchisor. This can give you insights into the franchise's culture.

Be Genuine: Authenticity goes a long way. Be yourself, but also be mindful of your behavior and language.

Be Engaging: Take the initiative to start conversations and ask questions. This not only shows your interest but also helps you gather more information.

Be Respectful: Remember, you're not the only one being evaluated. Show respect towards others' time and opinions.

Your behavior during Discovery Day reflects how you'll fit into the franchise's culture. In my journey, I've seen how interactions during this day can make or break one's chances of becoming a franchisee. So, be mindful of your social cues and interactions - they're more important than you think.

Virtual vs. In-Person Discovery Days

The COVID-19 pandemic has significantly changed how Discovery Days are conducted. While some franchises are returning to in-person events, many continue to offer virtual Discovery Days as an alternative. Each format has pros and cons, and preparing is essential.

Virtual Discovery Days?

Pros: Convenience, accessibility, and the ability to attend from anywhere.

Cons: Limited networking opportunities and a less immersive experience. Nothing completely replaces the opportunity to sit down face to face with the people you would be partnering with.?

In-Person Discovery Days

Pros: A more hands-on experience, better networking opportunities, and a deeper understanding of the franchise's operations.

Cons: Travel expenses, time commitment, and potential health risks (Note: many Franchisors will reimburse for at least a portion of your expenses to attend Discovery Day - i.e hotel and/or flights, up to a certain amount).?

Preparation Tips

Virtual: Test your technology beforehand, prepare a quiet space, and have a list of questions ready. Make it very clear that you're paying attention. It can be easier to get distracted when attending a virtual meeting vs. in-person.?

??In-Person: Besides the tips for virtual Discovery Days, consider travel logistics and make sure you’re on time.

Whether you're attending a virtual or in-person Discovery Day, the key is to be prepared and engaged. Your level of preparation and the questions you ask can speak volumes about your seriousness and suitability as a potential franchisee.?

It’s walking that fine line of being yourself, and having a good time, while also positioning yourself as a great addition to the franchise organization.? It’s like dating, you don’t want to try too hard, or pretend to be someone you’re not. But, at the same time, you want to leave a lasting positive impression!?

Final Thoughts

Navigating Discovery Day in franchising can be a complex yet rewarding experience. From the initial steps of research and discovery to the intricacies of social dynamics, each aspect plays a crucial role in your franchising journey.?

Feeling a mix of emotions is normal - optimism, apprehension, fear, uncertainty, and doubt. However, you can turn these emotions into stepping stones toward successful franchise ownership with meticulous preparation and the right mindset.

Take the Next Step

If you've found this guide helpful and are eager to take the next steps in your franchising journey, I invite you to reach out for a free consultation.?

This consultation is purely educational and addresses any lingering questions or concerns.?

It's your opportunity to gain further insights and make an informed decision about your future in franchising.