Entrepreneur
When it comes to franchise ownership, a common misconception is that potential franchisees are “buying themselves a job.” After all, don’t you just need the startup capital and a list of brands to choose from? Not quite.
Of course you need to be able to finance your new business — but this isn’t unique to franchising. Financial backing is required for any business venture. But franchising, as a business model, requires more than startup capital. It requires a mutually beneficial match between the franchisee and the franchisor. In fact, if you find an opportunity for which the only prerequisite is startup capital, that’s a red flag and you should reconsider whether it is in your best interest to sign with that brand.
Let’s examine how to present yourself to a potential franchisor throughout the various steps of the franchise journey.
Related: Considering franchise ownership? Get started now to find your personalized list of franchises that match your lifestyle, interests and budget.
The franchisee journey
The franchisee journey isn’t just about writing a check — it’s a multi-step process designed to ensure alignment, transparency, and long-term success for both sides. While franchising offers a clear business model and built-in support, choosing the right brand (and being chosen by the brand in return) requires thoughtful due diligence.
From your first call with a franchisor to Discovery Day at headquarters, each stage is a chance to ask critical questions, assess compatibility, and determine whether the opportunity fits your goals, values, and expectations. Typically, the potential franchisee journey will consist of, at a minimum, the following steps:
- Overview call: An introductory call with the brand to make initial introductions and determine a broad fit.
- Unit economics: A breakdown of the financials. What you can realistically expect from this partnership.
- FDD Review: The FDD (Franchise Disclosure Document) is a legal document provided by the franchisor to a prospective franchisee consisting of 23 sections which outline company history, fees and costs, contractual obligations and unit data among other important information.
- Territory Mapping: An exploration about the geographical areas where a franchisor grants a franchisee exclusive rights to operate their business.
- Discovery Day: Final step in the process in which the franchisee visits the franchisor headquarters to confirm mutual fits in terms of culture, vision, CEO — big picture stuff.
These steps are designed to be mutually revealing. Throughout this process, it’s important that both you, as the potential franchisee, have a chance to look under the hood of the parent company, or franchisor, just as much as it’s important for the franchisor to review your credentials and qualifications to become a part of their franchise brand.
Related: 4 Things I Wish I Knew Before Starting My Franchise Journey
Preparing for Discovery Day
Once you have completed the due diligence process and have selected a brand that you are seriously considering for franchise ownership, it’s time for Discovery Day, or as it’s sometimes called, Confirmation Day or Meet The Team Day. As mentioned above, Discovery Day is when a prospective franchisee visits a franchisor’s headquarters to look at the business and its operations. Ultimately, this is the final stop before the rubber meets the road and final decisions need to be made.
As a franchise consultant, I’ve seen many ways this final step in the process can go. I’ve worked with candidates who have soared through with flying colors and made a great match, I’ve seen candidates who had legitimate concerns about mutual fit and opted for another brand, and I’ve had candidates who have totally bombed the meeting and burned bridges on their way out the door. Trust me, you don’t want to fall into the last category.
This is why I coach candidates that, if you attend Discovery Day, then you should be 90% confident that you are going to sign. At this point, you’ve all but finalized that this is the brand. This day should be validation of a decision you’ve already made, you’re only looking for red flags or cultural fit. I often tell candidates, if you don’t have enough information to make a decision when you go to Discovery Day, then we’ve failed in the process.
Franchises are relationship centric, which is why it’s important to put your best foot forward when discussing an opportunity with a potential future franchisor – especially on Discovery Day. It has to be a mutual fit. The way to think about it is a partnership – both parties go into it because they think the other party brings something to the table that will lead to positive mutual outcomes.
So how to present yourself to the potential franchisor?
Related: 6 Red Flags That Will Get You Rejected on Franchise Discovery Day
Treat it like a job interview
Let’s say you’re interviewing for 3-4 different jobs. These are positions that you’re at least interested in. You may not know which job you want, but you don’t want to be rejected. After all, it’s always better to be operating from a position of multiple options versus settling for “good enough.” You always want the job offer. It’s not like buying a car – it’s a ten year relationship you’re going into – at a minimum.
This is exactly how I coach my candidates to present themselves to the franchisor throughout this franchisee journey. It’s imperative that you don’t walk into these meetings, and especially the Discovery Day room, thinking: “I’m buying the brand and they need to sell me.” You need to be a good partner too.
From the first contact, the franchisor is looking for people who are excited about their brand. This needs to extend beyond the numbers, you need to be excited about that business opportunity with that particular brand. You are more than the spreadsheet. Your behavior in the process is very important. They want to see you engaged and excited as a trusted brand ambassador.
So take the opportunity. Network intentionally with the executive team, make valuable connections, put your best foot forward and make strategic decisions about your future from a position of options versus scarcity.
Related: This 34-Year-Old Was ‘Wildly Un-Passionate’ About His Day Job, So He Started a 9-Figure Side Hustle: ‘Be an Animal’
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