The term "day of discovery" can be a little misleading. While there is certainly an element of discovery at a prospective franchisee visiting your company and meeting with stakeholders for the first time, Discovery Day is no longer intended to be the last step towards signing up. a deal. You should go hoping to conclude with something like, "I will send the final agreement tomorrow. We can then coordinate a signature time and begin the integration process. "
It is not so easy, of course, and there are many aspects to cover and accept to reach this point. Here are some tips to make Discovery Day a deal maker and not a deal-breaker:
Cover the bases beforehand
Again, the day of discovery should arrive near the end of the sale, when the franchisor and the franchisee arrive with a warm welcome. The relationship, trust and basic information must all be present before you plan the day of discovery, so your job is simply to close the deal. See our article, 6 Discussions that should take place before Discovery Day to avoid the pitfalls of wasting time, money and resources in unfortunate days of discovery.
Creating a program
There are many ways to lead a day of discovery. Will there be a single visit to the headquarters? Do you want to take the prospect to several different places? Who will they meet in your company? These variables, as well as those on which the candidate already has knowledge, will help you to establish and achieve the objectives of the day. The overriding goal is to provide the candidate with all the information he needs to make a decision.
Inform the franchisee (s)
Presenting a franchisee candidate is a great way to get the candidate to buy a franchise from your company. We always tell franchisors that their current franchisees are their best sellers in terms of new franchisees, because they walk, talk testimonials.
Encourage franchisees to share positive comments when you stop on the day of discovery. Because they take time out of their day to help you sell a franchise location, it's not unusual to compensate or provide a special discount for their participation.
Franchisors sometimes invite several candidates to a Joint Discovery Day. While this may be effective, it can present a risk of altering a whole lot of prospects. If you think that there might be a negative or dominant personality in the group, consider holding separate discovery days for each candidate.
Perhaps most important, do your best to make each candidate feel important – because they are. Explain to them why you believe that they are perfectly suited to the occasion and engage them in a dialogue or demonstrations as often as possible throughout the day.
Reaching a verbal agreement
Remember, Discovery Day is not hard to sell. You have come so far and invested a lot of time; the same goes for the candidate. Now, you just need to answer any questions that they might have. If all goes well, it is quite reasonable – and expected – that a definitive agreement be delivered soon after.
Are you looking for more advice on franchising your business? At Soden & Steinberger, APLC, we provide comprehensive legal advice to franchisors. Learn more about our company and call us at 619-239-3200 to schedule your free franchise consultation. You can also submit your application online.