Buying & due diligence

Discovery day

A discovery day is a meeting, usually at the franchisor's head office, where a prospective franchisee and the franchisor get to know each other, review the business model, and assess mutual fit before proceeding toward an agreement.

What it means

A discovery day is a recruitment and evaluation step rather than a legal requirement under the Franchising Code. It typically involves presentations on the brand, systems, training, and support, tours of operations, and meetings with key team members, giving both sides a chance to decide whether to continue.

For the prospective franchisee, a discovery day is a research opportunity, not just a sales pitch. It is a chance to test the franchisor's culture, ask hard questions about costs and support, and observe how the head-office team operates. What you learn should feed directly into your broader due diligence.

A discovery day sits early in the process and does not replace the formal protections of the Code. Attending one creates no obligation to buy, and it comes before, not instead of, receiving the disclosure document and agreement at least 14 days before signing and the 14-day cooling-off period afterwards.

In practice

Go in prepared with a written list of questions covering unit economics, total investment, ongoing fees, territory, training, support, and franchisee turnover. Ask to meet the people who would actually support you, and note whether answers are specific and consistent or vague and rehearsed.

Treat the day as two-way and unpressured. A reputable franchisor uses it to assess fit as much as to sell; if you feel pushed toward a quick commitment or deposit on the day, treat that as a signal to slow down and complete independent checks first.

A real example

At a fast-food franchisor's discovery day, a prospective franchisee tours the test kitchen, meets the field-support and marketing teams, and asks each about realistic labour costs. Two staff give noticeably different figures, so the buyer flags labour modelling as a key item for their accountant to test during due diligence rather than accepting the headline numbers.

Discovery day — FAQs

Is a discovery day required by the Franchising Code?

No. It is a recruitment step, not a legal requirement. The Code's formal protections, such as disclosure and cooling-off, apply separately and later in the process.

Does attending a discovery day commit me to buying?

No. It creates no obligation. You are free to walk away, and it comes well before the disclosure period and cooling-off rights that govern signing.

What should I ask at a discovery day?

Cover unit economics, total investment, ongoing fees, territory, training, support, and franchisee turnover, and ask to meet the people who would actually support your business.

Is a discovery day just a sales pitch?

It can feel like one, but you should use it as research. Good franchisors use the day to assess mutual fit; pressure to commit or pay on the day is a warning sign.

See the full franchise glossary, the Fee Index or our buyer guides.