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Franchise Discovery Day: Who Should Pay The Costs?

Franchise Discovery Day: Who Should Pay The Costs?

Franchise Discovery Days (FDD) are events where a lot of information is shared and prospective franchisees meet franchisors face-to-face for discussions on franchises. That said, there are certain costs that are incurred by both franchisors and potential franchisees, to make the event successful. Pricing policies fall into these 4 categories.


1. Franchisors pay for everything

These are some franchisors that will pay for everything. These franchisors believe in attracting crowds even if they know that not everyone will buy the franchises. They take care of all the costs, so that more and more people will attend the events and even if he has no interest in buying a franchise, may change his mind at the last minute.


2. Franchisors don’t pay anything at all

Some franchisors aren’t interested in investing their time, staff and money in potential franchisees. They believe that if the person is interested in buying a franchise, then he/she will attend a Discovery Day by paying a small fee. A small fee, according to such franchisors, is not a big amount, and will attract only serious people. Plus, people who are willing to invest in a franchise will not look to be reimbursed for whatever they have spent.


3. Split the expenses

There are some franchisors that need the franchisees to pay something, like an airline ticket. The franchisors bear some expenses, such as food or hotel transports/airport transports. The franchisor believes that this approach serves both the purposes – of the franchisor hosting his event, and the franchisee investing in himself.


4. Expenses reimbursed if the franchise is bought

Some franchisors are ready to reimburse the entire expenses if the prospective franchisee buys the franchise. Others who have not decided to buy the franchise have to foot their own bill.



Who pays the costs depends on what role you are willing to play. As someone who is used to being reimbursed, you might not appreciate spending for an event. Franchisors call that the “employee mindset.” Businessmen, on the other hand, are willing to take risks and do not mind if they have to shell out money from their own pockets. Who you are depends on what role you want to play.

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