{"id":10113,"date":"2014-06-04T10:35:40","date_gmt":"2014-06-04T14:35:40","guid":{"rendered":"https:\/\/www2.franchisegator.com\/articles\/?p=10113"},"modified":"2023-12-07T15:07:34","modified_gmt":"2023-12-07T20:07:34","slug":"who-pays-for-franchise-discovery-day-11811","status":"publish","type":"post","link":"https:\/\/www.franchisegator.com\/articles\/who-pays-for-franchise-discovery-day-11811\/","title":{"rendered":"Franchise Discovery Day: Who Should Pay The Costs?"},"content":{"rendered":"

A common question asked by prospective franchisees is who
\nshould pay the cost of attending the Franchise Discovery Day<\/strong>?  Should the prospective franchisee pay for
\ntheir own costs or should the franchisor cover the prospective franchisees
\ncosts?<\/p>\n

In the world of franchising, there is no norm.  Each franchisor is different in regard to who
\nis responsible to pay for transport, lodging and food.  Generally payment policies fall into one of four
\nbuckets:<\/strong><\/p>\n

    \n
  1. Some franchisors pay for everything.  They tend to believe the following ” ‘the
    \nmore people we can bring in for our Discovery Day, the more new franchisees we
    \nwill attract.  Even if the person is not really
    \ncommitted, we want them in for Discovery Day because if they come, they may
    \nchange their mind.’  Although there are
    \ncertainly exceptions, often these companies have a lower initial investment and
    \ntend to attract individuals who are in an employee mentality.<\/li>\n
  2. One the other hand, some franchisors don’t pay
    \nfor anything.  They tend to believe the
    \nfollowing ” ‘We are only interested in meeting with serious people who are
    \nwilling to invest in their future. 
    \nInvesting a few hundred dollars to attend a franchise Discovery Day is
    \nthe first test.  If they are not willing
    \nto do this, then they are not really players and we don’t want to dedicate an
    \nentire day of staff time focused on them.’ 
    \nAgain, there are exceptions to this rule but often these franchisors tend
    \nto deal with a more sophisticated investor\/business owner.  These experienced, self reliant individuals
    \ndo not expect their expenses to be reimbursed.<\/li>\n
  3. The third type is the franchisor who splits the
    \nmiddle.  They require the franchisee pay
    \nsomething ” such as the airline ticket -but they also cover part of the
    \nexpense, such as the hotel and\/or airport transport and\/or food.  This approach achieves both objectives. It allows
    \nthe individual to invest in their self and show seriousness but it also
    \ndemonstrates to the prospective franchisee that the franchisor is excited to
    \nmeet them.<\/li>\n
  4. Finally, some franchisors offer to reimburse some
    \nor all expenses if you become a franchisee. 
    \nSimilar to the item above, this approach requires that the prospective
    \nfranchisee have a high degree of seriousness in the process while also sending
    \nthe message that the franchisor is willing to extend a courtesy.<\/li>\n<\/ol>\n

    Often the discussion of who should pay for Discovery Day is
    \nbroken down into an interpretation of roles.<\/p>\n

    If it is a recruiting or sales relationship where the
    \nfranchisor is the vendor (seller) and the franchisee is the consumer (buyer),
    \nthen it stands to reason that the seller should do whatever they can to ‘make
    \nthe sale’.  It would be similar to selling
    \na time share where vendors give away vacations if you attend the sales meeting
    \nor a company who is trying to recruit you to work for them.<\/p>\n

    On the other hand, if granting a franchise is a more
    \nequitable selection process where both parties need to feel comfortable
    \nentering into a relationship, then it would stand to reason that each party
    \nwould pay for their own expenses related to a business meeting where a
    \npotential long term relationship is being discussed.  <\/p>\n

    Underlying this discussion is one of personal responsibility
    \nand entitlement.  Moving from an employee
    \nmentality to a business owner mentality requires a decision to take control of
    \nyour future and to be responsible for your decisions.<\/p>\n

    When a franchisor pays for all the expenses, it fits with
    \nthe former employee’s feeling of entitlement that ‘expenses’ should be
    \n‘reimbursed’.  However, reimbursing these
    \nexpenses does not help a person evolve in regard to their understanding of what
    \nit means to be a business owner. <\/p>\n

    As a business owner, you are not entitled to have your ‘expenses’
    \nreimbursed.  Business owners make
    \ninvestments because they believe the investment has the potential for a
    \npositive outcome.  Seasoned business
    \nowners know this and they expect to pay for their own expenses.  If you are transitioning from an employee
    \nrole to an ownership role, it is good to understand this prior to investing in
    \na franchised business.<\/p>\n

    The real answer regarding the cost to attend a franchise
    \nDiscovery Day lies within you.  What role
    \nare you prepared to embrace? If you want to be a business owner, forget
    \nentitlement and take ownership of the process. 
    \nIf you cannot overcome the feeling that you are somehow entitled to have
    \nyour expenses reimbursed, maybe you should reconsider whether business
    \nownership is for you.<\/p>\n","protected":false},"excerpt":{"rendered":"

    A common question asked by prospective franchisees is who should pay the cost of attending the Franchise Discovery Day?  Should the prospective franchisee pay for their own costs or should the franchisor cover the prospective franchisees costs? In the world of franchising, there is no norm.  Each franchisor is different in regard to who is … Franchise Discovery Day: Who Should Pay The Costs?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":10114,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26],"tags":[],"class_list":["post-10113","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-starters"],"yoast_head":"\nFranchise Discovery Day: Who Should Pay The Costs? - Franchising Blog<\/title>\n<meta name=\"description\" content=\"A common question asked by potential franchisees is, 'who should pay the cost of attending the franchise Discovery Day?' 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