Insights from Ray Titus, CEO of United Franchise Group
Key Takeaways
- Discovery Day is a critical step in the franchise sales process, serving as an opportunity
for mutual evaluation between prospective franchisees and the franchisor - At United Franchise Group, Discovery Days are conducted individually (1,300-1,500
annually) with both virtual (90%) and in-person (10%) options available - Proper qualification is essential – prospects should visit a location and speak with
existing franchisees before attending Discovery Day - The primary purpose of Discovery Day is education and relationship-building, not
immediate sales closing - A structured approach with trained team members, clear follow-up processes, and
appropriate timing maximizes Discovery Day effectiveness
What is a Franchise Discovery Day?
A Franchise Discovery Day is a structured meeting where prospective franchisees visit a franchisor’s headquarters or participate in a virtual tour to learn more about the franchise opportunity. It’s a crucial step in the franchise investigation process that allows both parties to determine if they’re a good fit for each other.
According to Ray Titus, CEO of United Franchise Group (UFG), which operates 11 brands across 1,800 franchisees in 80 countries, Discovery Days are a fundamental component of their franchise sales process. At UFG, they conduct between 1,300-1,500 individual Discovery Day tours annually, which has contributed to their impressive growth.
The Evolution of Discovery Days
Titus explains that from 1986 to 2020, UFG conducted all Discovery Days in person, flying prospects to West Palm Beach, Florida, and covering their accommodations. Since the COVID-19 pandemic, they’ve transitioned to approximately 90% virtual Discovery Days, with 10% still conducted in person when requested.
“We do Discovery Day tours every single day. A day does not go by that we don’t have at least five Discovery Day tours. Some days we have ten or twelve Discovery Day tours, all individually,” says Ray.
The Essential Pre-Qualification Process
Before a prospect attends a Discovery Day at United Franchise Group, several qualifying steps must be completed:
- Financial verification – Ensuring the prospect has the necessary resources
- Location visits – Prospects must visit an existing franchise location
- Franchisee conversations – Speaking with 2-3 current franchisees
- Participation in owner calls – UFG hosts regular calls where prospects can hear from existing franchisees
“We insist that they visit a location prior to Discovery Day Tour. We also ask them that they speak to at least two to three owners before they come on Discovery Day Tour,” Ray emphasizes.
Purpose and Structure: Education Over Sales
Contrary to what some might expect, Ray reveals that UFG doesn’t view Discovery Day as a direct sales opportunity. Instead, they focus on education, fact-finding, and relationship-building.
“Very often people say, ‘Well, the primary purpose is to sell them a franchise.’ Well, is that what you’re really doing on the Discovery Day tour, or is it education? Is it fact-finding? Is it an opportunity to learn about our people and for us to learn about them?” Ray questions.
The Discovery Day Team Approach
A successful Discovery Day involves multiple team members, each with a specific role:
- The Host – Schedules meetings, ensures all participants are prepared, and handles follow-up
- Department Leaders – Present different aspects of the business
- Support Staff – Build credibility for the sales team and provide specialized knowledge
“They do not spend the time with one person. In fact, at United Franchise Group, it’s a lot of people. We go through this lineup and each and every person has their role to play,” explains Ray.
The Post-Discovery Day Process
After the Discovery Day, UFG doesn’t push for an immediate franchise agreement signing. Instead, they focus on a graduated approach:
- Pre-scheduled follow-up call the day after Discovery Day
- Refundable deposit of $9,500 (applied to the franchise fee)
- Continued education and question answering
- Final agreement once the prospect is comfortable
“We close on the next step. And the next step is a deposit. For us, that feels like it’s not pushing it too fast,” says Titus.
Timing is Everything
The timing of Discovery Day within the overall sales process is critical:
- Not too early – Ensure prospects have enough information
- Not too late – Maintain momentum in the sales process
- Swift follow-up – Contact prospects within 48 hours after Discovery Day
“Time kills deals,” Titus emphasizes. “The more time that you allow to go in between any of the steps that you have in your sales process… the worse.”
Setting Realistic Expectations
Titus concludes with advice about managing prospects’ expectations regarding certainty:
“I’d say, ‘Sir, I’ve been at this for 38 years. I’m still not 100%. If we got you at 80%, then we’ve done our job. You’re never gonna be 100% until you’re in the business making money and happy.'”
Summary
Discovery Days are a vital component of the franchise sales process. When executed properly with thorough pre-qualification, clear purpose, trained team members, and prompt follow-up, they significantly increase the likelihood of successful franchise relationships.
United Franchise Group’s approach—conducting individual Discovery Days, requiring location visits and franchisee conversations beforehand, focusing on education rather than immediate sales, and implementing a refundable deposit system—has contributed to their impressive growth to 1,800 franchisees across 11 brands in 80 countries.
Learn More About Franchise Discovery Days
Interested in learning more about Franchising or the Titus Center? Schedule a call with Dr. John P. Hayes, Director of the Titus Center for Franchising at Palm Beach Atlantic University.
The Titus Center for Franchising at Palm Beach Atlantic University is dedicated to empowering students and business professionals by teaching the transformative values of business format franchising. We are educating the next franchise generation.
About Palm Beach Atlantic University
Palm Beach Atlantic University, founded in 1968, is a private, Christian university, offering 55 undergraduate
degrees, numerous graduate degrees and professional degrees in nursing and pharmacy, with a 29-acre
campus in West Palm Beach and an Orlando campus. The University is dedicated to the integration of
Christian principles to prepare students for learning, leadership and service. Sailfish athletes compete in 18
NCAA Division II and Sunshine State Conference varsity sports. The 78-acre Marshall and Vera Lea Rinker
Athletic Campus provides facilities for training and hosting intercollegiate sports. As a Christ-first university,
PBA affirms the values that have built American society, including religious liberty and the free enterprise
system.