A lot of hard work goes into running a business. Some families run their businesses for decades with hopes that the company will be handed down to the owner’s children. Sometimes franchise owners can face hassles if they don’t properly plan for who is going to take over their business when they aren’t able to run it anymore.
One family-owned Houston franchise learned business succession planning as early as possible is essential to helping families keep their business running from one generation to the next. Lots of memories are made at family businesses, and it would be a shame if memories couldn’t continue to be made because of a lack of planning and cooperation.
The Dodd family opened their franchise and saw it as business to pass down through the generations. Since many franchisors have guidelines in place and require approval of the successor to continue operating the business, the Dodds knew there would have to be a lot of cooperation among the siblings and clear planning as to how the business would be run once it was passed down from their parents.
According to Entrepreneur, communication is the number one thing when it comes to succession planning with a franchise. Since the franchisor can decide the successor of the franchise, it is important to understand exactly what they expect. It’s also key to start communicating early, both within the family and with the franchisor. Consulting with an attorney who specializes in business succession can help make the process easier.
Source: Entrepreneur, “How to Create a Succession Plan for a Franchise Business,” Jason Daley, Dec. 2, 2011