Owning and operating a franchise provides many opportunities to contribute to your community and build something for your family. When you invest in a franchise, you should also consider future plans such as your intentions for the business after your retirement.
Every franchise benefits from a clear succession plan.
Why do you need a succession plan?
Life is unpredictable and can bring challenges you never expect. Establishing a succession plan now protects your family from legal complications if you suffer an accident or become incapacitated. It also provides avenues for ownership transfer upon your retirement so you can rest easy knowing that the business will continue.
What qualities does your successor need?
Consider the needs of the business and the specific requirements of the industry as you determine the qualities your successor should have. Is it a dynamic industry that needs a high-energy personality? Maybe you need someone with attention to detail for a highly-regulated business. Consider the characteristics as you make your list of prospects.
Who should succeed you in the business?
Sometimes, your franchise successor is obvious. You may be already teaching one of your children about the daily operations and details. If not, take time to consider whether you want to hand the business off to one of your children, another relative, or someone you employ who shows commitment. Choose someone willing to make the commitment. Discuss your intentions and detail the responsibility so they can make an educated choice.
You might want legal guidance as you draft your succession paperwork. We offer free consultations to help you assess your needs.
