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When it comes to managing a family-owned franchise, the transition from one generation to the next can be fraught with challenges. The importance of a well-thought-out succession plan cannot be overstated, and&nbsp;<a href="https://www.linkedin.com/in/rmascia/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-create-a-succession-plan-for-your-family-franchise-2727719" target="_blank" rel="nofollow">Bobby Mascia</a>, CEO of&nbsp;<a href="https://grwealthplan.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-create-a-succession-plan-for-your-family-franchise-2727719" target="_blank" rel="nofollow">Green Ridge Wealth Planning</a>, knows this better than most. After joining his own family’s franchise business, which involved&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-open-a-dunkin-franchise-2724825#stories">Dunkin' Donuts</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-open-a-baskin-robbins-franchise-2726815">Baskin Robbins</a> locations, Mascia learned first-hand the complexities and rewards of family-run franchises. Today, he helps other entrepreneurs navigate the process of succession planning and ensuring their family businesses are set up for long-term success.<h3>The Unexpected Path Into the Family Business</h3>Mascia’s journey into the family business wasn’t something he had planned. Originally pursuing a career in finance and investment banking on Wall Street, Mascia’s life changed dramatically after the tragic events of 9/11. He was supposed to be in the Twin Towers that day, but a last-minute trip to Boston ended up saving his life. The events left him re-evaluating his career and his priorities.“I knew that my family needed my help, and I decided to do the one thing that I promised myself I’d never do,” Mascia said. “I got involved in the family business.”For the next nine years, Mascia and his family grew the business from a few locations to 40. But after having his first two children, he decided it was time to carve his own path again. Today, Mascia runs Green Ridge Wealth Planning, a financial planning and investment management firm, but his experience in the family business continues to inform his expertise in family franchise succession planning.<h3>Why a Succession Plan Matters</h3>Succession planning is essential for ensuring the long-term viability of a family-owned franchise, and Mascia has several key pieces of advice for franchise owners looking to hand over their business to the next generation.&nbsp;“There are four elements that you really should consider from a succession plan,” said Mascia. “Those four elements are really going to be: operations, legal, legacy and tax.”The first step, according to Mascia, is evaluating operations — this includes identifying the best roles for your children in the organization. “Maybe the kids aren’t necessarily the right fit for the right roles of leadership,” he said. “You have some kids that fit perfectly in line with leadership and continue to carry the torch, but you have some children who maybe have different strengths where you need to bring in external leadership.”Next, it’s important to understand the legal implications of transferring ownership. “Some franchise agreements you can’t put into a trust, and some have to go from the owner to the successor,” Mascia said. “Some franchisors will require that those successors go through the appropriate training to get licenses, so there are different ways that the franchisor will allow the transfer of the assets to go from one generation to the other.”<h3>Evolving the Next Generation Into Leadership</h3>One of the key pieces of advice Mascia offers is that transitioning a franchise from one generation to the next should be a gradual process. “It’s more of an evolution than it is an event,” he said. “The younger generation needs to gradually take on more responsibility, with clear expectations set for each year.”Mascia encourages franchise owners to set milestones for the next generation, outlining expectations for what their involvement will look like year after year. “Here’s what the first year’s going to look like, here’s what the second year’s going to look like, and here’s what the third year’s going to look like,” he said. “You may not know year two or year three, you may have to get through year one, but at least set the expectations.”<h3>Navigating a Lack of Interest</h3>What happens when the next generation isn’t interested in taking over the family business? Mascia advises against trying to force a family member into the role if they aren’t passionate about it.“You don’t want to talk the next generation into getting into something that they may not succeed at,” he said. “They may end up reducing the value of the entity and living a life that they may resent years down the line because it just didn’t work out.”Instead, Mascia believes in educating the next generation about the business while allowing them to make their own decisions. “If you continue to run your business in a way where you look at what your endgame is,” he said, “then the option of the kids wanting to take over or not becomes a viable business that can either self-sustain itself or become something that’s more of a portfolio asset.”<h3>Preparing for Financial Independence</h3>Another often-overlooked aspect of succession planning is the personal financial security of the franchise owner. “You need to take into consideration your own financial planning and how you’re setting yourself up to have a well-thought-out exit,” Mascia said. Without a solid financial plan, franchise owners risk putting unnecessary pressure on their children if they aren’t ready to take over the business.Mascia stresses that planning ahead allows for flexibility and ensures that the business can thrive, regardless of whether it stays within the family. “If you’re not on target, you need to recalibrate to get back on target,” he said. “The sooner you can do that, the better.”<h3>Succession Plans Are Complex but Essential</h3>Creating a succession plan for your family franchise is a complex but essential process. From determining the roles and strengths of family members to navigating legal agreements and ensuring financial independence, there are many factors to consider. Mascia’s experience in both his family’s franchise and his financial planning business highlights the importance of thoughtful, forward-looking succession planning. Or as he put it, “You need to have a target to reach toward to understand what that target is going to get you on the back end.”By following these key steps, franchise owners can ensure that their family businesses are set up for success in the next generation and beyond.Growing and selling franchises is difficult. No great franchise did it alone. Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-create-a-succession-plan-for-your-family-franchise-2727719" target="_blank" rel="nofollow">www.1851growthclub.com</a> and see what we can do for you.

Bobby Mascia - Green Ridge Wealth Planning - Succession Plan for Family Franchise - 1851 Franchise

Creating a Family Franchise Succession Plan | Expert Advice from Bobby Mascia

1851 Franchise

Bobby Mascia, CEO of Green Ridge Wealth Planning, offers advice on creating a family franchise succession plan, focusing on operations, legalities, gradual transitions and financial planning.

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