How to Turn Your Franchise Into a Family Business

Owning a franchise can be a great way to build a successful business. But for many franchisees, the ultimate goal is to pass the business down to their family members. Franchise businesses have a proven business model; ongoing support; training from the franchisor; and a strong brand, which makes it a relatively low-risk option for a family business that can be passed down from one generation to the next. Today, family-owned businesses account for 62% of the nation’s employment.

Turning a franchise into a family business, however, requires a bit of planning and strategy. 

Here are a few tips for franchisees who are looking to turn their franchise into a family business:

Start planning early. 

If you're thinking about passing your franchise down to your family members, it's important to start planning early. This means thinking about your long-term goals and developing a plan for how your family members will take over the business.

Train your family members. 

As you begin planning for the transition, it's important to start training and grooming your family members to take over the business. This can include things like teaching them the ins and outs of the franchise, giving them hands-on experience and helping them develop the skills they'll need to run the business.

Communicate with the franchisor. 

As you start planning for the transition, it's important to communicate with the franchisor to ensure that they're on board with your plans. The franchisor may have specific requirements or expectations for family members who are taking over a franchise, so it's important to be upfront about your plans and make sure everyone is on the same page.

It is also worth noting that many franchise brands have implemented programs and policies to support multi-generational ownership. For example, some brands have set up succession planning programs or offer special incentives or financing options for family members taking over the business. This is a trend that is becoming more common as franchisors see the benefits of having multi-generational families owning their brands.

Consider an ownership structure that allows for multiple partners. 

One way to turn your franchise into a family business is to have multiple family members as partners in the business. This allows for shared responsibilities and decision-making, and can help ensure that the business stays in the family for generations to come.

Create a comprehensive plan for the business. 

To ensure that the business can be passed down from one generation to the next, it's important to have a comprehensive plan in place. This plan should include things like financial projections, marketing strategies and plans for future expansion.

Overall, with the right planning and strategy, turning a franchise into a family business can be a great way to ensure that the business stays in the family for generations to come.