Any business can benefit from a comprehensive business succession plan. That is because most people do not anticipate having to suddenly step out of a company.
An unplanned exit could be catastrophic to the business, even one that is reliant on the franchise model. Many franchisors already require that franchisees have a succession plan in place. This ensures smooth and continued operations if something were to suddenly happen to the business owner, such as incapacitation or an unexpected death. Franchisees and all business owners should sit down and figure out what will happen if something were to happen to them and who inside the business, if anyone, would be eligible to step in and take over operations.
This can help to prevent conflicts among family members and key employees after a franchisee suddenly has to exit the business. Although it is difficult to think about these long-term opportunities that may never become true, it is still important to think about the possibilities and the dangers that could face your franchise if you don’t do appropriate planning. The support of a knowledgeable estate planning attorney can help to guard against many of these most common issues.
Setting aside time to talk to a lawyer and looking through your franchise agreement are important.
