Canadian Franchise

Franchising with a Family: 8 Steps Every Franchise Owner Should Take for their Loved Ones

from David Wimer, Founder and Managing Principal, David Wimer Advisors, LLC.

No one likes to think about the jeopardy that sudden and unpredictable crisis can place on your business, finances and family. We know firsthand that as franchise owner/operators you must.

When you are a franchise owner, there are some unique complexities for your spouse and heirs. Your business (and family) relies on terms of a license agreement, which must be addressed in the event of a business transition. A large part of our practice is working with the franchise owner, their family members and spouses to protect from the negative financial effects of sudden, unpredictable events. In our work we have identified eight steps every franchise owner should take to protect their family, in the event you are absent and they should need to confront that unplanned crisis.

1. Minimize family liability exposure.

While you may need to be personally liable for some or all of your business debt, do everything in your power to keep family members from becoming personally liable, too. We recommend:

  • Make every attempt to avoid having your personal guarantees convey to your spouse or other family members. Your attorney can help you here.
  • Carry life and disability insurance sufficient to cover all personal guarantees and at least 2 years of your income.

2. Have a family or estate attorney.

You need to have an attorney whose sole responsibility is to look out for your family in a crisis. For instance, a business attorney will have primary responsibility to look out for the business.
There is always the possibility of conflicts of interest. A family or estate attorney may be better suited to address both family members and business matters and how each would be affected by sudden crisis. An attorney with knowledge of franchise law may also be of use if the crisis is one which affects the licensing rights of heirs and spouses.

3. Know your Franchise Licensing Terms. Consult with your attorney to see what occurs in death, divorce or disability.

We have reviewed many Franchise Licenses for leading brands of hotels, fast food restaurants, automotive repair and business services. We have seen wide variations in terms of transferability, depending upon the brand. It is extremely important that your family know precisely – if this happens, what happens next.

Seasoned owner/operators also know how the Franchisor has behaved in times of crisis. Your local or regional franchise coop may be able to share how certain situations have been handled in the past, so that you know what you/ your family can expect in a crisis. Your Franchise License may also require certain owner/operator or legal responses depending upon the situation. Topics may include transferability and rights of information or privacy. Our point here is: The Franchisor is a critical party to be included in your family’s decision-making. We find that open communication in times of crisis is essential to any successful business transition.

4. Create a Business Protection Pack

You should maintain separate copies of:

  • All legal business documents
  • All monthly, quarterly, and annual financial statements
  • All tax returns
  • Bank statements
  • Employment contracts for key employees
  • Your succession plan (i.e., who you want to manage the operations of your business if you are no longer there)
  • Contracts with key vendors
  • Contracts with key customers
  • Insurance coverage: health, life, disability or long-term care
  • Computer passwords, bank passwords, safe combinations

These documents should be kept up-to-date regularly and in a safe deposit box at a local bank where your spouse/heir and your family attorney can have immediate access.

5. Share the existence of the Business Protection Pack with your personal financial planner.

The importance here is easy access and insight from a key family professional that is providing advice to your family/heirs. Critical documents such as are outlined above are essential to seeing the big picture. Many financial planning brokers provide cloud storage as a value-added service. For instance, we know Ameriprise® offers a free, easy-to-use cloud service for its client investors.

6. Include your intentions for your business assets in your Will.

Your Will should specify not only who gets what with respect to ownership in the business, it also needs to spell out what responsibilities each heir may or may not have.

7. Keep your spouse informed.

Real problems tend to occur when a franchise owner dies or becomes disabled. Generally we find 85% of the franchise owner’s wealth assets are tied up (illiquid) in the business. Most importantly, the business generates 100% of the family cash flow. Your spouse (or other primary heir) has a need-to-know on a regular basis, how the business is performing in the event of a crisis. Difficult times require informed decisions, and having business context for making the right decision is critical. If you keep it all to yourself, surviving the crisis without your insight may be impossible.

Consider inviting your spouse to regularly attend a quarterly or annual financial meeting to listen, so that they know what is happening. Your spouse needs to preserve assets and protect your family in event of your unplanned absence. Allow your spouse to get to know your senior management, business attorney, CPA, and any other key business advisor’s you may have. If something happens to you, your spouse will have to rely on these people to work through the business transition. Those relationships do not have to start from scratch.

8. Put a Power of Attorney in place.

The PoA needs to make clear what role your spouse or other heir(s) will have with regard to the business. This PoA, or a separate one, also needs to discuss the handling of any medical issues requiring the input of others. Again, your Estate Planning Attorney is best at having these types of documents developed that fit your family business situation. While you, as a franchise owner, cannot totally insulate your family from the impact of a business crisis, we believe you owe it to your family to take what steps you can. Our experience has shown that well over half of the serious business problems related to death, disability or divorce that we deal with regularly would have been avoided if the franchise owner/operator had just taken the time to put these recommendations in place.

Davis WimerDavid Wimer is Founder and Managing Principal of David Wimer Advisors, LLC where he works with privately-held, family businesses to navigate business transitions and prevent financial crisis. He is the author of INSIGHT: Business Advice in an Age of Complexity.
xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonfutebol ao vivofutemaxmulticanaisonbetbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩa百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88