David CiambellaAll Articles
Franchisee Succession Fumble: Don’t Forget the Franchise Agreement
Those of you who are franchisees pay close attention! Have you developed a succession plan for your business? If so, I commend you as many of your peers talk about having a succession plan, but have yet to develop formal documentation that reflects their goals and objectives. Now let me ask you another question. Does your succession plan consider requirements in your franchise agreement such as ownership transfers or successor qualifications? If not, I suggest you shake the dust off of the franchise agreement and find the specific paragraphs that relate to successor nominees, ownership transfers, death, disability etc. Many [...]
How to Overcome the “Perfect Family” illusion
Recently while attending a church service our preacher, Dr. Bob, delivered a sermon titled, “Behind The Manicured Hedges” that struck a chord personally and also as a professional family business succession planner. The preacher was referring to Winter Park, FL a largely affluent community consisting of families who have above average means, fabulous homes and impeccable landscaping surrounding their homes. Many who drive along the brick paved, tree lined streets are impressed with the meticulous landscaping and are somewhat envious thinking that these families have no issues or no problem that money cannot fix. If only that were true! The [...]
As Seen in Multi-Unit Franchisee Report – Have It All Done?: There is a Difference Between Continuity Planning and Succession Planning
Over the years we have encountered hundreds of successful business owners who have made the statement "I have it all done," as they describe how well they have planned and documented their business succession plan. Unfortunately, in most cases these business owners were referring to the work they have done to implement their wills, trusts, buy/sell agreements, and life insurance, which we would constitute as business continuity planning. You may be asking yourself, what is the difference? Business continuity planning addresses transferring a business to the next generation, whereas business succession planning addresses transferring a business through> the next generation. [...]
Preparing your Business to Weather the Succession Storm
Hurricane season is upon us and hopefully you have taken the necessary precautions in the event Mother Nature unleashes the power and fury of a hurricane on Central Florida. Forecasting the weather is not a perfect science, however; when it comes to identifying and tracking hurricanes, weather forecasters do a remarkable job. Thanks to news outlets, we have the benefit of advance warning. We are given insight into the strength and magnitude of the storm and we even have a close projection as to the hour the hurricane will pass over our area. Yet many people ignore the advance warning, [...]
When is the Right time to Discuss Succession Plans with Family Members?
In 1988, Jack was thrust into the leadership position of the family business his father started in the late 1950’s. At the time Jack took over the family business there was only one dealership and approximately sixty-five employees. Over the years the business had become highly productive and profitable in large part due to his father’s incredible work ethic, customer focus, business savvy and knack for attracting quality employees. Jack’s father was a humble man who attributed much of his success to luck, good fortune and being in the right place at the right time. “Timing is everything” was a [...]
Keys to Preparing Your Successor
Just as there are many roads that lead to Rome, there are many paths that can be taken when it comes to preparing your successor. Many Dealers believe operational experience in the front and back ends of the business and participating in learning opportunities such as Dealer Academy are all that is necessary to become a successful auto dealer. Operational rotations and successfully completing industry education are extremely valuable steps in the successor preparation process. However, this approach often results in a false sense of security for both the Dealer and the aspiring successor as other critical developmental opportunities are [...]
