Make Your Succession Plans Now: Succession Or Exit Strategies Come in Two Forms, Planned Or Inevitable (Management & Operations‪)‬

Where do you see yourself today? As a franchisee, you've purchased your franchise, invested many dollars of your life savings, worked hard, followed the operations manual, and now you are either reaping the benefits of your franchise dream or are struggling to overcome the challenges posed by the recent challenges in the economic downturn or with access to capital. As a franchisor, you've come up with a concept, nurtured it, believed in it, invested in it, watched it grow, and now you are either enjoying the growth you envisioned, or you are trying to find ways to improve your concept in hopes of finally turning the corner toward fulfilling that franchisor dream. While each situation presents different challenges and rewards, they also share an important common denominator. In each of the scenarios described, each has a succession plan or exit strategy in place. Succession or exit strategies come in two forms, planned or inevitable. The primary difference between exit strategies is whether or not your exit is with dignity or under duress. Whether you have input and control over the future of all your hard work or all is left up to possibly all the wrong people. In the IFA Franchise Business Leader Survey for 2010-2011, among franchisees and franchisors, the top issues of concern all related to the ongoing operations. Interestingly, there was no mention of franchisee or franchisor concerns for maintaining a strong value for the purpose of next generation continuity or eventual sale. This is true even though there are many franchisees and franchisors that are from the baby boomer generation and are at or nearing retirement age.