Multi-Unit Franchisee Magazine Issue III, 2014 | Page 83

AdIndex ADVERTISER PAGE a life-changing event. A common way to address this is through a buy-sell agreement between the owners that clearly details the terms at which a partner’s share may be sold to the other partners in the event of death, disability, or retirement. Typically, a valuation formula is used to value each partner’s share, so that there is no question as to valuation when a triggering event occurs. The buy-sell agree- The optimal outcome will be achieved if you make a specific and solid exit plan up front. ment also helps prevent potentially sticky situations, such as becoming business partners with a former partner’s spouse or family member, or perhaps a trustee. Finally, a buy-sell agreement creates a market for a departing partner’s shares, which is critically important in terms of receiving value for their portion of the business, as there otherwise would be no real market for a minority-share interest in a privately held business. In conclusion, it is inevitable that a transition of ownership of your business will occur at some point in the future. The optimal outcome will be achieved if you make a specific and solid exit plan up front, addressing the critical items outlined above. When it’s time, you will be a ready, willing, and able seller. Dean Zuccarello is CEO and founder of The Cypress Group, a privately owned investment bank and advisory services firm focused exclusively on the multi-unit and franchise business for 24 years. He has more than 30 years of financial and transactional experience in mergers, acquisitions, divestitures, strategic planning, and financing in the restaurant industry. Contact him at 303680-4141 or [email protected]. 2015 MUFC Save the Date 71 2014-2015 Conference Calendar 79 Aaron’s, Inc. 9 Brick House Tavern+Tap 31 Brixx Wood Fired Pizza 49 BullsEye Telecom 25 Captain D’s 47 Checkers & Rally’s Restaurants 19 CKE Restaurants Back Cover CKE Restaurants Tip On Cover Corner Bakery Café 45 Costa Vida 59 Del Taco 65 Denny’s 5 Direct Capital 7 Dunkin’ Brands 17 East Coast Wings & Grill 59 Feed America 63 Firehouse Subs 63 Forever Yogurt 45 franchiseIQ 61 Franchise Learning Academy 75 FRANdata Corporation IBC Fuddruckers Inc. 63 Golden Corral Buffet & Grill 73 Hungry Howie’s Pizza 41 Hurricane Grill & Wings 29 International Franchise Association 77 J.D. Byrider Systems, Inc. 41 Jake’s Wayback Burgers 57 Jimmy John’s Gourmet Sandwich Shops 27 LED Source 75 Mama Fu’s Franchise Group, LLC 47 Massage Heights 13 McAlister’s Deli 55 Medifast Weight Control Centers IFC Moe’s Southwest Grill 39 MOOYAH Burgers, Fries, Shakes 29 MU IV Advertising Deadline 73 My Salon Suite 21 Newk’s Eatery 65 Pancheros Mexican Grill 53 Papa Murphy’s Take ‘N’ Bake Pizza 55 Pet Supplies Plus 39 Red Mango 3 Russo’s New York Pizzeria 35 SEARS Hometown and Outlet Stores 10,11 Signal 88 Security 51 Smoothie King Franchises, Inc. Custom Insert sweetFrog Premium Frozen Yogurt 35 The Coffee Beanery 73 The Greene Turtle Sports Bar & Grille 49 Tide Dry Cleaners 1 Togo’s Franchisor, LLC 73 Total Nutrition 31 Wingstop Restaurants Inc. 53 Wok Box Fresh Asian Kitchen 57 ZIPS Dry Cleaners 51 MULTI-UNIT FRANCHISEE IS S U E III, 2014  81