Multi-Unit Franchisee Magazine Issue IV, 2016 - Page 55

SUCCESSION

While father Terry maintains controlling interest , a succession plan created with the help of outside counsel mapped out a buy-sell agreement , estate issues , and a strategy that calls for Andy to eventually take over . “ By eventually , he means death ,” jokes Andy , 35 , who purchased shares in the company in 2007 .
His sister has worked for the business , but Andy is the only one of Terry ’ s four children to buy into Weed Man as a career . Andy says this has made the succession plan relatively friction-free .
Scenarios for family conflict abound . Problems can erupt when parents take a simplistic view of succession . Examples include dividing ownership interests evenly no matter the level of involvement by their children , or putting off choosing a successor ( or successors ) because multiple children or employees want to lead the company . Founders may also assume their children will carry on the business , only to discover that they want to chart their
Andy and Terry Kurth own course , don ’ t have the skills , or the franchisor fails to give the green light to the next generation . And sometimes owners simply don ’ t want to give up control .
“ I think Dad handled it very well ,” says Andy . “ He gifted all four of us a small percentage of the company , but for my siblings they are not voting shares . So it is clear they have no say in what happens in the company and are not involved in the company day to day .”
Terry Kurth believes the acquisition of shares by Andy and two key management executives provides “ sweat equity ” to encourage the trio to work harder to build the company . His job now , he says , is to give the younger generation “ tons of autonomy .” And when it comes to major issues , he says he is 80 percent retired .
“ I have never had to use my voting power , but my job is to at least season them , because in almost 40 years of business , you have seen a lot of things ,” he says . “ It has been cool to see the growth and
opportunities that we are giving people to grow with the company .”
Preparing for transition Whether the future of the franchise organization includes family members , a partner , key employees , or all of the above , a strong succession plan considers the predictable , probable , and possible scenarios that could affect the ongoing success of the business , says Rawls .
For the Siebers , whose children range in age from 21 to 32 , this means planning with a future sale in mind . All six children , including two still in college , have gotten their feet wet working at nearly every job in the family business , but so far there are no plans for second-generation ownership .
At 53 , Wanda Sieber has no plans to retire soon . Still , she says , the couple constantly tweak and review their succession plan , keeping the lines of communication open with employees who have expressed ownership interest .
Two years ago , the couple sold their family home to buy waterfront property on Green Bay that will become their retirement home , complete with a recording studio for Wanda to continue her passion for musical composition . And since turning 62 last year , Bill Sieber has cut his hours in half , spending more time on the house and his love for classical guitar , while testing the retirement waters — a move succession planning specialists applaud , if possible , not only to see how it feels to step back , but also to boost employee and franchisor confidence in any upcoming leadership changes .
“ It is a good way to check and see how much of the business knowledge was actually transferred to employees ,” says Wanda . “ There is nothing like having the guy who knows everything out of the building half the time . I would highly recommend that to anyone looking at potential retirement .”
The human factor Hatching a strategic succession strategy is vital to developing strong leadership and ensuring the future of a multi-unit franchise business . For family-owned companies , planning for illness , death , or retirement can wreak havoc on family relationships and create business and financial headaches . This is avoidable , but not easy without careful advance planning and an eye toward personalities .
“ Finding a way to create boundaries
MULTI-UNIT FRANCHISEE ISSUE IV , 2016 53
SUCCESSION While father Terry maintains controlling interest, a succession plan created with the help of outside counsel mapped out a buy-sell agreement, estate issues, and a strategy that calls for Andy to eventually take over. “By eventually, he means death,” jokes Andy, 35, who purchased shares in the company in 2007. His sister has worked for the business, but Andy is the only one of Terry’s four children to buy into Weed Man as a career. Andy says this has made the succession plan relatively friction-free. Scenarios for family conflict abound. Problems can erupt when parents take a simplistic view of succession. Examples include dividing ownership interests evenly no matter the level of involvement by their children, or putting off choosing a successor (or successors) because multiple children or employees want to lead the company. Founders may also assume their children will carry on the business, only to discover that they want to chart their Andy and Terr -Ѡ()ݸ͔eЁٔѡ̰ͭȁѡ)Ʌͽȁ́ѼٔѡɕЁѼ)ѡЁɅѥͽѥ́ݹ́ͥ䁑eЁ݅ЁѼٔɽ+q$ѡЁٕݕt)́ͅ七q!ѕȁ́͵)ɍхѡ䰁Ёȁ)ͥ́ѡ䁅ɔЁٽѥ͡ɕ̸M)́ȁѡ䁡ٔͅ䁥ݡЁ)ѡ䁅ɔЁٽٕ)ѡ䁑Ѽ今t)Q-Ѡٕ́ѡեͥѥ)͡ɕ́䁅ݼ䁵Ёᕍѥٕ́ɽ٥̃qݕЁեt)ѼɅѡɥѼݽɬɑȁѼ)եѡ丁!̰́ܰͅ)́ѼٔѡչȁɅѥqѽ́)ѽ今tݡЁ́Ѽ)Օ̰́̀ͅɍЁɕѥɕ+q$ٕٔȁѼ͔ٽѥ)ݕȰЁ䁩́ѼЁЁ͕ͽ)ѡ͔Ѐ啅̰́ͥԁ͕ٔЁѡ̳t̸ͅ+q%Ё́Ѽ͕ѡɽѠ()չѥ́ѡЁݔɔ٥)Ѽɽ܁ݥѠѡ今t)AɕɥȁɅͥѥ)]ѡȁѡɔѡɅ͔ɝѥՑ́䁵̰)ѹȰ䁕啕̰ȁѡٔ)ɽՍͥͥ́ѡɕхɽ͍ͥɥ)ѡЁձЁѡՍ́)ѡ̰ͥ́ͅIݱ̸)ȁѡM̰ݡ͔ɕɅ)ɽāѼȰѡ́́)ݥѠɔͥͅɕ)Ցݼѥٔѕ)ѡȁЁݕЁݽɭЁɱ䁕ٕ䁩)ѡ䁉̰ͥЁͼȁѡɔɔ)́ȁ͕Ʌѥݹ͡)Ѐ̰]Mȁ́́Ѽ)ɕѥɔͽMѥ̰͡ͅѡхѱݕɕ٥܁ѡȁՍͥ)ѡ́չѥ)ݥѠ啕́ݡٔɕ͕)ݹ͡ѕɕи)Qݼ啅́ѡͽѡ)䁡Ѽ݅ѕəɽЁɽ)ɕ ѡЁݥѡȁɕѥɕЁєݥѠɕɑ)Ցȁ]ѼѥՔȁͥȁͥͥѥͥ)ɹȁЁ啅Ȱ Mȁ́)́́ɔѥ)ѡ͔́ٔȁͥեхȰ)ݡѕѥѡɕѥɕЁ݅ѕϊQ)ٔՍͥ́ՐͥЁѼ͕܁)́ѼѕЁͼѼЁ啔Ʌͽȁ)̸͡+q%Ё́݅Ѽ͕)܁Սѡͥ́ݱ)݅́ՅɅ͙ɕѼ啕̳t)́ͅ]qQɔ́ѡ٥ѡݡٕ́ѡЁ)ѡեѡѥ$ݽձ)ɕѡЁѼ役)ѕѥɕѥɕлt)Qյѽ)!эɅѕՍͥɅѕ)́٥хѼٕɽ͡)ɥѡɔձѤչ)Ʌ̸͔ͥȁ䵽ݹ)̰ȁ̰Ѡ)ȁɕѥɕЁɕٽɕѥ́͡ɕєͥ́)̸Q́́ٽ)ЁݥѡЁɕհم)唁ѽ݅ɐͽѥ̸+q݅Ѽɕєչɥ()5U1Q$U9%PI9 !%M%LLT%X()՘}ՍͥȰФ(((ؼ؀́A4((0