Top 5 tips if you are going to start a franchise with the family

Opening a franchise with family can be rewarding as well as challenging. We propose these 5 tips that will help you run a family business in harmony.

Working together to grow a family business and pass it on to future generations can be an exciting and rewarding pursuit. Among the advantages of running a family business is accessible to human capital in the form of family members, which guarantees a greater personal interest in the success of the business.

Shared values and trust are one of the pillars of a satisfactory job and with the family, this is achieved in a more natural and organic way. However, balancing a business within family dynamics comes with its challenges. It all depends on how it is managed from the start. So if you're considering opening a franchise with your family, keep these tips in mind.

1. Put everything in writing

Document each contract or agreement in writing. It is common for family members to get involved in the business without first developing a formal plan outlining what each will get from the business. Relying strictly on verbal agreements or resolving different situations on the fly can lead to future conflicts or misunderstandings.

But… How to do it? It first clearly outlines what is required of each in terms of duties, job description, operating procedures, ownership interest, compensation, benefits, perks (if any), and other matters associated with participation in the business. Disagreements are bound to arise, but putting everything in writing will go a long way in resolving these disputes.

It is also important to write a succession plan that specifies when and how the business will be passed on to the next generation, for whatever reason. The plan should provide financial resources to the new owners, establish a training plan for the new management and specify what role (if any) the previous manager will continue to play. It is advisable to seek professional advice outside the family, preferably a lawyer and an accountant to ensure a smooth transfer.

2. Define tasks with criteria

Avoid the situation of assigning the family a job "for sympathy" and define the criteria of the position well beforehand. As in any other job, it should always be based on the qualities and benefits that each employee can bring to the company, so that pre-summarizes requirements such as prior experience, desired skills and education, or technical competency, and then cross-checks it with your employees.

Developing a management plan helps to assess the skills and abilities of your team. Design the hierarchy that limits the worker's responsibility based on his performance, thus minimizing perceptions of favoritism towards family members.

Once the management plan has been created, it should be supervised that each one works according to what has been agreed upon and assign more tasks as the limitations and virtues of each one become known.

3. Clarify roles and responsibilities

Once the talents and strengths of the workers have been identified, roles and responsibilities must be assigned to each member. Although several people may be qualified for similar tasks, it should be specified how the responsibilities will be assigned by clearly drafting the job description to avoid future conflicts in decision-making.

In addition to individual commitment, the vision and mission of the business must always be created and constantly reminded by all members. This last point will foster an atmosphere of motivation and commitment, helping everyone work together to achieve a common goal and jointly overcome any differences that may arise.

4. Treat family members and non-family members indistinctly

It is very important to maintain a balance between family and business, so striving to keep the two areas separate, preventing problems within the family from affecting business decisions (and vice versa), is essential.

Also, avoid showing family members favoritism over other employees. Treat everyone fairly and equitably. Examples of fairness can be work schedules, salary increases, promotions, praise, and criticism... they must be handled in the same fairway, regardless of the employee's condition.

5. Focus on communication

This is one of the points to keep in mind since, although open and two-way communication is essential in any business, it will be especially so in a family business.

You should not fall into the idea that just because you are a family it is not important to talk about the expectations of each one, trusting that everything is taken for granted, in addition to the fact that it is evident that you will not always agree with everything.

However, establishing a culture of open communication from the beginning will prevent members from keeping their differences to themselves, which could cause imminent long-term difficulties. A good tip is to hold regular meetings to review progress, discuss differences of opinion, and resolve disputes.

Finally, although communication is essential, it is important to set limits. Talking 24/7 and mixing business with personal life can be really exhausting. Limit work discussions outside of work, or at least save them for the right time.