Creating a Legacy with your Senior Care Franchise

Senior Care Franchise ownership offers a great deal of benefits, including a practiced and proven system, but it’s also your home care business. You are building wealth, equity and a legacy for yourself and your family. You have the options and opportunities to:


Transfer ownership of your home care franchise – you can “will the ownership rights” to your children or spouse to ensure their future security if you are not there to provide for them. One-third of the biggest Standard & Poor's companies are family businesses. One of the biggest strategic advantages a company has is bloodlines.


1. Give the family a reason to continue the family home health care franchises business Motivate the family to participate. Is there enough profit potential to attract and retain family members? Are the successors sufficiently comfortable about running the business in the owner’s absence? Have they been given the freedom to feel like they are a part of the business’s success — not merely employees of the owner’s personal empire? If the business is to stay in the family, it’s important to move from an iron fist to a velvet glove management approach.


2. Develop a management team: The value of the senior care franchises is merely blue sky that vanishes when the owner is gone. I’ve seen this happen with firms where the senior generation is the rainmaker and the kids are the doers. Family members were never developed as senior management, so even if they want to continue the business, they’re not qualified to run it.


3. Structure a business succession plan: Even in a family business, there is a compelling reason to have a legally binding succession plan. I recently had someone tell me, “The buy-sell was never executed, but the son is ok with the plan.” My response was simply, “Yes, but is his wife ‘ok’ as well?” Anything less is both unfair to the family and a recipe for family discord. There are numerous structures that allow the owner to maintain control, be guaranteed flexibility and yet lock in a succession plan. Concepts like “wait-and-see buy-sell” and “no-sell buy-sell” offer ways to create a succession plan without sacrificing control and adaptability.


4. Fund the business succession plan: One of the owners died, became disabled, was divorced or had personal credit problems. And the family business paid the price. They had to liquidate, sell the business, or bring in non-family partners. Life insurance, disability insurance, sinking funds…all are important ways to assure liquidity for ongoing operations.


5. Wealth replacement for other family members: There is more to a family than the family business. Owners need to be sure that those family members who are not involved in the business are still taken care of. For example, a non-involved spouse will want ongoing income if the owner- spouse dies. If some of the children are involved with the business and some are not, it simply will not work to divide stock equally among the siblings..


6. Have a successful business: Targeting success may sound obvious, but this is not a given with a family-owned business. Sometimes the family business makes enough that the owner pulls down excessive compensation, or non-working family members are placed on the payroll.


Let a Senior Care Franchise Broker at www.Top10seniorcarefranchises.com take you through the steps to make sure that you consider not only what you want to do but how it will ultimately build wealth for your entire family.