If you’re close to your family, it might seem a natural extension of your personal relationship to move into a business one. Many families choose to go into the franchise business together, to varying degrees of success.
Here’s what you should consider before mixing business with pleasure in your family.
Are You Able to Separate Work and Home?
Whether you invest in a family-run franchise with a spouse, a sibling, or a parent, you must consider how it will affect your personal relationship with that person or persons. It can be difficult to turn off your work mind after hours, but talking about your franchise over dinner may not be the healthiest way to nurture your personal relationships.
On the other hand, if you believe you can effectively separate your work relationship from that of your personal one with your family franchise business partner, you might be able to succeed.
Do You Have Similar Goals?
Everyone buys a franchise with a goal or two in mind. Some people want passive income they can earn without having to manage a store or restaurant full time. Others want to be involved in the daily minutiae. It’s important to know where your family members stand in terms of what they want out of a business.
For example: if you’re hoping that Cousin Sal will run your automotive franchise while you remain a silent partner, you should first check with Sal to see if that vision aligns with his goals. Otherwise you buy a franchise together and blame one another for not getting any work done.
Do You Complement One Another?
The best business partner is one who has strengths where you are weak. If you’re great at accounting and interacting with customers, a brother who excels at marketing and inventory management might be a great franchise partner.
It’s important to clearly define one another’s roles before you buy the franchise to ensure that each of you has his specific area to oversee, and to communicate trust in one another making executive decisions in each respective area of the business.
It’s important to note that family-run franchises don’t always work out for the best. Sometimes personal relationships get in the way of making smart business decisions, and family members grow apart as a result, and the business suffers. Think carefully before taking on any business endeavor with people you love, and have plenty of dialogue about expectations beforehand.
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