Those that have started their own business are familiar with the amount of effort involved in getting it off the ground and maintaining it as a viable enterprise and source of income to provide for themselves and their family. Something that not every business owner knows is the importance of estate planning and other strategies to ensure that the business can be an ongoing asset.

Different types of businesses may have unique considerations when engaging in succession planning. Home-based business may require a plan for a change in location, law or accounting practices will need to ensure that the next generation is properly licensed and prepared to manage the caseload. Franchises are a popular business enterprise but can post some unique complications due to the franchise structure and agreement.

Many franchise agreements require that the franchisor approve any transfer of a business from one franchisee to another. Sometimes this is as simple as someone from the corporate office perfunctorily signing a form, other times the franchisor may require that the new franchisee demonstrates that they are prepared and have the capacity to continue the business in a successful manner.

Beyond teaching the next generation the ins and outs of running your business, it is important to ensure that the legal transfer of the business is well prepared for. Whether the business is a restaurant franchise or a home-based dog grooming empire, it is vital that your estate plan includes the appropriate tools and tactics to protect your business assets for your successor.

Source: Entrepreneur, "How to Create a Succession Plan for a Franchise Business," Jason Daley, Dec. 2, 2011