Paolo Karganilla

5th Year
BSBA MM
Mr. Jay Ryan M. Cruz
Franchising

This case talks about a Family Run Franchise. It was said here that it was a blessing and a curse
at the same time. There are many advantage and disadvantages in running a family business.
Advantages are first, Stability: Family position typically determines who leads the business and
as a result there is usually longevity in leadership, which results in overall stability within the
organization. Leaders usually stay in the position for many years, until a life event such as
illness, retirement, or death results in change. Second, Stability: Family position typically
determines who leads the business and as a result there is usually longevity in leadership, which
results in overall stability within the organization. Leaders usually stay in the position for many
years, until a life event such as illness, retirement, or death results in change. Then, Stability:
Family position typically determines who leads the business and as a result there is usually
longevity in leadership, which results in overall stability within the organization. Leaders usually
stay in the position for many years, until a life event such as illness, retirement, or death results
in change. Long-term Outlook: Non‐family firms think about hitting goals this quarter, while
family firms think years, and sometimes decades, ahead. This “patience” and long- term
perspective allows for good strategy and decision-making. And last but not the least, Decreased
Cost: Unlike typical workers, family members working at family firms are willing to contribute
their own finances to ensure the long‐term success of the organization. This could mean
contributing capital, or taking a pay cut. This advantage comes in particularly handy during
challenging times, such as during economic downturns, where it’s necessary to tighten the belt or
personally suffer in order for the business to survive.
While disadvantages are, first, Lack of interest among family members: Sometimes, family
members aren’t truly interested in joining the family business, but do so anyway because it’s
expected of them. The result is apathetic, unengaged employees. In the public sector, employees
that fit into this category would simply be fired. It’s not so simple at the family firm. Next,
Family Conflict: Conflict is bound to happen at any firm, but add in long histories, family
relationships, and the kind of contempt that comes with familiarity, and the ante has just been
upped. Deep-seated, long-lasting bitter fights and quarrels can affect every single person within
the firm and can draw divisive lines. Because family members are involved, conflict can be more
difficult to solve and can result in difficult endings. Unstructured Governance: Governance
issues such as internal hierarchies and rules, as well as the ability to follow and adhere to
external corporate laws, tend to be taken less seriously at family businesses, because of the level
of trust inherent at family firms. Unfortunately, this can be gravely detrimental. And last,
Succession Planning: Many family firms lack succession plans, either because the leader doesn’t
have the desire to admit that he or she will, one day, need to step down, or because there is too
much trust in the family to work this out when it becomes necessary. In fact, because of close
relationships and long histories, it is of utmost importance in family firms that a strong
succession plan is in place.
With this, we have to consider things to avoid problems with running our own family franchise
or family business. Build a long-term vision for the family business that is compelling and gives
purpose to why you are doing this.
Consider the type of family business structure you want to build and test out whether it can last
three generations.
Understand what family conflicts are brewing, that need to be resolved with some professional
mediation and coaching.
618