How are you preparing your business for generational leadership transition or succession planning?

If operated successfully, many franchisees often own their restaurants for several decades. However, there always comes a point when it is time to step aside, either for retirement or to pursue other career options. In some cases, it may be to pass the franchise down to another member of the family, or in other situations, to sell the business to another group.

Franchise Update asked several restaurant franchisees about their succession plans. We reached out to five veteran operators, including four with 30 or more years of ownership experience, about this very relevant topic. They featured an interesting mix of responses, from family succession to promoting internally to selling to an outside group.

Despite some differing approaches to eventual leadership changes, their responses included a consistent theme. Current franchisees emphasized building a strong operational foundation, including a loyal customer base and relationships in the community. Regardless of the succession plan, franchisees said the next owners should be a good cultural fit and understand the business and how it operates. In each case, the existing franchisees want to establish consistency, set the future generation up for success, and continue their legacy.

In each issue of Multi-Unit Franchisee magazine, we ask the franchisees we profile a similar question about what kind of exit strategy they have in place. While it may involve an arrangement for family succession, their answers also include potential timeframes for leaving the business and plans and goals leading up to their exit. See the Franchisee Bytes section below to learn more about the considerations other multi-unit restaurant franchisees are making when it is time to leave the business.

Skip Russell

Company: Russell Restaurants
Brands: 5 Newk’s Eatery
Years in Franchising: 31

My son, Kyle, is the one who inspired me not to retire. He has been by my side watching my businesses since he was 15. After he graduated from the University of Southern Mississippi with a degree in restaurant management, we decided to do a Newk’s franchise as a true partnership. Succession planning is built in as daily mentorship. I’m focusing more on construction and site selection, while teaching Kyle how to manage people and run the business. My goal is to build the foundation of these first six units so that as we grow the business, he gets to grow as a leader who has earned the respect of our teams from the ground up.

Matt Langdon

Company: SHS Management
Brands: 6 Penn Station East Coast Subs
Years in Franchising: 32

I’m planning for succession by continuing to build strong relationships within the communities we serve. A loyal local following creates lasting connections with customers and helps sustain the business through challenging times. That community support has always been key to maintaining strong sales, even during downturns. When the time eventually comes for me to step away, I hope to pass the business on to the next generation and let my kids carry it forward.

Todd Rogers

Company: Viking Group Inc.
Brands: 17 Donatos Pizza
Years in Franchising: 31

While a generational transition within my family is unlikely, we have been intentional about building a succession strategy. We’ve built a strong and experienced operations team that brings a combined 75+ years of experience to the business. At the same time, we’re talking with existing franchise partners who would be a strong cultural fit and may be interested in growing through acquisition in the future.

Jim D'Aquila

Company: Virentes Hospitality Group
Brands: 5 Shipley Donuts, 3 Saigon Hustle, 1 Sweet Paris
Years in Franchising: 17

We joined the franchise system of all three restaurant brands within the last two years, so that lets us be incredibly intentional about our first hires at every level.

The strategy is simple: build a strong bench and promote it from within. While we will continue to recruit externally when needed, our goal is to depend on that less over time. We are intentionally developing team members and our future leaders to be people who started in the back of the house and worked their way up to shift leaders, AGM, GM, or roles in operations leadership. By investing in and growing our own talent, we create leaders who understand our standards, culture, and way of operating from the very beginning. That consistency is critical as we scale.

We believe the best leaders are developed from the ground up. Many of today’s most successful executives started in entry-level roles, and that philosophy is how we are building Virentes Hospitality Group for the long term.

Tom Kazbour

Company: Kazbour Operating Group
Brands: 63 Hungry Howie’s
Years in Franchising: 42

In our family, opportunity is meant to be shared. That’s how I was raised, and that’s how we’ve built the business. My brothers and I grew by trusting each other completely – no ego, no scorekeeping, just discipline and commitment.

Today, I approach succession planning the same way. I invest heavily in people who grew up in the stores with me; team members who started as kids and earned their way into partnerships across markets like Pensacola and Panama City. I believe in putting real ownership in the hands of operators who live the business every day. That’s how you build loyalty, stability, and long‑term generational success.

Franchisee Bytes

What kind of exit strategy do you have in place?

I anticipate exiting within the next year. We started planning my exit five to six years ago. My kids have been involved in the business for more than half their lives, and from the beginning, the plan has been to have them carry on the legacy.
-Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s

My exit strategy focuses on securing the long-term success of the business and our team, ideally passing leadership to those who have helped build it while I transition to mentoring and the next chapter of life.
-Lisa Starnes, Franchise Owner, Starnes Holdings, 8 Captain D’s

I plan to keep the business in the family and gradually transition leadership to the next generation. Both of my daughters want to be in business. My older daughter, Emma, recently graduated from college and is starting as an assistant manager at the store in Gastonia, North Carolina. The plan is for them to take over eventually, but they will have to work their way up through each level.
-Matt Davis, President, The Davis Restaurant Group dba the Honey Baked Ham Co., 22 Honey Baked Ham

Once our kids are all in or have completed college in about 10 years, we’d like to move on from owning our shops.
-Carrie and Josh Ayers, Owners/Operators, 6 Playa Bowls

Down the line, we would hope to provide operating ownership to our key partners who embody entrepreneurship and seek the American dream.
-Phong Huynh, Co-Owner, Fuego Investment Inc., 30 El Pollo Loco

My brother and I have a strong family and see our kids taking the reins of the business once we decide it is time to hand them over. We would likely play a role that is more toned down, but I don’t see us slowing down any time soon.
-Andy Cabral, CEO, Vigario Management, 25 Dunkin’, 9 Baskin-Robbins

Exit? We’re just getting started!
-Michael Kulp, CEO, KBP Brands, 828 KFC, 119 Arby’s, 85 Sonic, 56 Taco Bell