One reason many McDonald’s owner/operators choose the Golden Arches over other options is the ability to pass the businesses to succeeding generations through the Next Generation Approval program. But owners and their families can only truly enjoy this program and its stability when they also have peace of mind about the continuity of the business they have worked so diligently to develop.
A generic business succession plan simply is not enough for a McDonald’s franchise. When developing your plan to pass on the business to the Next Generation, you must be aware of and work within McDonald’s guidelines, including but not limited to considerations for future restaurant reinvestment needs and meeting the required financial guidelines. It is better to start planning early; we generally recommend the plan be started at least 5 years before target retirement date.
Fortunately, Sparkmon & Associates has many years of experience with McDonald’s licensing policies, including the necessary requirements for a Next Generation Candidate, so you and your children or other successors/buyers are prepared to make wise decisions.
Each situation is unique because the needs of each owner/operator and Next Generation Candidate are unique. We carefully review each store’s opportunities to determine how best to structure a transition while meeting your goals, complying with McDonald’s licensing polices and minimizing the tax implications of the transfer.