DIG Insurance & Business Magazine Fall 2019 | Page 4

GENERATION NEXT
Generation Next
EMPOWERING PERPETUATION
OF YOUR BUSINESS
BY: KRISTEN HAMPSHIRE
T
ransitioning a business
is an intentional process. If
If done well, perpetuation will
empower the next generation
to carry on a legacy.
Only 30 percent of family businesses
survive to the next generation—a stark
statistic when you consider the lifetime
that owners dedicate to nurturing their
companies, providing employment, and
giving back to their communities.
What does it take to perpetuate and thrive?
Why do some family-owned businesses
succeed while others stumble?
We spoke to three family operations that
are in the midst of accomplishing what,
based on that statistic, might seem like
mission: impossible. But perpetuation
is possible with intentional planning,
open communication, and a desire to
evolve and grow. Here are their stories.
SERVING UP A LEGACY
A month after Frank Hanna Sr. broke
ground to build Harpoon Hanna’s on
Delaware’s Fenwick Island, his son Wes
4
was born. He has grown up in the business,
as have his siblings Frank Hanna Jr. and
Leigh Hanna Wheatley.
that involving them in the business
would help them learn, grow, and take
responsibility in it.
“Frank Jr. started washing dishes and
putting garnish on plates by the time he
was 10 or 12, and Wes worked the T-shirt
stand,” Frank Sr. shares. “Leigh would serve
muffins, carrying the breadbasket around
the restaurant. That’s how we got them all
into the business—they were exposed
at a young age.”
Hospitality has always been a passion
for Frank Sr., who attended Florida
International University and graduated
with a hotel and restaurant management
degree. “I enjoy the restaurant business, the
excitement of opening up a new facility—
competing,” he says. “And the older I got,
I found out how much I enjoy making deals.”
Over the years, Frank Sr. has done
everything from mortgage lending for
hotels, buying water and sewer bonds for
developments, and operating apartment
complexes. His first restaurant opened
in 1974 in a leased facility, and his first
rental began with a single house he built,
that eventually grew into a large residential
apartment portfolio. “Later, I got into
single-tenant stores like Sheetz, 7-11, Royal
Farms, Rite Aid, Walgreens, Dollar General,
McDonalds,” he says of the properties
he builds and leases.
Frank Sr. realized from the beginning—
very early, when the children were young—
DIVIDING THE RESPONSIBILITIES
Harpoon Hanna’s is on its 37th year
in business, and Frank Sr.’s second flagship
waterfront establishment, Brew River
in Salisbury, MD, is in its 19th season.
The operations are carrying on now that
the second generation is at the helm. Each
child has his or her own niche, and the
“training” started young, working from
the bottom to the top of the organization.
Wes helps run the two restaurants, while
Leigh oversees operations at Brew River
and Frank Jr. operates Hanna Systems
Wealth Management, which handles estate
planning and money management.
Wes started as a young dishwasher, then
food runner, worked in the kitchen, and
served guests—he learned every part
of the business. By 18, he was a manager.
Because he knew he’d continue in the
family business, he enrolled in a hotel
and restaurant management program
at the University of Delaware. “I saw the