Wayne states that he can foresee a day when the business will be passed onto a third generation of Freysingers and maybe even a fourth. Millard has several children and is planning on more (eight total, to be exact).Wayne is confident that Millard’s son, Tom, will follow in his father’s footsteps into the family auto dealership and he hopes there’ll be more. A family business is a legacy to take pride in and pass along to future generations.

Well, Wayne Freysinger’s dream has come true. In 1998, Millard Freysinger is now President of the Freysinger Corporation with Tom Freysinger as Vice President and Gary Freysinger as Secretary/Treasurer. One other of Millard’s brood, Mary, has also followed her father into the business and has been top Pontiac salesperson for years. The dealership is no longer located on Bridge Street in New Cumberland, but moved to a sprawling new facility on the Carlisle Pike in 1988. Rows of gleaming, multi-colored GM cars stand in ranks in front of the dealership’s main building, casting chrome reflections over the landscape. Wayne would be proud.

Gary Freysinger, Service Manager, was kind enough to sit down and talk with me for awhile about the pros and cons of running a family business. He stated that he’s very proud to be a part of a third generation business and has hopes that the dealership will continue in the family through either his children or those of one of his siblings. He stated he would never force his children to continue the business, however, it only engenders frustration and resentment in the children and isn’t worth the struggle. Gary felt his father had always left the door open, neither encouraging nor discouraging him or his siblings to work at the dealership. Although, all of them probably did at one time or another, even if only for the summer school breaks or when they were home from college. Gary felt that his father took the right pathway in supporting his children’s decisions for vocations, no matter what they were. He said "it’s either in your blood or it’s not. I think I always knew I wanted to enter the dealership just as Tom did."

Gary stated that being a member of a family business can be trying at times because you can’t help but get tired of each other’s company occasionally. He stated that because they do see each other so much and because they all have separate interests, they do not spend very much time outside the dealership together. “For me,” he said, “it’s either work or kids.” But, when asked if he felt if that had dampened their familial relationships at all, he quickly denied it, stating that their family is very close. “It’s just that enough is enough. There’s such a thing as spending too much time together.” Gary has seen other family run dealerships, however, where personality conflicts have ripped the dealership apart. There’s no such problems at Freysinger, but they are a deadly trap for those families that do not have similar visions for the future of a business.

There are very positive aspects, however, about a family business. There’s a satisfaction and pride that goes along with carrying on a family name. There’s also a name recognition that helps them in the community and helps them with customer relations. There are some people that are third generation customers who’s family have been doing business with the Freysinger dealership from its beginning. You can’t buy customer relations like that, they can only be built. Too, there’s a trust given to their dealership that might not be given to a larger business because they are family-run. Gary stated that “bad dealerships have unfortunately clouded people’s perceptions of auto salesmen and given the whole business a black eye.” However, “customers know that if they have a problem, they can come in and deal with one of us as people because we’re so prominent in the community and that we’ll always be here.” It helps.

When asked to pass on some tips for those considering bringing in a family member, Gary stated that communication is the most important thing you can have. The chain of command must be very clear from the start as well as where everyone’s responsibilities lie. Like any other business, a clear job description can be a lifesaver. Too many times, progeny are brought into a family business and not given a specific job. They have no areas of responsibility and so spend their days sitting around doing nothing. That’s demoralizing for the other employees and can lead to a lot of tension and frustration. “Accountability is essential,” states Gary. A sibling or child should never be treated any different when it comes to being held accountable for their areas of responsibility than any other employee. To do so merely encourages sloth and employee aggravation. Gary stated that it has helped that he and his family members all have different areas of responsibility where there isn’t much crossover. He runs the Service and Parts Department, Tom runs the Sales Department and their sister, Mary, handles her own auto sales. Millard handles the rest.

Aside from such issues, Gary insisted that you cannot start planning early enough for the actuality of succession. The line of succession should be established early so that everyone understands what is going to happen. Also, a good lawyer is needed since Pennsylvania law is not kind to small businesses that are passed to family member. Gary stated that when the anti-trust laws went into effect, they were useful for breaking up large conglomerates, but it looks like the makers of the law hadn’t considered the impact on small businesses. When a family member dies, the tax is assessed on the value of the entire estate including the land, buildings and inventory. That can be a huge financial burden for the owner’s survivors and many small businesses have had to shut their doors due to not being able to meet the tax burden. Governor Ridge has been working to change some of those laws and has been helpful in getting some relief for small businesses, claims Gary. A new law has been implemented helping farmers to pass on their farms, but so far, the other small business owners still have to struggle. There is only a certain amount of “gift” money or property that can be transferred annually without having it taxed. A good attorney can help you structure your business in such a way as to cushion the shock of the taxes as much as possible.

Finally, Gary stated that he knows it’s hard to talk about succession, but it’s necessary. He said it makes him horribly uncomfortable even to think about it because you’re talking about the demise or disabling of someone you love, respect and who has poured their life into a business. It must be done, however, and no matter how uncomfortable it is for everyone, to wait too long is to court disaster.

So, for those of you considering passing on a family business, take Gary’s advice to heart. Get yourself an attorney, separate and delineate everyone’s responsibility and expect no less of your family than you do of any employee or even yourself. Then, when MODE™ Magazine does it’s next forty year review, your business can be featured as a third generation family business along with the Freysingers who will probably still be around selling personal hover crafts (since cars will probably be obsolete).

See you in 2038.