Strategies for Brand Legacy Continuity
- Neha Lodaya
- Feb 13
- 3 min read
Shakespeare Asked, ‘What’s in a Name?’—In Business, Everything!"
In the business world, a Brand name constitutes the vital anchor to collate consumer experience with products. It is a valuable intangible asset which not only holds a market recognition but embodies the goodwill and trust of stakeholders, customers and employees.
The recent tussle between the Lodha brothers is an example where the family is locked in a legal battle over the use of the family name for their businesses. While the advantages of holding a “family name” as “brand name” are numerous, there are significant challenges that businesses need to navigate, especially as they grow and evolve. These challenges include leadership succession, global expansion, and managing family disputes especially surrounding brand usage which is the family name.
Succession planning in family businesses often focuses only on the equitable distribution of business verticals and family assets, but the fate and succession of the brand name—an invaluable intangible asset—often remains ambiguous.
A well-defined and meticulous succession plan for the Brand Legacy ensures clarity on ownership, usage rights, and strategic direction, minimizing conflicts and preserving its long-term value.
Some key strategies include:
👉🏼 Brand Usage Agreements / Clauses: Families can consider drawing up solid family succession arrangements, wherein clauses pertaining to treatment of brand usage and its governance can be structured in detailed. Such Brand usage agreements can help family members share a brand in an equitable and agreed proportion.
👉🏼 Separation of Ownership & Management - Separating management from ownership of brand is another recommended strategy. By distinguishing between family-led boards and business management, companies can ensure more professional oversight and reduce the risk of internal disputes.
👉🏼 Family Councils & Trusted Advisors - Depending on the size and complexity of the family, a panel of trusted advisors or family councils can create a framework for formal dispute or conflict resolution.
👉🏼 Non-Compete & Licensing Clauses - Incorporation of non-compete / non-solicit / confidentiality clauses for restriction in use of brand or preventing certain set of family sect to enter the already existing business for a certain period of time or an appropriate royalty fee arrangement for the use of brand can also be evaluated at the time of succession planning.
👉🏼 Family Governance Protocols - Design Family protocols, often referred to as family governance, which forms an essential framework that guide the operations and decision-making processes within family-owned businesses
👉🏼 Establish a mediation or arbitration processes - In order to avoid disagreements and prolonged legal battles, it is necessary to also incorporate an amicable dispute resolution mechanism.
👉🏼 Rebranding Post-Business Separation – If separation is inevitable, a strategic rebranding during such a turnaround event can revitalize the company’s image and attract new customers. It can also provide an opportunity to modernize the brand, align it with current market trends, and better reflect the company’s evolving mission and vision. However, rebranding should be approached carefully to ensure that it builds on the existing brand equity and does not alienate loyal customer.
The costs of such family disputes not only drain financially but also affect the family reputation at the helm. Hence, due care needs to be exercised while structuring these agreements, to avoid downstream challenges that may dilute the very purpose of the family arrangement / settlement exercise.
