The Institute for Family Business, UK reports that family firms account for a quarter of the United Kingdom’s Gross Domestic Product; employ about twelve million people; and contribute 125 Billion Pounds Sterling to the United Kingdom’s government through tax revenue.1. The Family Firm Institute INC. also reports that family firms account for two thirds of all businesses around the world; and that an estimated 70-90% of global Gross Domestic Product is created by family businesses.2. In the United States alone, family firms represent about half of the businesses, and it is estimated that just over half of all publicly listed companies are family-owned.3. Family firms range from small and medium sized entities to the large conglomerates that operate in multiple industries and countries. However, most family firms have short life spans, and it is noted that about 95% of family firms do not survive the third generation of ownership.4. This paper seeks to explain the family firm concept, advise on the legal structure and framework within the Nigerian Legal System, describe the evolutionary stages in the life cycle of a family firm, discuss some peculiar challenges faced by family firms and advise on ways to reduce conflict among its stakeholders.