Around 70% of global family owned manufacturing firms fail after the first generation, over 86% fail after the second generation, and more than 97% fail after the third generation. Likewise, although Tanzanian family owned manufacturing firms increased by 50% between 1960’s and early 1970s, only 13% of them survived to 2015. The study aimed at establishing the sources of conflicts of interest stemming from succession planning and thus hinders the survival of FOMFs and how the proposed problem solving factors relate with the survival of family owned manufacturing firms. Descriptive quantitative research and cross-sectional field survey was employed by this study. The units of analysis were managers, directors and chief executive officers of the family owned manufacturing firms in Dar es Salaam region. The sample size was 384 respondents from 37 family owned manufacturing firms selected by simple random sampling. Multiple linear regression analysis was used for data analysis. External recruitment of the successor and incompetent successor were revealed as the major sources of conflicts of interest rooting from succession planning. Internal recruitment of the successor and successor factors-work fit were revealed as the factors for solving the conflicts of interest between the management and the principal which emanate from succession planning and were empirically tested. The findings show that internal recruitment of the successor has the significant effect on the survival of family owned manufacturing firms. Furthermore, successor factors-work fit has the positive and significant effect on the survival of family owned manufacturing firms.