In March 1947, the business was turned over to Zehnder's children. The business became a corporation, and in the 1950s the Zehnders bought Fischer's Hotel located across the street, renaming it the Bavarian Inn in 1959. In 1955, William Zehnder Jr. (manager of the Bavarian Inn) and Edwin Zehnder (manager of Zehnder's Restaurant) purchased the interests of Zehnder's, Inc. from their brothers and sister. They re-decorated the restaurant in a Bavarian theme after visiting Bavaria on vacation, and the annual Frankenmuth Bavarian Festival began during their week-long grand re-opening celebration.