Best franchise to buy during a recession
When one decides which business to start, they usually wonder whether their enterprise would survive economic downturns. And, it is a sensible thing to consider. The pandemic has shown that not every venture is immune to market turbulence. So, today many entrepreneurs wonder which business is recession-proof, and whether it would be able to thrive even in tough times. It is a we-known fact that franchises are typically more safe and have higher success rates than independent businesses. So, how to ensure that you choose a recession-proof franchise? Well, there are particular industries and segments that have proved to survive economic crises better than some. And, we will talk about them in this article.
What Is a Recession-Proof Business?
Recession-proof business is a venture that saves its sustainability and profitability even in the course of economic upheavals. Of course, it does not mean that they are completely unbothered by the complications of a recession. It just means that they cope better than some. But, there are also examples of companies that started operation through recession and achieved great results. Thus, there exist particular recession-proof industries that save their sustainability during tough times.
Recession-Proof Franchise Industries
Both large and small companies often turn to external consultants to navigate them throughout a recession. It can assist with business optimization, cost reduction, accounting, financing, logistics, and other operational aspects. So, business consulting is considered an industry that will certainly remain in demand.
Things tend to break down. Thus, it is more cost-efficient to repair items rather than purchasing new ones. So, franchises specializing in maintenance and repair have a stable flow of customers. Plumbing, hardware, automotive repair are just a small extent of the services that will remain in-demand.
In-Home Senior Care
The number of senior citizens keeps on increasing. And, most of them prefer to live at the comfort of their own home rather than certain facilities with assisted living available. So, at-home senior care businesses will thrive no matter the economic fluctuations.
The Covid-19 pandemic has changed the way people think about cleanliness. Today, cleaning franchises are relevant for both commercial and residential properties. It is the only way to sanitize and disinfect spaces properly and professionally. So, cleaning services are very much in demand regardless of any economic downturns.
Food and Beverage
There is no doubt that food and drinks are more of a necessity than luxury. People certainly cannot live without something to eat and drink. So, grocery stores, convenience shops, and liquor stores are establishments that are consistently needed. Franchise businesses specializing in the sale of foods and beverages thrive even during realities of a recession.
Today, almost everyone is in possession of a phone or a computer. Thus, technologies have a tendency to break or slow down. Therefore, maintenance is necessary. IT services franchises focus on repair and tech support. We live in the age of technology, so IT services will constantly be required.
TOP 7 Recession-Proof Franchises
Initial investment: $31,550 - $149,400
It is considered to be one of the biggest hardware store chains in the world. Ace Hardware specializes in the sale of tools and materials needed for home maintenance, and lawn and garden care. Today, there exist nearly 5000 franchised units operating throughout the globe.
Initial investment: $83,000 - $137,250
If you’re seeking a brand that cares, then it doesn’t get better than Homewatch Caregivers. The company specializes in granting at-home care to seniors, disabled, and people in need of post-surgery care. The brand has been helping people since 1976.
Initial investment: $111,500 - $143,100
The company was established in 2000. It quickly recognized the necessity of an extensive business venture that would offer a whole package of services. Today, Mr.Handyman does home and bathroom repairs, insulation setup, carpentry, etc.
Initial investment: $77,800 - $154,300
It is considered to be one of the giants in the business consulting industry. Nexterus services large and mid-sized companies. It grants consultation and assists with business optimization, logistics, operations, management issues, sourcing, and much more.
Initial investment: $109,550 - $142,800
The brand was established in 2004. TeamLogic IT focuses on provision of a wide array of technology-focused services, like software installation and maintenance, data processing, networking, and security. Franchisees receive certain training and ongoing guidance from the franchisor.
Initial investment: $56,500 - $162,460
It is a carpet and upholstery cleaning brand that has over 4000 franchised units across the world. It uses special chemicals and tools to ensure that the property is properly sanitized and cleaned. The parent company offers support and assistance with a franchise setup and business operations.
Save A Lot
Initial investment: $750,000 - $1,500,000
It is an American grocery stores chain that was established in 1977. Today, it has nearly 1200 outlets across the country. Thanks to constant discounts, fresh produce, and the sale of branded items, Save A Lot is adored by customers of all ages.
A recession-proof franchise does not necessarily guarantee success and sustainability during economic downturns. It just means that it has better chances at surviving any economic conditions. The success of a business venture depends on to a greater extent from an entrepreneur’s own abilities and franchisor’s assistance and guidance throughout the operation of an enterprise. So, select a franchise business wisely, and be prepared to spend lots of time, cash, and effort.
Are franchises recession-proof?
Through economic crises, a lot of businesses can face challenges, and some are even forced to close. However, there are certain businesses that show stability and success during such periods. Today, there are numerous recession-free franchises that allow entrepreneurs to enter various markets without facing high risks. These franchises are capable of withstanding economic downturns and remain profitable even in the face of significant difficulties.
Is it smart to open a business in a recession?
If approached carefully and firmly, you could acquire a franchise even in a recession. With the right amount of guidance and help from the franchisor and own efforts, entrepreneurs will achieve success.
What industries are hit the hardest by recession?
The jewelry, exclusive clothes, cars, and real estate sectors are usually more challenged during recession.