Recession Proof Franchises
Recession-Resistant Franchise Sectors That Perform Well Even During an Economic Downturn
For those that have the capital and the will, investing in a franchise in any economic condition is a smart idea. For those who are looking to make a bullet-proof investment we always recommend investigating top recession proof franchise opportunities.
These industries prosper because they offer goods and services that people need no matter what the economy is doing.
Here are four recession proof franchise categories worth considering:
1. Senior Home Care
America is getting older. In fact, the U.S. Census Bureau predicts that by 2035, there will be more Americans over the age of 65 (78 million) then there are children under the age of 18 (76.4 million). Moreover, 87 percent of seniors 65 and over want to stay in their current homes and communities as they age, according to the AARP.
Senior home care allows for that by providing non-medical caregivers to come to seniors' homes and help them with everyday chores they aren't able to do themselves for a fraction of what senior living communities would charge. This includes meal preparation, escorting them on errands, housekeeping, caring for pets and more.
The senior home care industry has new brands popping up regularly, so working with an industry expert is advised to ensure that franchise candidates can find a system that is proven and a wise investment. Franchise owners can scale their hiring as they grow, allowing them to start small but add caregivers as their client roster and revenue grows.
2. Restoration Services
The economy has absolutely no influence on mother nature! Hurricanes will ravage our coastal communities causing wind damage and flooding. Lightning will strike homes and start fires. Toilets will flood, pipes will burst and foundations will crack whether we're in a state of economic prosperity or otherwise.
That's why companies in the restoration business will ALWAYS have customers. Their work is necessary because people want their lives back to normal ASAP. Plus, most of the work is paid for through insurance so the majority of the bill may not even fall to the homeowner.
3. Hair care
People may cut back on some personal grooming services, but hair care is rarely one of them. And even during COVID, it was the first beauty service people flocked to -- as soon as they could.
That's great news for people in the hair care industry, which is not only recession-resistant, but also unlikely to be outsourced or replaced by Amazon. Plus, hair care franchises are often built to be absentee/ semi-absentee models, meaning owners only spend 10 to 15 hours per week working on the business while managers and stylists work in the business. The semi-absentee model is preferred by people who plan to keep their day jobs while diversifying their assets smartly with a franchise. This is the perfect fit for those who want to enjoy more work-life balance and open multiple units without adding a ton of hours each time they open a new franchise location.
4. Automotive franchises
As of 2019, the average age of cars in operation was 11.8 years, a growth of more than two years in just the last decade. As Americans continue to hold onto their cars longer, auto repair will continue to thrive. Recent reports indicate that a high percentage of automotive repair is done by independent shops (vs. dealership service), many of these are franchises.
The automotive franchise sector is another great semi absentee choice for investors looking to diversify. These franchises also offer one-stop shops for franchise candidates interested in systems that perform lots of automotive services to the specialty automotive franchises that focus in one area, such as oil changes. Because many car services fall under the category of routine maintenance, franchise systems have technology in place to offer regular reminders to their customers about when it's time to bring their cars in for service.
Websites like Carvana are also making the purchase of used vehicles easier than ever, thus increasing the amount of these vehicles on the road.