Learn which franchise categories are recession-resistant or…”Covid-proof.”
When you stop and think about it, the pandemic has introduced many new terms to our vocabulary. Social distancing, contactless delivery immediately come to mind. But for the franchising industry, one term, in particular, carries a meaningful message, “essential.” When the lockdowns, shutdowns, and shelter-in-place orders went into effect, essential workers and essential businesses were allowed to continue operations. Essential businesses in the franchising world have traditionally been known by another name, recession-resistant. Amidst the backdrop of the pandemic, some industry insiders have even coined the term, “Covid-proof” franchises.
Entrepreneurs are drawn to franchising because of the proven business model, the built-in roadmap for success, and the help and support from the brand and other franchisees in the system. But now more than ever, candidates are searching for concepts that meet the definition of essential and recession-resistant. It’s a box that many potential franchisees must check before signing on the dotted line.
In the simplest of terms, the products or services offered by an essential franchise are based on needs—not wants. A down economy may present challenges to all businesses, but many are well-suited to weather any cost-cutting climate. Here are three prime franchise categories to consider:
Beauty & Self Care
When tough economic conditions descend, you still need a regular haircut, right? Salons, barbershops, and beauty boutiques typically don’t feel the pinch like the non-essential businesses do. And there are dozens of franchise choices that offer these services.
Home repair and automotive services are two other examples. If the need for these services is imminent, it won’t matter if the stock market and the S&P 500 are having a bad week. You’ll still get that plumbing repair or new alternator taken care of right away. When the need is essential to you, you’ll locate an essential business that can solve the problem.
Senior living and care franchises easily fall into the essential category. Not only is the need for this type of service ever-present, but the growth of this sector is also only going in one direction—straight up. As our population ages and healthier living habits contribute to longevity, this essential industry will continue to outperform many other business categories.
If you want to become your own boss and you need a stable, recession-resistant business model, FranNet of Houston and the Gulf Coast Region can help you investigate several options. With hundreds of concepts available, the three categories above are just the tip of the iceberg. Let’s find out if an essential franchise is the right opportunity for your lifestyle and ownership goals.
Click here to connect with me. I’m Diana Trondsen, FranNet Market President, Franchise Consultant serving Houston and the Gulf Coast Region of Texas. To schedule a no-cost, no-obligation appointment, you can call, email, or attend one of my upcoming webinars on franchise ownership. Together, we can find a perfect match for the business you were meant to own and operate.