Recession-Resistant Franchise Concepts – An Explainer

We’ve discussed the possibility of a looming recession in the U.S. several times in the last few weeks and, by the end of this month, we should have an answer one way or the other. That is, whether or not our current conditions meet the technical definition of a recession – two consecutive quarters of negative growth. The economy did shrink, albeit only 1.6%, in the first quarter and the Bureau of Economic Analysis (BEA) should be providing Q2 data before the end of this month.

Assuming we do head into a recession, the franchising industry likely won’t suffer the same consequences as other business sectors. Interest in entrepreneurship tends to rise sharply, especially following corporate downsizing – one of the most common responses to a sluggish economy. But what’s more, franchising’s marketplace includes thousands of concepts deemed “recession-resistant.” But what does that mean, exactly? For a closer look, let’s discuss…

One of the simplest, and most concise, definitions of a recession-resistant franchise opportunity is provided in a 2018 blog from the Small Business Association (SBA). To meet this definition, the business or service provided must be based on a need – not a want – but a need. So just imagine – what is a product, or a service, that consumers will always need, regardless of the economic circumstances? Something as simple as getting a regular haircut comes to mind. Perhaps that’s why well-known franchisors like Great Clips and Sport Clips both rank in the top-25 of this year’s Franchise 500 list from Entrepreneur?

Here are some additional franchise categories that meet the definition of a recession-resistant business opportunities:


Whether it’s your home or automobile, both require several forms of upkeep and/or maintenance to keep operating in top condition. When the AC goes out – and of course that’s possible with either a home or car – consumers tend to take care of that need right away. Vehicles do break on a regular basis, but the franchise industry is loaded with automotive-related business concepts. Homes are also susceptible to floods and fire damage that can occur at any time. There to the rescue with clean-up efforts are multiple franchise opportunities available in the restoration and remediation business.

Senior Care

The market for senior care businesses is robust – and predicted to continue growing as the U.S. population over 65 increases at a rate of 10,000 per day. According to Grad View Research, the assisted living facility market alone is worth more than $75 billion, coupled with a CAGR of 6.4% over the next decade. If you’d like to become a senior care business owner, franchising offers near unlimited options.

Good Eats

The human need for caloric intake has yet to find a substitute, and it’s likely that even if an alternative were to be discovered, nobody would be interested. The food and beverage sector takes up an immense cross section of the franchising industry as a whole, with quick-service restaurants (QSRs) alone responsible for 24% of the overall market. If you need a tried and true recession-resistant business opportunity, you’ll most certainly find a worthwhile option in the food and beverage category.

It’s yet to be seen whether uncertain economic times are inevitable in the U.S., but if and when a recession does occur, the franchising industry is well-positioned to weather the turbulence. To review the available inventory of our franchise concepts, be sure to visit FranNet’s brand directory on the web.

If you’re interested in pursuing a recession-resistant concept, FranNet can become your willing partner and navigator, dedicated to helping you find the right match for your personal outlook. Getting started is simple and involves setting up a no-cost, no-obligation appointment with one of our qualified FranNet representatives. Not sure what type of business you were meant to own? That’s fine, too – you just need to reach out and talk with one of our franchise experts today! Together, we can find a business opportunity that aligns with your lifestyle and income-oriented goals.

Jul 26, 2022