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How to Choose a Recession-Proof Franchise

All USA Franchises August 09, 2019
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Owning a business of your own can be a rewarding experience. Financial security, the joy of being your own boss, and building something solid for your family are just some of the benefits of owning a franchise. One of the enemies of the business world, however, is the state of the economy. Recession can be a business owner's nightmare. During a recession, when many consumers are more frugal, many businesses suffer. The best way to avoid becoming a victim of recession is to find a recession-proof franchise, but does such a thing exist? Are there franchises that do well in an unsteady economy?

Recession Proof Franchises
First of all, no franchise can guarantee absolute stability during a recession. Instead of saying "recession-proof franchise," we could say "recession resistant franchise" or we could say "nearly recession proof franchise." There's always a risk in business. That's the nature of the beast. Anyone who knows anything about running a business knows that risk is a part of any venture, but there are things you can do to minimize that risk. To find a franchise that has the potential to succeed, even during a recession, you need to start with one basic fact. Businesses that have the potential to do well all the time, even in a tough economy, are businesses that satisfy a need, not a desire. This means you have a product or service the consumer has to have, not something they want. In short, "luxury" items and services run the risk of not holding up in an economy that isn't doing well.


What Are Products and Services Consumers Need?

When you think about services and products that consumers need, one of the top examples is the automotive repair industry. Automotive franchises can fare well even in a franchise. That's because consumers need to have a car that runs. Vehicles represent a major part of our lives. It's how we get to work, how we buy our groceries, how we function on a day to day basis. Not everybody can, or knows someone who can fix a car, or even simply do regular maintenance, such as oil changes, checking and filling fluids, etc. For this reason, automotive franchises typically continue to do well in poor economic circumstances. This means that having an automotive industry based franchise might be a very good choice when you're looking for a recession-proof franchise.

Franchises that involve restoration can be a good choice as well. While consumers may not consider making changes to their homes that aren't required, such as add-on rooms and re-decorating, restoration services for floods, fire damage, and other situations where the need arises to repair or restore a home are still necessary. A restoration franchise could do well during a recession by specializing in services consumers and business owners need regardless of economic times. If a home or business is damaged, it is important for the party involved to get back on track as quickly as possible, which means getting repairs done when the home or business is damaged accidentally or by Mother Nature herself. These repairs and restorations are necessary, so consumers need to have them done whether they want to or not.

As long as we're talking about repairs, franchises that offer repair services, such as appliance repairs and plumbing services can be recession proof. Rather than buy a new dishwasher, the average consumer may opt to fix an old one when they are trying to save money during a tough economy.


Any franchise that provides products or services that are staples, such as grocery stores, clothing stores, or medical services can continue to thrive during a recession. Fast food, however, is not considered a "need" when talking about food. Fast food and other types of dining establishments can see a decrease in business during tough economic times because consumers tend to view going out to eat a luxury, not a need. They may need to eat, but consumers don't need to do it during a recession.

Recession Proof Businesses
Any children's franchise that has to do with children's education or childcare do well even when the economy isn't good. In the case of childcare, hard economic times force many families to have both parents in the workplace, making it even more necessary for childcare services. Parents are always willing to spend money on their kids' education because this isn't considered a luxury item.

Cleaning services can be recession proof, but not so much on the residential side. Commercial cleaning franchises are a different story. Many industries are required by law to maintain a certain standard, so even if budgets are tight, commercial janitorial and other cleaning services are still in demand.

How to Choose a Recession-Proof Franchise

The franchise opportunities we discussed above are just some of the franchises to consider that are recession proof. When you are ready to purchase a franchise and you're looking for a recession-proof franchise, try thinking outside the box. Make a list of products and services you personally consider necessary even when financial times are tough. What products and services do you allot money for during these times? Those are the kinds of franchise opportunities you want to seek out when you're ready to buy a franchise.

Think Outside the Box
All USA Franchises can help. Our mission is to list all of the 3000 plus franchises available in the United States, giving you the largest selection of franchise anywhere, including recession-proof franchises. At All USA Franchise, we bring together investors, franchisors, and franchisees in an effort to make profitable and lasting business relationships. At All USA Franchises, Franchisors can list their franchises free of charge, which means anyone looking for a franchise can be sure they are seeing all of the available franchise opportunities, not just those that have paid for prime listings. We want you to have all of the latest accurate information, not just some of it. At All USA Franchises, you can search franchises by industry or search franchises by investment, which means you can narrow down your search to only the franchise opportunities that fit your criteria. This is also a great way to look for those franchises that might do better in a recession-proof environment.

Whether you're looking for an automotive franchise, a home-based franchise, a Health and Wellness franchise, or an education franchise, you'll find the absolute BEST business franchise listings at All USA Franchises. There's no better way to start looking for your future than to browse the franchise opportunities at All USA Franchises. Browse our website, do a little research here, then browse the opportunities at All USA Franchises to find the franchise that fits your criteria. It's always FREE and always available. Start your search via the "start your search" button today.

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