Lately I have seen the saying ‘Recession Proof Franchise’ going around. So what exactly is this? Plus is there such a thing? It would appear to be the complete remedy in the existing hard times if there was in reality a franchise system that was genuinely ‘recession proof’.
I think a more exact phrase could be ‘recession resilient franchise' as I have yet to come across a business that is full proof (although please keep me informed if you come across one as I’ll be first in line ) and in reality the task falls on the owner of the franchise business as to whether it succeeds or fails, indifferent to whether it is franchised or non-franchised.
Types of franchise system that fall in line with the expression, ‘Recession resilient franchises’ are by and large ‘must have’ services and product provisions. These types of franchise business often withstand the storm well as they are viewed as non-optional or necessary type things as oppose to extra products or services that could be good to have but, while money is stretched, are not compulsory for living.
‘Must have’ class franchise opportunities generally fall into two categories: business-to-consumer and business-to-business:-
- Business to Consumer
These class of businesses deal with, for example, necessary domestic services such as plumbing repairs, essential home maintenance, cleaning services and similar.
- Business to Business
Business to business covers, for example, franchise business cost reduction and commercial cleaning services. These offer good in view of the fact that their distinctive marketplaces can potentially be what some are talking about as ‘recession proof’… or ‘recession resilient’ as i rather to term it.
This doesn’t inevitably rule out franchises which can potentially be considered outside of this range. There may well of course be further types of franchise business that don’t fit into the usual ‘must have’ services but appear to be doing well in the downturn as their product or service is very attractive at this moment. This is worth thinking about when performing your enquiries so as not to miss out on what may well currently be a good business opportunity.
Ultimately, when choosing a franchise business, one of the best measures to how recession ‘proof’ or ‘resilient’ a franchise system is, is their established franchisees. When researching a franchise, regardless of whether its its appearance is to be ‘recession proof’ or otherwise, make certain you do your proper research. Get a list of a few various franchisees from the franchisor you are considering and take time to speak to them about how their franchise business is working for them in the light of the recession. This will provide you with valuable understanding into how well the franchise is performing in what is one of the toughest times in history for businesses worldwide.