When considering any franchise, one question crosses the minds of most potential owners: Is this a recession-proof franchise? This is a good question to ask, especially now.
Since the pandemic, the United States economy in 2020 shrank by the largest amount in almost 75 years. It may not seem like the best time to start a franchise business. However, that all depends on the type of industry you enter. Some franchises thrive in economic downturns — which makes them seemingly recession-proof.
If you are looking to invest in a recession-proof franchise, here are five examples worth a look at.
Recession-Proof Franchise #1 – Health Care
While other industries might need to be on life support during a downturn, healthcare-related businesses typically flourish. People will continue to get sick or injured and find themselves in need of medical care. The growth of the urgent care sector of the healthcare industry is especially notable — as more people in good economic times or bad — are turning to these more accessible and affordable options in medical care.
Recession-Proof Franchise #2 – Cleaning Services
People are worried about virus transmission these days, creating the need for cleaning and disinfecting anywhere people gather. Franchise cleaning businesses are witnessing a growing demand for routine deep-cleaning and special disinfecting services, both from the commercial and residential sectors.
Recession-Proof Franchise #3 – Retail Consignment
Businesses that focus on selling used clothing and other second-hand goods are another great example of a recession-proof industry. When the economic climate is uncertain, people trim down their discretionary spending on items such as clothes, shoes, and toys. To save money, people turn to thrift and consignment stores to shop for the things they want — even if they are not new.
Recession-Proof Franchise #4 – Automotive Repair
Auto repairs are an absolute necessity regardless of the economy. However, during a recession, people keep their cars longer, and older cars need repairs. The last thing people want to do is make a high-ticket purchase like a new car.
Recession-Proof Franchise #5 – Home Repair
Like auto repair, people try and save money by maintaining what they already have — this includes their homes. The home improvement industry has always been considered recession-proof by experts since people tend to spend money on home repair services even during an economic downturn. People tend to choose home renovation or upgrade rather than consider selling and moving during a recession.
Of course, just entering into a recession-proof industry does not guarantee your success. You need a franchisor with knowledge and experience to guide you through the good times and the bad.
American Family Care, the nation’s leading provider of urgent care and accessible primary care, is that franchisor. Even with growing demand thanks to the pandemic, AFC supported franchisees in a variety of critical ways, including adding a system-wide telehealth portal to help clinics continue seeing patients while opening opportunities to increase the number of new patients. AFC also secured the first rapid COVID-19 tests for its franchise locations.
These are fantastic examples of how AFC is not resting on the recession-proof designation given to the healthcare industry — the company is constantly working to keep the label, at least where AFC is concerned.
Click here to find out more about how to become a franchise owner with the nation’s preeminent providers of urgent care and accessible primary care.