Periods of economic uncertainty can cause concern for many consumers. While no business is 100% recession proof, there are industries that have historically been able to thrive during these trying times.
If you haven’t read our blog on the ‘Top 5 Recession Resistant Industries’, check it out here.
Choosing the right franchise opportunity that aligns with these industries is an essential step to
solidifying your path to entrepreneurship!
Check out our picks for the Top 10 Franchises that thrive in recessions…
1. Pinspiration
Initial Franchise Fee: $33K
Pinspiration is the ultimate DIY craft studio that removes common barriers to creativity and makes it easy for everyone to unleash their inner artist! Perfect for birthday parties, date nights, or simply having a fun and creative day out with friends, Pinspiration is an enriching real-life experience that helps you connect with others through the process of creating.
When a whopping 78% of millennials would choose to spend money on a desirable experience or event over buying something desirable, it’s worth keeping this in mind when thinking about investing in a franchise. Millennials will still spend on real-life experiences, regardless of the state of the economy!
Pinspiration is the perfect franchise for you if you have a passion for crafting and a love of people and community, You’ll join a supportive community that offers some of the best resources in the industry. Plus Pinspiration offers extensive in-person, on-site training for every aspect of your launch and operations, and a 1,200 page operations manual covering every aspect of the business. So whatever your problem or query, Pinspiration has got you covered.
Find out everything you need to know about Pinspiration Franchise here.
2. MerryMaids
Initial Franchise Fee: $37,500-$51,500
MerryMaids is one of the largest cleaning franchises in the United States. Delivering over 2 million services a year (yes, you read that right!), MerryMaids uses advanced cleaning processes and expertly trained team members to keep customers happy and coming back for more more.
The great thing about a cleaning franchise is that they are perfectly recession-proof because…there’s always cleaning to do! Businesses in particular are more likely to cut back on in-house cleaning staff during a recession, creating more opportunities for commercial cleaning companies. So, if you’re thinking of starting a business, you might want to consider the cleaning industry – it could be a recession-proof way to ensure your success.
Some of the benefits to becoming a franchisee with MerryMaids are:
- You’ll receive a pre-planned marketing launch including local PR, google ads, and a leaflet drop. This is targeted directly at the key customer base, so you don’t have to stress about a marketing plan for your launch.
- You will be given a complete starter pack to help you get off the ground running. This pack includes products, equipment, uniforms, stationery, and literature.
3. FastSigns
Initial Franchise Fee: $49,750
FastSigns make custom signs, banners, and graphics for your business. But the truth is, they’re a lot more than a business that makes signs. They’re a team of designers, planners and marketers that work closely with clients to help convey their message, promote their products, and get the word out about their brand. FastSigns has been recognised as the #1 franchise in the industry by Entrepreneur magazine for the last 6 years, with franchisees earning on average upwards of $789,878 in revenue annually. Not bad!
But how might a business like this hold up during a recession? Companies look for ways to cut costs during a recession, and one of the easiest ways to do this is to reduce marketing budgets. However, this can be a mistake, as reducing marketing spend can lead to a decline in sales. Not good during a recession! As a result, many companies end up increasing their advertising budgets during a recession in order to stay afloat.
Banner companies are well-positioned to take advantage of this increased demand, as they offer relatively low-cost advertising solutions. In addition, banner companies often have long-term contracts with businesses, which can provide a stable stream of revenue during tough economic times.
4. Ace Hardware
Initial Franchise Fee: $5,000
Ace Hardware, like the name suggests, is a hardware store. They have over 5000 stores around the world. The majority of these are independently owned and are operated by local entrepreneurs. They offer a range of tools and services for you to fix and maintain your home.
During a recession, people are more likely to try to repair or improve their homes themselves rather than hiring expensive contractors. This uptick in DIY activity can lead to increased sales for companies like Ace Hardware.
Recessions also mean that people are spending more time at home and have more free time on their hands. As a result, they may be more likely to take on projects around the house that they otherwise would have put off. Whether it’s fixing a leaky faucet or painting the living room, people often turn to DIY projects as a way to pass the time and save money during a recession.
5. Kiddie Academy
Initial Franchise Fee: $65,000
Kiddie academy was created to prepare your children for school and for life. They have been on this mission for over 40 years. Becoming a Kiddie Academy franchisee opens the door for amazing financial performance. Kiddie academies that have been open at least 24 months have reported an average annual gross revenue of $1,632,080.
Entrepreneur has called child care “one of the top 5 franchise industries to watch”, so it’s definitely an industry you want to be involved in.
Early learning centres like Kiddie Academy have a unique opportunity to thrive during these challenging times. While families during a recession are looking for ways to save money, the reality is that childcare is a vital necessity for working parents. Early learning centres that offer affordable care and flexible payment options will be able to appeal to families who are feeling the pinch.
6. HomeSpark
Initial Franchise Fee: $50,000
HomeSpark offers non-medical, in-home care services for you or your loved one. They offer services such as:
- Companionship
- Personal care
- Meal preparation
- Transportation
- Household duties e.g cleaning
- Respite care
HomeSpark is committed to honoring those who have served their families, communities, and country. If you share these ideals, then become a franchisee! The senior home care market is expected to grow to an estimated $225 billion by 2024, so it’s an industry worth investing in.
When people are worried about job security and their financial futures, they often cut back on luxuries but still want to provide the best possible care for their loved ones. That’s why home care services like HomeSpark often see an increase in business during a recession. Primary caregivers may need help or temporary relief when they’re feeling stressed about money and/or looking for another job, so the demand for care services goes up. And since many care providers offer affordable rates, they’re able to weather the storm of a recession better than most businesses.
7. Voodoo Brewery
Initial Franchise Fee: $75K (single-unit)
Voodoo Brewery is an employee owned brewing company based in Pennsylvania, United States. They create award-winning beer and are invited to sell their products at festivals all over the world.
Voodoo Brewery have built a global following who simply can’t get enough of their beer, so as a franchisee you’ll always have customers. They spent 10 years perfecting their franchise business model and have successfully replicated it across 7 test markets.
Some of the benefits to becoming a Voodoo Brewery franchisee are:
- Their European beer hall design lets you operate with 6 staff or less, which means increased profit and decreased stress.
- They have an ‘anti-franchise’ motto, which allows you to move away from corporate rules but still be in the safety of a large franchise organisation.
Industries related to beer and spirits tend to thrive in recessions. Beer has a low relative price point, so it is seen as an ‘affordable luxury’. In fact, people may even drink more beer during tough times. It’s also an opportunity for smaller breweries to gain a larger market share as people look for cheaper beer alternatives during tough times.
8. Kumon After School Math & Reading Programs
Initial Franchise Fee: $2,000
Kumon was built to help children get the best start in life. Their colourful worksheets introduce children as young as 3 to important math and reading skills. Kumon is a self-learning programme that gives kids critical thinking skills and the mindset to learn new materials independently.
Kumon is also the #1 education franchise in the world! They have been first in that category on Entrepreneur’s Franchise 500 list for 21 consecutive years, so you know it’s a franchise you can trust. Kumon offers ongoing support that starts from day one and never ends.
So, what about during a recession? Education is an opportunity to give children an advantage in life that is well worth the price, even during tough economic times. What sets Kumon apart are the low franchise fees, ongoing support provided, and their unique “Kumon method” which is not tutoring, but a self-learning program that advances your child’s abilities in the classroom and life.
9. Civil Axe Throwing
Initial Franchise Fee: $35K
Civil Axe Throwing was built with fun and safety in mind. It’s a great way to relieve stress! And it’s fun for almost any age. This activity is perfect for helping you relax after a long day or hosting a team bonding event.
Civil Axe throwing believes in giving back to the community, which is why they started the community outreach programme, ‘Axe of Kindness’. This allows you to hold an event at one of their locations to raise money towards your specific cause or need.
If you’re looking to join a franchise that was created to exceed people’s expectations, is an enjoyable experience, and has limitless potential, then look no further than becoming a Civil Axe Throwing franchisee. Civil Axe Throwing offers support every step of the way through your franchising journey.
Perhaps surprisingly, activities such as axe throwing are exactly the sorts of things people need during hard times to switch off, relax and de-stress. That’s why businesses like Civil Axe Throwing are perfect. People may be less likely to take vacations or go out to restaurants, but they still need to find ways to relax and escape from the everyday grind. So if you’re looking for ways to make money during a recession, consider stress-relief activities.
10. Painting with a Twist
Initial Franchise Fee: $25K
Painting with a Twist was created with one thing in mind: fun! Plain and simple. It’s all about connecting with friends over a glass of wine, your favorite snacks and night of laughs…plus learning how to paint! It was founded by two women with the aim of rebuilding their community after hurricane Katrina. They recognised that people need to have something to look forward to in their lives during this difficult time. Painting is an incredibly cathartic activity…oh, and the wine helps too!
As mentioned above, recessions are damaging to people’s mental well-being. During this time people are actively looking for an escape to distract themselves from their daily lives. Experience-based activities and businesses like Painting with a Twist give people the opportunity to do just that – all at a relatively affordable price.
So there you have it, our top 10 franchises that thrive in recessions! While recessions can be scary for business owners, hopefully this information has eased your mind that some businesses are perfectly durable even during tough economic times.
Thinking about starting or investing in a new business? Find out everything you need to know about Pinspiration Franchise here!
