Considering A Recession Proof Franchise System
Lately I have seen the saying ‘Recession Proof Franchise’ doing the rounds. So I wanted to look into what really is this? And also is there such a thing? It would sound to be the ideal answer in the present economic climate if there was actually a franchise that was genuinely ‘recession proof’.
I believe a more correct term could be ‘recession resilient franchise’ in view of the fact that I have thus far to come across a company that is guaranteed successful (although please drop me a line if you find one as I’ll be first in line ) and in reality the duty comes down on the owner of the franchise opportunity as to if it is a success or fails, regardless of whether its franchised or otherwise.
Types of franchise business which might be classed with the term, ‘Recession resilient franchises’ are by and large ‘must have’ services and product supplies. These class of franchise often withstand the storm nicely since they are perceived as required or necessary type systems as oppose to indulgence products or services which could be good to have but, while money is tight, are not vital for living.
‘Must have’ type franchise businesses more often than not fall into two categories: business-to-consumer and business-to-business:-
Business to Consumer
These class of businesses cover, for example, needed domestic services such as electrical maintenance, essential domestic maintenance, cleaning services and the like.
Business to Business
Business to business takes in, for instance, business expense reduction and commercial cleaning services. These represent good as their characteristic marketplaces can potentially be what some are giving the phrase ‘recession proof’… or ‘recession resilient’ as i rather to term it.
This doesn’t inevitably rule out franchise opportunities which might fall outside of this category. There might of course be additional types of business that don’t fit into the classic ‘must have’ services but appear to be doing nicely in the downturn since their offering is very desirable at this moment in time. This is worth considering when carrying out your research so as not to lose out on what may well presently be a profitable business opportunity.
In the end, when choosing from a range of UK franchise opportunities, one of the most suitable gauges to how recession ‘proof’ or ‘resilient’ a franchise business is, is their existing franchisees. When researching a franchise opportunity, regardless of whether its its claimed to be ‘recession proof’ or otherwise, make sure you do your proper research. Get a list of a number of various franchisees from the franchisor you are considering and take time to chat to them about how their franchise opportunity is bearing up in the light of the downturn. This will offer you significant insight into how well the franchise is doing during what is one of the hardest times on record for businesses all round the word.
