What Makes a Franchise Recession-Proof?
If you are interested in buying a franchise, you will want it to stand the test of time. While many businesses face significant challenges during recessions and other unforeseen market upsets, some industries weather the storm better than others.
INDUSTRY STALWARTS
Before looking at franchises, specifically, it’s important to consider the industries that achieve success through good times and bad. In fact, some businesses thrive because of economic downturns. These industries are known as “defensive” or “counter-cyclical,” and include sectors such as pharmaceuticals, insurance providers, and discount retailers. Many of these industries only represent a small portion of consumer spending, however, which might limit their long-term value.
Other sectors are considered “non-cyclical,” which means that they retain their value despite recessions or pandemics. Examples of non-cyclical industries include food and beverage, child and pet care, automotive, and cleaning services.
For prospective business owners, these industries provide a broader opportunity for longevity because they provide goods and services that are always prioritized for the consumer.
WHAT TO LOOK FOR
Some businesses are more primed to face economic upheaval than others. While doing your research into what franchise is right for you, consider companies that meet at least one of the following criteria:
Provides critical repair services
Sells consumer essentials
Serves customers insulated from downturns
Provides an essential service
Sells proprietary or specialized products
THE BIGGER PICTURE
While you want to be a part of an industry that can withstand economic hardships, don’t forget about the other factors at play. Consider the industries that do well during recessions because they maintain or improve people’s quality of life.
Franchise industries have certainly fared well during times of economic prosperity, but there have also been upticks in times of financial downturn. Amidst recessions (or the COVID-19 pandemic), many people are facing job insecurity and uncertain futures, which drives them to invest in themselves through franchising.
WELCOME TO SCENTHOUND
When you choose to franchise with Scenthound, the benefits are twofold: you are investing in a recession-proof business that has adapted and thrived since 2005, and you are providing essential services to your customers and their beloved pets.
Scenthound breaks the mold as a unique concept within the larger pet care sector. With a focus on dogs’ overall health and wellness, our “Scenters” address the needs that 90 percent of other pet care businesses don’t. Our membership-based business model provides consistency for customers and franchisees alike, allowing our Scenters to maintain the highest level of customer and pet service during all seasons.
Scenthound positions themselves the leader of a $99 billion recession-proof industry by offering franchisees ongoing support with training, advertising, innovative services, and day-to-day operations.
If you would like to learn more about franchising opportunities with Scenthound, click here to learn more.
Note – No industry is truly “recession-proof,” but there are certain industries that are more resilient during economic downturns than others.