In these uncertain times, history is our best guide.
The great pandemic of 2020 has had a massive impact on the U.S. labor force, and no one has been exempt. 30 million unemployment claims have been filed in the last six weeks, C-level executives have taken salary cuts to sustain bottom lines, etc. For many Americans, the pandemic has prompted them to take inventory of their career paths and left them questioning if they’re actually doing what they love.
It’s long been known that franchising creates a viable path to entrepreneurship, having support and proven processes in place that help to mitigate many of the risk factors associated with start-ups. Franchising epitomizes being in business for yourself, but not by yourself. Even a few of our Fishies here have graduated on to the next phase of their lives by investing in franchises and are thriving.
Leading market research firm, Franchise Business Review (FBR) recently published a report of the Top 50 Recession-Proof Franchises, taking a look at today’s top franchise brands with the highest owner satisfaction and the greatest opportunity to perform in these historic times. Using its Top 200 Franchises of 2020 list as a starting point, FBR compiled the top 50 brands, and we were proud to see several of our clients on the list, including Pinch A Penny Pool Patio Spa, FASTSIGNS, Chicken Salad Chick, Tropical Smoothie Cafe, Mr. Appliance and Aire Serv.
In addition to the top 50 franchise brands, FBR took a look at recession-resistant sectors, using past economic fluctuations as a guide (take the ’08-’09 recession, for example). Below are the sectors and more of our clients that fit into them:
Automotive Repair: People tend to hang on to their current vehicles longer during a recession.
Business Services & Staffing: Outsourcing business services like payroll and recruiting, as well as contract workers can help companies slowly gear back up in a cost-effective way.
- BoeFly
Child Services & Education: For parents going back into the office.
- Ivy Kids
Cleaning: COVID-19 has amplified the importance of thorough cleaning in both homes and office spaces.
- The Cleaning Authority
Financial Services: Many families revisit their investment portfolios during a pandemic and seek trusted advice to help rebuild and protect their wealth.
Fitness: Quarantine 15 anyone?
- CITYROW, TruFusion
Food: Trends show that food franchises that offer lower-priced, value options and curbside pickup and delivery services will recover more quickly.
- Captain D’s, Dunkin’, Freddy’s Frozen Custard & Steakburgers, Jamba
Home Repair & Maintenance: With people spending more time at home, this sector is expected to grow.
- Benjamin Franklin Plumbing, Conserva Irrigation, Glass Doctor, Handyman Connection, Mister Sparky, Mr. Rooter, One Hour Heating & Air Conditioning, Rainbow International
Personal Services: Hair salons, barbershops and spas were among the businesses mandated to close, but there is an undeniable pent-up demand for these services.
- Massage Heights, skoah, Sola Salon Studios
Real Estate: Particularly companies that focus on the lower- and mid-tier markets.
- Regus
Senior Services & Home Care: Long-term care facilities like nursing homes remain hotspots for COVID-19 cases and deaths. Many families will continue to look at in-home care service providers to support their senior loved ones.
- Always Best Care
Specialty Retail & Resale Franchises: Niche franchises typically have loyal customer bases. With people continuing to stay close to home, many have found solace in hobbies and home-based activities.
- Fleet Feet
Specialty Services: Includes any franchises that offer specialty services that consumers can’t find anywhere else (e.g. moving services).
- Madison Reed, Mosquito Squad
To read more about FBR’s report, click here.
