Franchising

Recently I have seen the phrase 'Recession Proof Franchise' all over the Internet. But what exactly is this? Furthermore is there such a thing? It would appear to be the complete answer in the existing hard times if there was indeed a franchise opportunity that was genuinely 'recession proof'.

I think a more correct term could be 'recession resilient franchise' since I have yet to come across a business that is guaranteed successful (although please drop me a line if you find one as I'll be at the front of the line) and in truth the task comes down on the owner of the franchise business as to whether it is a success or if it fails, whether franchised or otherwise.

Types of franchise opportunity which could be classed with the term, 'Recession resilient franchises' are by and large 'must have' services and product provisions. These types of franchise business often weather the storm well because they are perceived as non-optional or necessity type businesses as oppose to extra products or services that may be good to have but, if money is tough, are not vital for living.

'Must have' class franchise businesses generally fall into two categories: business-to-consumer and business-to-business:-

Business to Consumer
These type of businesses deal with, for example, needed domestic services such as plumbing maintenance, vital household maintenance, cleaning services and the like.

Business to Business
Business to business deals with, for instance, franchise business cost reduction and office cleaning services. These present good options because their characteristic marketplaces can often be what some are talking about as 'recession proof'... or 'recession resilient' as i rather call it.

This doesn't automatically rule out franchise businesses which can potentially fall outside of this range. There might of course be other types of franchise business that don't fit into the classic 'must have' services but look to be thriving nicely in the downturn because their offering is particularly 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 now be a good business opening.

Ultimately, when choosing a franchise, one of the best gauges to how recession 'proof' or 'resilient' a franchise is, is their established franchisees. When thinking about a franchise opportunity, regardless of whether its its professed to be 'recession proof' or not, make sure you do your research. Get a record of a few different franchisees from the franchisor of interest and put aside time to speak to them about how their franchise is doing in the light of the downturn. This will offer you beneficial insight into how well the franchise is doing through what is one of the toughest times in history for businesses globally.