Franchises are a great way to expand your business. They allow you to grow and expand your brand while providing you with the opportunity to earn a steady income. Franchises can also be quite lucrative, for instance, the chai sutta bar turnover exceeds 7 figures annually.
The benefits of franchising are endless, but there are some franchises that are more recession-resistant than others. Here are some profitable and recession-resistant franchise sectors:
- Automotive franchises
Automobile dealerships are some of the most recession-resistant franchises because they offer a specific service and product — cars. However, these businesses aren’t immune from declining consumer spending on cars and other products that dealerships sell, such as oil and tires. But, if you own an automotive dealership, you may be able to survive this downturn by selling used vehicles or financing deals for customers who can’t afford new ones at current rates.
- Healthcare franchises
Healthcare is one of the most recession-resistant industries because it has a high barrier to entry and delivers high-profit margins due to the need for medical services in many cases. According to Forbes magazine, healthcare franchises have an average annual return on investment (ROI) of 22 per cent, which is higher than all other categories except technology and food service franchises which are also considered recession resistant. The average return on investment (ROI) for these three categories was just under 30 per cent.
- Hair care franchises
Hair salons and barbershops have been around since the beginning of time, but they haven’t always been so profitable. Hair styling has become an industry that is becoming more popular with each passing year, so it’s no wonder that there are so many salons opening up across the country. In fact, there are already 30 million people who visit salons each year, which means there’s room for growth in this industry as well.
- Food franchises
The success of dominos franchise in India is a testament of the success of food franchises. Food franchises are the fastest-growing sector in franchising, with a growth rate of 4.6 per cent per year on average. The industry is worth more than $635 billion and is expected to grow at a compound annual growth rate of 2 per cent through 2023.
The best food franchises take advantage of their local knowledge and make it possible for customers to get what they want when they want it. This includes being able to customize orders when necessary or substituting ingredients if needed. Some food franchises also offer delivery services or online ordering options, which allow customers to order ahead of time and have their meals delivered to their doorsteps or homes.
Many people enjoy eating out at restaurants because they can easily find something different every time they go there, unlike some other types of establishments that offer very limited options or those with strict rules on what they can serve their customers (such as alcohol). Franchises have been around for decades and have proven themselves to be recession-proof. In fact, they are so reliable that they have even survived major economic downturns like the Great Depression and the 2008 financial crisis. Hence they can be considered a good investment even for future cases of recession.
