Which Franchises Do Best During Recessions?

NicheGeek:

Starting a business in a recession carries plenty of risks. But one way to reduce the chance of failure may be with a franchise - particularly one that has done well in previous downturns.

There are hundreds of possibilities to choose from. If it’s a business concept, someone probably has sought to make it into a franchise. For help in picking one during a financial slump, here’s some advice gleaned from franchisees, franchisers and other industry sources.

Focus on tried-and-true name brands. They’re likely to be more expensive to buy into, but the premium will be justified because of their public recognition and proven track record. And when trouble occurs - as even in the best of systems it will - they’ll be better equipped with safety nets woven from long experience. Larger, established franchised systems also often have independent franchisee organizations, which can offer invaluable assistance and advice.

‘Avoid anything that looks like a fad,’ says Michael Seid, co-author of ‘Franchising for Dummies.’ Hot new concepts can burn the unsuspecting investor, partly because there’s scant evidence as to how well they do on economic roller-coasters.

Stick to core goods and services… read on.