What industries are the hottest for new franchises during the recession?

min read
Opinions expressed by Entrepreneur contributors are their own.
You are smart to focus on which franchises are doing the best in these tough times. Sometimes they aren't companies that are growing rapidly but they are great opportunities in recessions, so that makes them the "hottest" in my book.

There are three secrets to finding a business that does well in tough times:

1. Find one that people have to use regardless of the economy. The classic example is hair-cutting. Hair grows and it has to get cut--in good times or bad. When your business involves a product or service that people use regardless of the economy then you'll do well in a recession.

2. Find one where the service is paid for by a third party with deep pockets, like an insurance company or the government. The classic example is the restoration business. If a pipe bursts and floods your basement, your insurance company is going to help you locate a restoration company to fix the damage and they will pay the bill for the repairs.

3. Find a franchise that is supported by a huge demographic or market trend. The classic example in today's market is non-medical in-home senior care. There are a bunch of franchise companies in this space and they all seem to be doing well because the baby boomers are expanding their customer base as fast as new units can open.

Good luck on your search.
More from Entrepreneur
Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Discover the franchise that’s right for you by answering some quick questions about
  • Which industry you’re interested in
  • Why you want to buy a franchise
  • What your financial needs are
  • Where you’re located
  • And more
Make sure you’re covered for physical injuries or property damage that occur at work by
  • Providing us with basic information about your business
  • Verifying details about your business with one of our specialists
  • Speaking with an agent who is specifically suited to insure your business

Latest on Entrepreneur