Aug 17, 2021 - Blog, Franchise Articles by |

In February 2020, we published an article titled, Is There Really Such a Thing as a Recession-Proof Franchise? While we would like to say that this was prescient, the reality is that it was simply a coincidence. However, what is not a coincidence is that the Franchise Business Review recently published a list of its Top 100 Recession-Proof Franchises. As the publication explains, the list “look[s] at today’s top franchise brands with the highest owner satisfaction and the greatest opportunity to perform in these historic times.”

Franchise reviews like the Top 100 Recession-Proof Franchises are a dime a dozen. They all come with caveats, and some are even pay-for-play. With regard to its list of recession-proof franchises, Franchise Business Review writes:

“From our perspective, franchisee satisfaction is one of the most important factors to consider before investing in any franchise opportunity. Not only do the following companies have outstanding satisfaction among their owners, but we feel they hold a strong advantage to out perform [sic] their competitors in the years ahead.”

The site does not appear to include any additional information regarding the criteria for inclusion in the Top 100 Recession-Proof franchises. Thus, aside from franchisee satisfaction, it isn’t clear on what basis these franchises are being classified as “recession-proof” (and it also isn’t entirely clear how owner satisfaction translates to economic imperviousness). With this in mind, like most franchise reviews, it appears that the Top 100 Recession-Proof Franchises should be taken with a grain of salt.

Categories of “Recession-Proof” Franchises

The Franchise Business Review’s list includes franchises in 18 categories. Some of these categories are quite broad (i.e. Food), and some actually haven’t fared all that well during the pandemic (i.e. casual dining restaurants—which took a major hit last year and are still largely struggling to recover). The categories included on the list are:

  • Advertising & Sales
  • Automotive
  • Business Services
  • Child Services
  • Cleaning & Maintenance
  • Education
  • Finance & Tax
  • Food
  • Health & Beauty
  • Home Services
  • Pet Services
  • Real Estate
  • Retail
  • Senior Care
  • Services
  • Sports & Recreation
  • Technology
  • Travel & Hospitality

We covered some of these categories when we discussed the topic of recession-proof franchises (if there really is such a thing) last February. Specifically, we focused on Automotive, Hair Care (a subcategory of Health & Beauty), Resale (a subcategory of Retail), Senior Care and Restoration Services (a subcategory of Services). As we said at the time, these types of franchises all provide goods and services that most people would classify as “necessary,” and thus they may be more likely to survive even if people have less disposable income to spend.

Should You Buy a “Recession-Proof” Franchise?

When buying a franchise, there are numerous factors to consider. While stability is an important factor, it is ultimately just one of many—and, ultimately, there is no guarantee that any franchise will survive. If you are thinking about buying a franchise in any of the categories listed above, you should be sure to conduct thorough due diligence (not solely rely on third-party franchise reviews), and you should have the Franchise Disclosure Document (FDD) and franchise agreement reviewed by an experienced franchise attorney.

Are you thinking about buying a franchise? If so, we can help you make an informed decision. Call 202-293-3947 or contact us online for a free and confidential consultation.

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Free Consultation