The best franchises to invest in for 2023 are those that thrive in times of economic uncertainty. Here are five recession-resistant franchise ideas worth looking into.
1. Home Improvement
Home remodeling and repairs have typically been deemed recession-proof by experts. That’s due to people looking to stay in their homes longer and repair their current homes during economic downturns.
IBISWorld statistics show that the home remodeling industry has grown every year for the last decade, making it one of the best franchises to invest in for 2023. More specifically, Global Market Insights says kitchen remodels franchises are the best investment because kitchens make up the largest share of market revenues in the industry, even over bathrooms.
Kitchen remodeling jobs can be an easier sell because of the potential for a more significant return on the investment (ROI). Homeowners can expect a see a 52% ROI in a new kitchen if they sell their home, according to Better Homes and Gardens. Even just a minor kitchen upgrade can give a 77.6% ROI, according to Moving.com.
2. Education Centers and Tutoring
Kids have struggled to find consistency in their education in the last three years; unfortunately, it’s showing. Test scores took a hit in the U.S. during the pandemic. My Millennial Guide reports that the U.S. is falling behind the rest of the world in academics, making education centers and tutoring crucial in turning that around.
The push to improve test scores will have parents turning to education and tutoring centers, making them an excellent franchise investment. However, unlike franchises where no field experience is required, most tutoring franchises require an educational background. They also can be costly because of the price of in-person centers. Nevertheless, it is a trend experts predict will grow over the next year as more teachers look for ways to leave the classroom.
3. Salons and Barbershops
CNN deemed salons and barbershops as one of the closest things to a recession-proof business. While CNN made this comment a decade ago, it remains true. People still want to look good, hair is constantly growing, and cutting hair is a specialized service that can’t be automated with technology.
Census data shows that even during the Great Recession from 2007 to 2009, the number of beauty salons in the country still increased. There were 18.6% more barbershops and 14.4% more beauty salons in the U.S. in 2009 than in 2007. That shows you that these shops stayed open through tough times, and there was even a need for more.
4. Automotive Repair
The average price of a new car hit a new high this summer, with Kelley Blue Book reporting the average price marking more than $48,000. Cars are an absolute necessity for Americans, even during a recession. Drivers are more likely to dump a couple of thousand dollars into fixing their current car than buying an expensive new one. On top of that, the older the car, the more likely it’ll need repairs. Like cutting hair, auto work is a specialized service that most people can’t perform themselves. So, people will always need to take their cars to auto shops for repairs and routine maintenance like oil changes.
5. Property Management
My Millennial Guide finds that over 35% of Americans rent over owning a home. On top of that, with housing prices increasing every month this year and mortgage rates increasing, people are shying away from buying a new home. This trend makes property management appealing to those looking to invest in a franchise.
N-Hance: One of the Best Franchises to Invest in for 2023
It’s important to remember that investing in recession-resistant franchises won’t guarantee profits. So instead, find a brand you can get behind and put all your efforts into.
At N-Hance, investing in a territory doesn’t have to break the bank. We offer a lower cost of ownership compared to many other franchises in the industries mentioned above and provide in-house financing for qualified candidates. Also, when people are looking to save a few pennies during more challenging economic times, we can help them do that. As America’s No. 1 wood refinishing brand, our work is completed at a fraction of the cost of our competitors. Start on the path to helping your neighbors create a new look in their kitchen by requesting N-Hance franchise information.