One of the most common questions entrepreneurial candidates ask me is which type of franchise opportunities are thriving? It’s a natural inquiry from someone looking to play it safe and find a business that operates in a high-demand marketplace. While the answer will always be subjective in nature, as market demand obviously fluctuates, there are some tried and true strategies for investigating certain franchise opportunities that consistently perform, regardless of how the economy is fairing. In the franchising industry, we label these business models as “recession resistant.”

Franchise Opportunities That Address Wants Vs. Needs

What are some obvious examples of “recession resistant” franchise opportunities? A good benchmark for determining this question is to think of any businesses that cater to a consumer’s needs, not their wants. For instance, you might want to remodel your kitchen – which might make a home improvement franchise sound attractive – but you need to get a haircut every few weeks or so to maintain good grooming habits. Just the same, you might want to book a luxury cruise vacation – and there are franchises that specialize in booking travel - but you need to get your car fixed when it’s time for routine maintenance or in need of repair. And there are countless automotive services franchise opportunities.

What’s Hot. And What’s Not…

Based on my current point of view, I continue to predict a lot of success for the safe, resilient, recession-resistant business categories in 2025. These include a diverse number of small business and franchise opportunities that operate in the healthcare, education, and home improvement sectors. From my perspective, there are also a few areas that have been performing well going back to pre-Covid days. I see a lot of entrepreneurial interest in mind, body, health and wellness business models, as well as anything related to youth enrichment. This may be a nod to the demographics that are driving most of the interest in franchising and small business ownership at the moment – Millennials. I think they see the value of enrolling children in certain activities, be they sports, educational, or entertainment related. To own and operate a successful youth enrichment business, it takes good infrastructure, and that’s where franchising’s proven business models provide a substantial advantage.

Business Outlook By Type

With over 4,000 different franchise opportunities in the marketplace today, there’s a concept for just about anything you can think of. They also vary by type. Many are traditional brick and mortar retail franchises, as one might expect. But there are also business models you can operate from home and/or on a mobile basis – and they’re becoming more popular than ever thanks to low overhead and inventory. Commercial real estate vacancies remain widespread, but I don’t believe that brick-and-mortar franchise opportunities will ever be out of fashion – especially among the older demographic. Too many people still envision business ownership as hanging a shingle out on Main Street USA. However, with the younger generation, the opposite is kind of true. Right now, they’re struggling just to buy a home, much less a storefront. They tend to stick to franchise opportunities that allow them to run a business ventures out of the home – or choose those that are mobile-based and offer more freedom and flexibility in scheduling.

Some Final Thoughts

When it comes to personal business ownership, most people still have an antiquated viewpoint - especially if they didn’t grow up around other entrepreneurs. They’ve been conditioned from a young age to work for someone else – get a good-paying job, climb the corporate ladder, etc. That being said, there still appears to be plenty of pent up demand to pursue entrepreneurial business ownership, but there’s a significant gap in follow up. The majority of people who fail to pull the trigger and act on their desires are usually their own worst enemy. Experience has taught me that if you want an entrepreneurial future as a franchise owner, you have to be committed and decisive to make it happen.

Editor’s Note: mark your calendars on Friday, Nov. 8 and come join us for FranNet of the Heartland’s Annual Celebration and Fundraiser. We’ll be meeting at the Hot Shops Art Center from 4:00 – 7:00 p.m. for networking, refreshments, door prizes and plenty of entrepreneurial inspiration. This year, our charitable beneficiary is The 50 Mile March Foundation. For free pre-registration, follow this link: https://www.eventbrite.com/e/the-frannet-annual-celebration-fundraiser-t....

Blake Martin is the owner of FranNet of The Heartland, an Omaha-based franchise brokerage, sales, and consulting firm that provides no-cost coaching and consultation for entrepreneurs and small business owners. As a Certified Franchise Executive (CFE) and a graduate of the University of Michigan’s Psychology Program, he provides practical advice that helps entrepreneurial clients become small business owners, including franchise opportunities. He can be reached at bmartin@frannet.com.