Best Franchises in 2020 – Recession?

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This will be the hardest year we have ever had to predict based on what is happening right now. A lot of speculation, we dont know how long or how severe this is going to be. It could go away quickly, or it could have a long and sustained impact on the economy. My personal belief, and this is based on the fact we have multiple issues on the horizon including collapsed oil prices, inverted yield curve, negative interest rates, global debt bubble, printing money, student loan bubble and soon to be 30% unemployment, I think we will have tough years ahead for those who are not prepared. That said – time to get prepared, there are always ways to make money in a depression, people still need services, and I think certain industries will see increased growth. Lets take a look.
Real Estate. and there are a few options within this sector. When the economy slows many people will have to sell their homes. Sad but true. A real estate brokerage franchise can be started for as low as about $40,000, one of the new brands we have here, very unique model, does not even require a real estate license or experience. You are managing a crew of real estate agents and receive an override for every house they sell. This brand is just entering the US as well so a great time to get on board. Another franchise in the sector is the we buy ugly houses franchise, Homevestors, we have covered them on the channel before, you can fix and flip houses, or better in this market, hold and set up multiple rental units. Obviously when the market tanks there will be some incredible deals on the market to build a real estate rental empire, as you have the double benefit people will have to sell their homes AND and they will need to rent. Investment varies for that franchise depending on your city but ranging from about $50,000 to $250,000 for a big city like New York. We can help you determine you cost give us a call or hit us up on the website. Further in the real estate theme is property management. As people lose their houses, the rental market heats up, more and more landlords will need the help of qualified property managers. A property management franchise has major benefits over starting as an independent, we have covered this on the channel before. Investment for a property management franchise starts at about $50,000 including your working capital.
Next up – Consulting franchises. Certain industries that help companies reduce costs or become more efficient will have increased demand. Many businesses will be trying to cut costs, and there are several specialty franchises that work in sectors like telecom or energy that are likely to see great demand. These franchises train franchisees how to identify and negotiate these savings, and in some cases the franchisees will share in the savings over a period of time. Investment is around $50,000, and we have one franchise that is waiving the royalties for a period of time for all new franchisees.
Senior care. You cant put grandma out to the curb because the economy is not good. We know the boomers, the biggest part of the population started turning 65 in 2011, that trend will continue for many years. They have money and will continue to need help as they age. There are multiple niche markets in senior care from placement type franchises, where you help seniors find a suitable care facility, investment about $70,000, to full care-giving franchises where you manage teams of caregivers who visit seniors in their homes and facilities, that investment starting at about $100,000.
If you are a passive investor, dont want to actually work in the business there are certain recession resistant sectors like hair cutting, water filtration, laundry services in certain cases . You need to be careful to examine the needs of your own market as certain regions can be saturated. Investment for these businesses about $250k per unit, with a reduced price for multi-units. Most of these franchises can be financed with about 20% down OAC, you can also use your 401k, which if the economy keeps dropping might be better invested in your own business rather than in the general markets.
Now keep in mind your own skills, operational preferences, local demographic and dozens of other factors will determine which franchise option is the best for your situation. We have free tools and coaching at Franchise city that can help make a better decision – If you would like to explore any of the franchises mentioned today you can find us at



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