Recessions can be stressful, and it feels like we’ve spent the past several years in economic uncertainty. The news headlines sound grim, companies announce layoffs, there’s increased talk about AI taking over parts of our jobs/reducing the size of human headcount employers will need, and many people wonder if their jobs (and their savings) are safe. If you’re considering business ownership through franchising, you might be asking yourself: Is this the right time to start a business?

The surprising truth: a recession can be one of the best times to invest in a franchise. Here’s a few reasons why.

W2 Jobs Aren’t as Safe as They Seem

Many people think that staying in a corporate job is the “safe” route. But during downturns, layoffs and restructuring become common. Even strong performers can find themselves part of a reduction in force (RIF) with little warning.  Couple that with companies starting to acknowledge AI will reduce the number of employees they’ll need to remain competitive and betting on yourself by starting a business through franchising starts to look like a better way to take control of your future.

If you’ve experienced this firsthand or know someone who has, you know how quickly the stability of a paycheck can disappear. A W2 job is only as secure as your employer’s financial health.

Owning a franchise flips that equation. Instead of relying on someone else’s decisions, you create your own security by building an asset you control.

Why Franchising Is a Safer Bet Than Going It Alone

Starting a business from scratch in a recession can feel like climbing a mountain without a map. Franchising gives you the map, the guide and a team of experts who can help you avoid expensive or catastrophic mistakes.

With a franchise, you benefit from:

• A proven system – Franchisors have tested and refined their business model, so you don’t have to reinvent the wheel.
• Brand recognition – Customers trust established names, especially in uncertain times.
• Training and support – You’re not navigating challenges alone; franchisors provide ongoing guidance.
• Economies of scale – Many franchises offer group purchasing power, lowering costs compared to independent businesses.

This combination reduces risk significantly compared to going it alone.

Which Industries Hold Up Best in a Recession?

Not all businesses are equally impacted by economic downturns. Some industries are “needs-based”, meaning people still spend money on them, even when cutting back elsewhere. Historically, these industries show more resilience:

• Home Services – Repairs, maintenance, and cleaning aren’t optional when things break or wear down.
• Health & Wellness – People still need care for themselves, their families, and even their pets.
• Education & Child Enrichment – Parents continue to invest in their children’s learning and development.
• Senior Care – An aging population means steady demand, regardless of the economy.

Investing in these sectors can give you confidence that your business will remain relevant no matter the economic cycle.

Why a Recession Can Be a Good Time to Start

While it may feel counterintuitive, many successful businesses have launched during recessions. Here’s why:

• Talent availability – More people in the workforce may be seeking jobs, making it easier to hire quality staff.
• Favorable real estate – Commercial spaces may be more available and affordable.
• Less competition – Some weaker businesses may close, creating opportunity for well-prepared owners.  Additionally, baby boomer business owners who run owner-operator businesses are increasingly retiring and closing their business altogether.
• Resilient consumer habits – People still spend, just differently.  Franchises with proven models are better equipped to adapt.

Taking Control of Your Future

If you’ve been impacted by a layoff or are worried about the next downturn, it may be time to shift your perspective. Relying on a W2 job for “security” is less safe than it once seemed. Business ownership through franchising offers a way to take control, build stability, and create an asset for yourself and your family.

Recessions remind us that nothing is guaranteed—but with the right franchise, you can position yourself to weather the storm and even thrive in it.

Considering a franchise but not sure where to start? I help people narrow down 800+ franchise opportunities to the 3–5 that best fit their goals, skills, and situation. Let’s explore your options.  https://calendly.com/molly-yourtruenorthadvisors/30min