Franchise Owners

[Agdog]

My wife is in the discovery phase of possible franchise ownership and is currently working with a well respected consultant. We are in what is likely one of the strongest franchise markets in the US which means significantly increased competition and potential long term over-saturation. We’re looking at recession resistant opportunities given current circumstances but it’s obviously still a risk to pursue something in this environment. Do those of you that have ownership experience have any advice for someone that’s currently kicking the tires?

[TeamAmerica]

Recession resistant. Restoration 1 or similar water, fire, mold remediation. it is not an optional expense and most of the revenues end up coming from the insurance company. not sure if your consultant is truly independent, but they should be able to assess the franchisor to ensure they do NOT over saturate their own market, but that doesn't mean there won't be competing franchises, that is going to exist anywhere in decent markets.

[SharpEnd]

If the consultant is paid by the franchisor (they typically get a commission of 25-50% of the franchise fee), they are working to sell a franchise. Now, they do provide a legit service, and the good ones only represent solid companies, and they do vetting to help determine the fit for you as well as your fit for the franchisor. If you get to the point of wanting to proceed with one franchisor after doing due diligence, it is worth the cost to pay a franchise attorney to give you guidance on the franchise agreement, things to be aware of, points to negotiate, etc.

[Rubberdown]

Are you asking what is a recession proof business or what specifically are you asking? Every field is different so you might want to give a little more specifics. We are in the quick service restaurant business and I could give you insights into that if you have specific questions.

[HogHunter34]

I’ve had an individual approach me via LinkedIn about franchise opportunities. I was skeptical about responding & wasn’t sure of the value this individual offers & fee involved. However, I assume in most of these opportunities you have to be involved or engaged full time or you can hire that out as the owner if already working in a full time career position?

[TKRanch]

Only business I can think of that is immune to economic swings is the Liquor business, people drink no matter what! Good luck.

[Rubberdown]

Cigarettes does pretty well too. Have a buddy with like 4 stores and he’s killing it.