The following 5 franchises, in alphabetical order, are my picks for the Top 5 Recession-Resistant Franchises:
1. Liberty Tax Service
As the saying goes, there are two certainties in life: death and taxes. Every year, by April 15th, most Americans have to file a tax return. Liberty Tax franchisees work on the business, not in the business, and do not need a background in accounting or tax law. Liberty Tax is on the list because:
- They were #21 on the 2011 Franchise 500 Rankings, the highest rated tax preparation franchise
- During the challenging economic times of the last 3 years, they have added over 1,000 retail locations
- For 8 years in a row, Liberty Tax Service has grown by more returns than H&R Block and Jackson Hewitt...COMBINED!
Automotive aftermarket maintenance and repair is a $275 Billion a year industry and the "do it for me section" of the industry is $150 Billion. Meineke franchisees do not work on cars and do not need auto industry experience. They concentrate on running the business. The Meineke real estate team can help you find and convert and independent garage so you can started for a lower cost. Meineke is on the list because:
- Every year the number of cars on the road grows, and the average age of those cars is getting older
- Meineke is recognized by 95% of the US adult population, driven by National TV commercials, the Meineke Car Care Bowl, and millions of direct mail pieces
- Average sales for 6 bay centers in the system is $556,000
Sharkey's Cuts for Kids provides an unique salon that caters to children of all ages. They provide prompt service for on-the-go parents, a fun environment for children, and reasonably priced services. There are a variety of services for customers to choose from including cuts, color, up-dos, mini manicures, make-up application, and private parties. Hair care is a $55 Billion dollar a year with built in demand and a recurring customer base. Sharkey's is on this list because:
- They are the fastest growing chain of children's salon in the country. In their first 2 years of franchising they opened 20 franchised locations and had global commitments for 235+ salons
- Children have to get their hair cut multiple times a year and even in a down economy people will spend money on their children
- Sharkey's franchisees enjoy 3 amazing revenue streams: hair care for boys and girls, birthday parties in their famous Glamour room, and specialty merchandise/party favors
Stratus Building Solutions Master and Unit franchisees are part of a $140 Billion commercial cleaning industry. Stratus franchisees provide their clients with a "one stop shop" for all maintenance services that include "touchless sanitization", specialty floor care, pressure washing and exterior cleaning, "green" recycling, lawn care and landscaping, pest control, energy conservation, and security/safety. Stratus is on this list because:
- All commercial spaces must be maintained (built-in demand), and they must be maintained regularly (recurring revenue)
- They have doubled system-wide sales each year for the last 3 consecutive years ($30M, $60M, $120M)
- They were recognized as the Fastest Growing Franchise for 2011 by Entrepreneur Magazine
The Tutoring Club is a family-owned and operated franchise that guarantees one full grade level improvement with 32 hours of tutoring time. Using proprietary software called TutorAid, tutors create custom lesson plans and track students' progress. Franchisees work on the business, not in the business, and don't need a background in education. Tutoring Club is on this list because:
- People will always spend money on their children, and education becomes even more important in a down economy
- Tutoring Club locations are open Monday - Thursday from 12PM to 7PM so you don't have to take away time from your own children
- Since the late 90s, the supplemental educational services industry has grown at a compound annual rate of nearly 12% and the for-profit tutoring industry has grown by double digits nationally
