By Stefan Figley
With cumulative inflation in the US increasing by over 20% from 2020 to 2025 and the economic uncertainty that comes with newly elected leaders, it’s important that entrepreneurs invest their time and money into recession-resistant industries.
Establishing businesses in essential service-based industries makes it possible for new franchise owners to grow steadily, regardless of market trends. Contents restoration franchises, for example, stay in steady demand during economic downturns because they offer homeowners a chance to gain peace of mind, recapture precious memories and return to normalcy in the face of disaster.
Why service-based franchises hold up well during recessions
The US economy ebbs and flows, making recessions an inevitable part of the system. In moments of economic downturn, people become more conservative with their spending and avoid splurging on luxury purchases. This response to a weaker market puts pressure on many industries, including retail, restaurants and tourism services.
However, companies that offer essential services to consumers tend to remain steady and can even grow during a weaker economic landscape. Examples of common businesses that thrive during uncertain economic futures include essential home services.
When thinking of establishing a recession-resilient business, potential franchise owners must consider potential fluctuations in the market and invest accordingly. Choosing an essential home service, like a contents restoration franchise, gives entrepreneurs a chance to see a profit when other industries struggle.
How demand for contents restoration keeps franchises steady
Natural disasters like hurricanes, wildfires and earthquakes can happen at any time and are unfortunately becoming more frequent. Last year, the nation experienced 27 confirmed extreme weather events with losses of over $1 billion per event.
And with the tragic outbreak of recent wildfires in Los Angeles County, the costliest weather event in California history at an estimated $275 billion, 2025 is already feeling the effects of extreme weather.
Contents restoration franchises remain steady and often see an increase in demand in the wake of these events. Much of the increased demand doesn’t come from the actual cleaning, storage and restoration services they provide. Instead, contents restoration franchises supply customers with the peace of mind that they can overcome their situation after a weather event and return to normal more quickly.
By building compassionate relationships with customers, contents restoration franchises become an essential service for homeowners in need. The resulting demand keeps franchises stable, even as economic downturns increase pressure on other industries.
The effect of strategic partnerships on a franchise’s resilience
Contents restoration franchises are in a unique position because they appeal both to consumers and other businesses. Focusing on B2B sales and forming strategic partnerships with businesses who deal with disaster relief can add to the stability of contents restoration franchises. Common businesses franchise owners should connect with are.
- Insurance adjusters
- Restoration and mitigation businesses
- Property management companies
- Contractors who specialize in disaster recovery
- Third-party administrators
Creating an expanded network gives franchise owners an added level of security when the economy starts to dip. By relying on other professionals in the industry, B2B efforts open the door to more business for contents restoration franchises in any economic climate.
Expanding to multi-unit ownership can make franchises even more stable
Franchise owners can also thrive in lean times because they have the unique opportunity to expand into multi-unit ownership. Owning multiple franchises creates a more stable platform for franchise owners to build a legacy, even during recessions.
Owners of multiple franchises have the potential to save more money. On average, multi-unit owners take home close to $135,000 in yearly income — about $65,000 more than most small business owners. While no one wants to just weather the storm, multi-unit franchisees do have more chances to save more money during prosperous times and wait out a recession than other business owners.
Who can invest in recession-resilient franchises?
The beauty of contents restoration franchise ownership is that new franchisees don’t need decades of experience in the industry to start a business. Whether they are a new entrepreneur looking for a stable option during low points in the economy or a seasoned veteran expanding their reach, anyone with enough capital and determination can invest in a new contents restoration franchise.
Reliable franchisors give new franchisees the tools they need to launch their location with confidence. From built-in operations systems to thorough training modules, working with a home service franchise platform will set new franchise owners up for success.
Stefan Figley is president of 1-800-Packouts, a leader in the contents and personal property restoration franchise industry since 2016 and part of the Five Star Franchising platform of home service brands. Figley has nearly 30 years of experience in the franchise and marketing industries, with a focus on brand growth. He has held executive and leadership positions with nationally recognized companies such as Terminix, Steamatic, Merry Maids and Jani-King International, as well as prominent international roles in the marketing industry.