Why Entrepreneurs Turn to Franchise Opportunities During Economic Uncertainty
Uncertain times often bring exciting change — and during the pandemic, entrepreneurship surged. From 2021 to 2023, the Small Business Administration (SBA) reported a record 16 million new business applications. This wave included a diverse mix of aspiring entrepreneurs — an increasing number of women, minorities and individuals pursuing franchise opportunities alongside traditional startups.
For many people, seeking franchise opportunities during economic uncertainty is the most practical path to business ownership. According to the International Franchise Association, the number of franchise establishments in the U.S. has grown steadily, and is expected to surpass 851,000 units in 2025, which is a 10% increase from 2019.
This steady growth suggests that franchising not only offers a safety net in turbulent times, but also reflects growing confidence in the model’s resilience, scalability and ability to adapt to shifting consumer and economic trends.
The home services sector unquestionably reaped the most reward during this time since people were staying home and wanted to liven up their indoor and outdoor spaces. And the demand for home services continues. A recently released report by a Harvard University program projected that homeowners will increasingly spend more on upgrades and repairs through 2026.
Similarly, during the Great Recession, franchises considered “recession-proof” saw a significant uptick in demand. Consumer behavior shifted; instead of spending on travel, people invested in self-care, boosting the health and wellness sector.
Today, there is market noise once again. Anyone who has an investment portfolio is witnessing the roller coaster effect from threats of sweeping tariffs that are creating waves across the world.
If you’ve always dreamed of owning a business but haven’t developed your own concept, franchising is worth considering.
There’s Never a Perfect Time
There’s always a reason to wait — student loan debt, getting married, buying a home, raising kids, sending kids to college. These rationalizations are common, but many business owners who finally take the leap in their 50s often express the same regret: “I wish I’d started a decade earlier.”
Some prospective franchise owners removed money from the markets during the recent election cycle and invested it in themselves. Others chose to wait — only to see their portfolios shrink, at least on paper.
Made in the USA
Many of the franchise brands I represent manufacture their products in the U.S., minimizing their reliance on imports. These include businesses in health and wellness, pet care and experiential services. There are also work-from-home franchises, mobile concepts, B2B and B2C services, and, of course, popular food brands.
Even if a franchise relies partially on imported goods, purchasing power often allows franchisors to offset cost increases and negotiate better pricing. Forward-thinking brands also explore new domestic suppliers to protect franchisees from rising costs. It’s smart to avoid concepts with thin margins or those heavily affected by spikes in materials like steel, aluminum, or computer components.
Welcome Back, Old Friend
The word “pivot” became ubiquitous in 2020 as business owners adapted to the unknown. But agility and innovation aren’t just for crisis times — they’re cornerstones of successful business ownership. Franchises that embrace change often emerge stronger from tough times.
A key benefit of franchising is collaboration. Franchisees support one another and contribute ideas to the larger system. That collective mindset can drive innovation and prevent isolation, which is often a challenge for independent business owners.
Tight Job Market
In 2024, over three-quarters of a million people lost their jobs — the highest rate in 15 years, according to Forbes. The first quarter of 2025 hasn’t been much better, with sweeping layoffs across both the private and public sectors. Hiring rates are also slowing, according to Marketwatch.
People leaving or being forced out of the corporate world often turn to franchising as a second act. Especially now, franchise opportunities during economic uncertainty have become an attractive career alternative. The appeal lies in having a proven system, brand recognition, and comprehensive training—making the model accessible to a wide range of professionals, from teachers and engineers to military veterans.
Franchising is a shift in mindset. There will always be uncertainty, global supply chains may remain unpredictable for the foreseeable future and labor can be difficult to maintain. However, the ability to control your own future has never been more appealing.
“So, what do we do? Anything. Something. So long as we just don’t sit there. If we screw it up, start over. Try something else. If we wait until we’ve satisfied all the uncertainties, it may be too late.” – Lee Iacocca
