'Recession-proof' franchise opportunities

Entrepreneurs looking for their next big venture may not have to wait until the recession is over to turn a profit, if they pursue franchise opportunities in certain "recession-proof" industries, says franchise business consultant firm FranNet.

"No industry is completely recession proof, but we are finding that there are several franchise sectors that are prospering due, in part, to the current state of the economy," said Jania Bailey, president and COO of FranNet. "When financial change occurs, so do consumers' needs and purchasing habits. As a result, a distinct group of businesses are now in higher demand."

Topping the list of these in-demand industries is senior care services, considering the enormous revenue potential of the aging baby boomer generation.

Also promising is the technology solutions services industry - according to Bureau of Labor Statistics data cited by FranNet, the IT sector is expected to increase by 800,000 jobs in the decade between 2006 and 2016.

The tutoring services industry is also listed as potentially attractive to franchisers, as education investments are less vulnerable to market fluctuations.

Business expert Maria Anton recently published a column on business.gov outlining important steps for a prospective franchise owner, including checking out success stories, carefully comparing franchising opportunities, scrutinizing the disclosure document, and hiring an attorney and possibly an accountant.

Prospective franchise owners in need of business lines of credit are urged to consider small business loans, from banks or nontraditional lenders, experts advise.