Starting a business always involves some risk. But doing it during economic uncertainty feels especially discouraging. Still, not all industries suffer equally during a downturn. Some, like the home services sector, can prove surprisingly resilient, even during recessions.
Let’s break down why home service franchises deserve a serious look for entrepreneurs, especially if you're looking for a recession-resilient business with recurring revenue potential.
Why Franchise Ownership?
Franchise ownership offers a unique opportunity for entrepreneurs to own their own business while leveraging a proven franchise model and an established brand. As a franchise owner, you can enjoy the benefits of business ownership without many of the high risks associated with starting a new business from scratch. Home services franchises, in particular, provide essential services to homeowners and commercial customers, which can lead to a steady demand and substantial returns on your investment.
The home services industry is a growing market, driven by the increasing need for reliable and trustworthy service providers. Whether it’s home repairs, maintenance, or improvements, homeowners are always in need of quality services. By investing in a home services franchise, you can tap into this growing market and build a successful business that meets the needs of your local community. This unique opportunity allows you to be your own boss while benefiting from the support and resources of a larger franchise family.
Why is the Home Service Industry So Attractive?
The home service industry fulfills essential, ongoing needs. From plumbing to electrical work, these services are always in demand. As homeowners continue to invest in maintaining and improving their properties, service-based businesses enjoy recurring revenue and strong customer loyalty. With trends pointing toward increased outsourcing of home maintenance tasks, entrepreneurs in this space are well-positioned for steady growth and long-term success.
By investing in a home services franchise, you can tap into this growing market and build a successful business that meets the needs of your local community. This unique opportunity allows you to be your own boss while benefiting from the support and resources of a larger franchise family. Additionally, exploring various franchising opportunities in the home service industry can help you find the right fit for your personal goals and financial capabilities.
Home Services: Businesses Built for a Recession
It's normal for consumers to cut back on luxuries, especially when the economy dips, but broken home maintenance systems don't wait for better economic times. For example, when the heater dies in the winter or the fridge stops running, homeowners will oblige and fix these issues.
Home services are critical for daily life and can rarely be delayed, making home service franchises among the businesses that remain resilient in a recession.
In 2024 alone, U.S. homeowners spent $12,050 on average on home projects—with Boomers leading in total spending, while Millennials focused more on upkeep than any other generation. This growing demand highlights the essential nature of home services in maintaining property value and functionality.
Demand Is Rising—And It's Not Slowing Down
The way people live and work has likely changed permanently in these post-pandemic years, leading to an increased demand for home services as a result. This rising demand presents a significant franchise opportunity for aspiring entrepreneurs.
With more people living, working, and learning from home, homeowners have helped push the demand for home services to new heights. From home renovation projects to landscaping, cleaning, and repair maintenance, the demand for home services remains high with 93% plan home projects in 2025.
With more time spent at home, homeowners are becoming increasingly aware of issues they may have overlooked in the past.
Recurring Service Revenue = Predictable Income
Unpredictable revenue is one of the toughest challenges new business owners face. But many home service franchises operate on a recurring revenue model.
Regularly scheduled maintenance plans, service contracts, and repeat customers can create a steady income stream. For entrepreneurs, this means more predictable cash flow and a stronger foundation to grow from—especially in volatile economic times, thanks to ongoing support that helps handle challenges and stay informed about industry innovations.
Bonus: As previously mentioned, homeowners are increasingly focused on preventive maintenance, which helps drive recurring demand. In one survey, two-thirds of homeowners said regular upkeep could have prevented costly repairs in the previous year.
Franchising Offers a Lower-Risk Entry Point
Starting a business from scratch feels like high stakes. Franchising minimizes failure by providing a proven business model, brand recognition, and a support system that dramatically lowers the risk.
With a home service franchise with Neighborly® you get:
- A business model that’s already working, backed by real-world performance
- Built-in brand trust
- Marketing and operational support
- Vendor partnerships and discounts
- Training and coaching
These benefits eliminate much of the guesswork of owning a home services franchise, and the costly trial and error that independent businesses often face.
Franchise Owner Success Rates Are Higher Than You Think
A key benefit of franchising is its high success rate. Franchise businesses often have a higher success rate than most independent startups. That's because they're based on established systems, proven customer demand, and a network of support.
At Neighborly, our franchise brands are built for resilience and long-term growth. Whether you're new to business ownership or looking to expand your portfolio, Neighborly offers multiple home service franchise opportunities designed to succeed—even during economic downturns.
Franchise owners benefit from the support and resources provided by established brands like Neighborly, which helps them efficiently expand their businesses.
Franchise Support That Sets You Up for Success
What makes Neighborly stand out? Simple: white glove franchisor support. From the moment you join, you'll receive in-depth training and ongoing guidance. That includes:
- Marketing and PR support
- Localized advertising campaigns
- Vendor and equipment sourcing
- Business coaching and strategic planning
With Neighborly, this support doesn't stop after launch—it continues throughout your journey as a franchise owner. In uncertain economic climates, that kind of backing can make all the difference.
Demand Awaits. Start a Recession-Resilient Home Service Franchise Today
If you're looking for a lower-risk business that can offer recurring revenue, strong demand, and long-term stability, a home service franchise might be the smartest fit. A home service franchise can provide you with the support and training needed to succeed in this lucrative industry.
There are many different opportunities to consider when evaluating various franchise options within the home service industry. It's important to analyze these opportunities to find a franchise that aligns with your goals, interests, and financial situation.
Download our free Recession Planning eBook and take your first step toward owning a recession-resilient business and being your own boss.
