Pet Franchises Are Recession Resistant
The Search for Recession-Proof Franchises
When contemplating the purchase of a franchise, it makes sense to seek out an opportunity that has the ability to resist market fluctuations and faddish trends. Imagine where you’d be today if, back in 1995, you had sunk ten grand into becoming a Tamagotchi dealer. Does anyone even remember those digital pets from Japan? But real pet have proven to be one of the most recession resistant industries, and that trend is expected to continue for many years to come. One advantage of this field is that a pet franchise can take so many different forms, as we will explore below.
America Loves Its Pets
Whether economic times are good or bad, sales at pet across the United States continue to grow. Last year alone, a leading pet industry organization estimated that Americans spent more than $43 billion on their pets, with more than half of that revenue being accounted for in food and accessories (the balance was made up of services and health care). Growth is expected to increase by an average of at least 13 percent per year through 2013, no matter which direction the U.S. economy moves. This figure should not be all that surprising, since close to two-thirds of every U.S. household has at least one pet – in other words, around 71 million homes. As recently as five years ago that number was 64 million, so you can see that the industry has fairly exploded over a relatively short time. The elderly matron who spends $300 on Christmas gifts for her two toy poodles is no longer the exception to the rule. With many owners showing the kind of love and dedication toward their pets as other adults express with their children, it’s no wonder that owning a pet franchise can be highly profitable.
Classifying Pet Franchise Opportunities
Say the phrase “pet franchise” to the average American and he or she will generally conjure up one of two images – either a store where pets are sold, or else one of those big-box places that are one-stop-shops for everything pet related. But along with the explosion in pet ownership has come a monumental growth spurt in the kinds of pet franchises available for sale, and it seems like more and more are being devised all the time. Pet franchises can be divided into three basic groups, with plenty of options within each category. These are “pet products”, “pet care”, and “pet health.” Pet products franchises include your standard big-box and strip mall-type storefronts that sell pet food, accessories such as leashes, collars and kitty litter, and perhaps even the little critters themselves. With the booming health food craze for people showing no signs of letting up, a number of pet franchises are popping up that offer more healthful eating alternatives for Fido and Tabby. While most people associate the term “pets” with dogs and cats – and these two classifications dominate the industry – you should also add birds, rodents and even rabbits to that mix. Pet care franchises are far more varied, especially with the work-from-home crowd getting involved in the movement. There are pet franchises that exist to train your dog, clean or clean up after your dog, walk your dog, and provide a home away from home for your dog in daycare or overnight “hotel-type” settings. Cats – err, maybe not so much. Technology and pet franchises are on pretty good terms, too, with one of the hottest trends involving the ability to keep your dog from leaving the yard without resorting to fences or leashes. Finally, pet health franchises are represented by a whole slew of veterinary clinics, both storefront and mobile. Some can be very specialized, such as the mobile pet franchise that exists solely to spay or neuter your cat. See, I knew we’d get to the felines at some point in this report. Whatever your interest, if you’re a pet lover, there’s definitely a pet franchise for you. Take a look at some of our pet franchise opportunities!