As the market reels from the latest wave of volatility—driven by rising tariffs and global supply chain disruptions—many investors are asking: what to invest in when the stock market crashes?
With the S&P 500 and Dow seeing sharp drops, high-net-worth individuals are looking for smarter, more controllable alternatives—and franchising is one that continues to stand out.
With the S&P 500 and Dow seeing sharp drops in early April following news of aggressive new tariffs on imports and the relocation of overseas labor, high-net-worth individuals are looking beyond traditional equities and asking: what are my alternatives?
If you’re wondering what to invest in when the stock market crashes, franchises that offer essential services, domestic supply chains, and low overhead are worth a closer look.
Franchising vs. the Stock Market: Control Over Your Investment
Unlike the stock market—where performance is driven by global events, corporate decisions, and speculation—franchising offers direct control. When you invest in a franchise, you’re not hoping a CEO across the country makes good decisions. You’re at the wheel.
You get to choose the location, hire the team, drive local marketing, and shape the customer experience. And in times of economic uncertainty, that level of control becomes especially valuable.
For many investors, franchising isn’t just a business. It’s a way to diversify their portfolio while building something tangible.
Why Now? Market Volatility and Tariffs Create Uncertainty
According to Politico, the recent market pullback is largely tied to new tariffs that are expected to raise prices on a wide range of consumer goods and business equipment. For investors with large equity holdings, this could mean a prolonged period of instability.
Franchising, especially in essential or recession-resistant categories, can offer a safer alternative.
What to Look for in a Recession-Resistant Franchise
Not all franchises are created equal. If you’re looking to invest in a franchise that performs well during downturns, consider:
- Simple, low-cost operations
- Domestic sourcing to avoid global supply chain issues
- Essential or recurring demand (think food, tech, home services)
- Strong Item 19 with proven earnings across multiple markets
- Scalability and opportunity for multi-unit expansion
Example: PayMore—Resilient by Design
Take PayMore, a consumer electronics resale franchise that’s exploded from 20 to over 600 units in development in just a few years. What makes it unique is its built-in supply chain: customers bring in the products.
In a time where equipment costs are rising and international shipping is unreliable, PayMore thrives by recycling inventory from local communities. It’s a franchise model that’s not only recession-resistant—it’s inflation-aware and supply chain independent.
Even better, PayMore supports semi-absentee ownership, making it a great fit for investors looking for passive income or diversification without day-to-day operations.
Example: Konala—Healthy Fast Food, Minimal Risk
Konala, a fast-growing healthy fast food brand, is another example of a lean, smart model. It operates drive-thru locations with no fryers, no grills, and no hoods—dramatically reducing equipment costs and back-of-house complexity.
Even more importantly, Konala uses Cuisine Solutions as a sourcing partner, which has major infrastructure here in the U.S. That means fewer delays, lower shipping risk, and consistent product quality.
For investors who want a brand that’s has minimal equipment and poised for scale, Konala is worth watching.
Why Franchising Resonates with High-Net-Worth Investors
According to UBS Wealth Management, HNWIs are increasingly allocating capital to alternative investments, including business ownership, to offset public market exposure.
Franchising fits that strategy perfectly:
- It’s tangible. You can walk into your investment.
- It’s controllable. You shape the outcome.
- It’s tax-advantaged. There are deductions for depreciation, operations, and reinvestment.
- It’s diversified. You’re not tied to the same market variables driving stock price swings.
Franchise Business Review also found that top recession-resistant franchises outperform others by 25% in annual earnings and score 10–40% higher in owner satisfaction.
Final Thought: Now Might Be the Time
As markets react to tariff changes and investors feel the squeeze of international uncertainty, franchising offers an asset class rooted in ownership, action, and control.
Not all franchises are built to weather uncertainty, but the right ones—especially those in Fransmart’s portfolio—are designed to be scalable, lean, and recession-resistant.
If you’re looking to pivot from passive investing to active, strategic ownership, now might be the time to explore franchising as a safer, smarter path forward.
Interested in exploring brands like PayMore or Konala? Start here: fransmart.com/franchise-brands/
