Because of the poor economy and limited corporate job prospects, “It’s a time when people’s entrepreneurial spirit rises up,” said Planet Smoothie president Bret Eldridge. “We think it sort of rouses the American spirit. People are looking for some kind of control.”

While the credit crunch limits many seeking the franchise systems that require lease or real-estate as well as 6 and 7 figure investments, there are several great opportunities for under five or ten thousand dollar initial fees.  Franchisors are pressing their search for qualified candidates. With business loans harder to come by due to tight credit markets, many would-be franchisees have been unable to borrow and buy their own franchise. 

Industry experts expect the credit crunch to continue, thwarting some franchise purchases. Observers say this comes at a time when interest in franchising is normally high because of the poor economy and limited corporate job prospects.

But those in industries such as print, advertising, and newspapers will find a Hometowntimes.com online community franchise a refreshing change to both the job market generally, and the state of the old journalism career path specifically.  Those searching for "what's next in journalism" should explore the proven model of an attractive franchise system which offers control over their lives after layoffs, buyouts and uncertainty. For some people, franchising is considered an easier entry point into self-employment because the franchisor offers a formula to operate the business. It has been referred to as “entrepreneurship with training wheels.”

Franchise start-up costs vary widely, depending on the business and location, with some requiring investment of less than $10,000 (a Hometowntimes.com franchise has an initial fee for a limited time of only $4,995.00.)  Other can require near $1 million. Franchisors typically require the franchisee to have a specified net worth as well as liquid assets. Expenses include a franchise fee, building furnishings, inventory, equipment, marketing, and insurance.  A hometowntimes.com internet-based business is a work-at-home opportunity in the local community.  So, additional startup expenses are more affordable, as well.

“We’ve always seen franchising do well in recessionary times and in tough economies as people are laid off or need to find another career option,” said Alisa Harrison, spokesperson for the International Franchise Association in Washington.

“We certainly expect that to happen this time, but probably at a slower pace because of the credit situation.”

Jeff Elgin, founder and CEO of FranChoice, a company that matches prospective franchisees with franchisors, said the number of people searching for franchising opportunities declined beginning in the second half of 2007, when the economy was still booming. He said that’s probably because people had become complacent due to high-paying jobs and growing 401k plans and weren’t looking to change careers.

The decline continued through last year, perhaps because tighter credit stifled interest, so the prospect pool in 2008 was only half what it was in 2006, Elgin said.

“Normally, during a decline, you’d see a very large resurgence in interest,” Elgin observed. “But this time, with the credit crunch, it’s really unique.”

Many qualified people, he said, “are having a Dickens of a time.”

Strickling (a Suwanee, GA resident considering a franchise opportunity in the fast food sector) said the timing is right for her to go out on her own. The former high school math teacher has the funds, and her children are older, requiring less time.  Strickling sold some beachfront rental property and that would help her pay for a franchise. “Otherwise,” she said, “I think it would be a struggle.”