More Recession Roadblocks for Start-Up Business

Layoffs and job cuts create many potential business owners with the skills to run a franchise. So, you might expect to see some new start-ups with familiar names as people buy a franchise.  Not in your area?  

It seems the current economic downturn is different for franchises than previous recessions because many potential franchise owners are running into roadblocks in getting the financing and lending they need.


In fact, the International Franchise Association is predicting a 1.2% dip in the number of U.S. franchises in 2009.  The expected drop is the first year-over-year decline for the U-S franchise industry in more than a decade.  While a small decrease, it comes at a time when new franchises should be soaring!  Business groups including the IFA believe the credit crunch is to blame as lenders aren’t backing start-up businesses.  In fact, the IFA believes franchisees will borrow 27 percent less this year in the United States.


You will find a number of free streaming videos, podcasts and articles both on start-up business and franchising on  There is an entire channel dedicated to franchising at

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