Sacramento Bee:

Franchisers hampered by frozen credit, skittish consumers and a lingering recession are selling and renewing far fewer franchises than this time last year.

In California, franchise registrations filed with the state Department of Corporations from January to its April 20 deadline were down 21 percent from the same time last year, from 151 to 119. Renewals were down 20 percent, from 804 to 640, the state Department of Corporations reported.

Franchise lending plunged 40 percent nationwide from last year, according to the International Franchise Association, a Washington, D.C.-based trade group.

“Credit – that’s the big barrier right now,” said Alisa Harrison, an association spokeswoman. “Lenders are slowing it down, the risk analysis is much higher. Franchisers are… waiting for the credit crisis to dissipate.”
Add the economy to the list of culprits, said Department of Corporations spokesman Mark Leyes. Continue reading.

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