Orlando Sentinel:

The allure of owning a business, combined with the security of working with an established corporation, has for years made franchising a popular choice for budding entrepreneurs.

But for some, the recession is quashing that particular aspect of the American dream.

Usually, a downturn increases interest in franchises as people laid off from corporate jobs try opening their own restaurants, convenience stores and child-care centers.

This time, though, the tight credit market has made it difficult for would-be business owners to find financing, something that’s “really wreaking havoc on the sale of franchises,” said Alisa Harrison, a spokeswoman for the International Franchising Association.

As a result, the organization predicts a 1.2 percent decrease this year in the number of new franchises — the first decline in about 20 years, even as companies are offering franchisees more financial assistance. Quiznos, for example, announced a microloan program in May and this month, 7-Eleven started offering a 10 percent discount on franchise fees for military veterans.

After losing home equity and value in their 401(k) as the economy soured, Sabrina and Chris Boesch turned to a lease program run by Georgia-based Primrose Schools to start up their own Lake Mary franchise.

“Economically, our timing couldn’t have been worse,” said Chris Boesch, whose wife currently works as director of an Orlando Primrose School. “The money just wasn’t there… There was a lot of extra stress and worry about whether we were going to be able to be able to get a loan.” More.

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