The daily economic data and headlines are scaring people into a "wait and see" mode. Unless you live in a cave, you are aware of what has transpired and this is having an impact on business development.
As you know the more people who are unemployed due to massive layoffs, the higher the competition for available franchise concepts. Those opportunity hunters who were on the fence in the past, have now been pushed over and are beginning to look for a franchise business as an alternative to rejoining the soft workforce. One area that needs to be secured up front is financing. You need to be funded properly to be considered by a franchisor.
Unfortunately, a many people believe that their banks have no money to lend (or in some cases, in the vault). While this is not entirely true, the perception is there. The truth is that the SBA is still making loans to qualified people who have good credit and some assets, but the perception is there and slowing some people down. But there are alternatives.
"Peer-to-Peer" lending is becoming a more popular way for you to borrow up to $25,000 to fund or to supplement other financial resources to buy a franchise. If you're unfamiliar with peer-to-peer lending, the two most popular sites are: Prosper.com and Fynanz.com.
Rates can be very reasonable for folks with good credit. Loans are made to those with less than stellar credit at higher rates, but the loan gets done.
Even though credit markets are tight, there are still funds available. You need to seek them out and determine which is best for your circumstances.
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