Although the store has managed to stay afloat after a drastic decline in customer sales this fall, other Metro Detroit franchises have been shuttering their doors, and new numbers from a franchise trade group say there are more closings to come.

The franchise industry expects to shrink by 10,000 establishments nationally, or 1.2 percent, in 2009, according to a new report from the International Franchise Association. Jobs in franchise businesses will fall by 2.1 percent, for a loss of 207,000 jobs. Overall economic output, which includes sales, is expected drop 0.5 percent, or $4.2 billion, to $835 billion from $839.2 billion in 2008.

Though the association doesn't keep state-by-state data, Michigan's weakened automotive economy is bound to hurt the franchise businesses that support and maintain autos, such as repair shops, car detailing services and car washes.

Definitely the coming year is going to be a bit challenging for that segment, said John Reynolds, president of the association's Educational Foundation.

A credit crunch has made it difficult to secure loans and property to open new franchise stores or expand existing ones, while a sharp drop in consumer spending spells trouble for existing franchises. Many owners have shelved plans to expand in 2009 and 2010, the report said.

The No. 1 pressure is the availability of capital, said Debi Scroggins, founder of Dexter-based Bearclaw Coffee Co., which has 21 locations in Michigan and two in Kentucky.

Franchisee applicants who would have had no trouble getting loans six to nine months ago simply can't borrow money, Scroggins said.

We have had some very qualified candidates to open franchises who, at the end of the day, just cannot cross the finish line with financing.

The credit crunch has challenged franchisees to get creative with their financing. One Bearclaw franchisee's landlord provided $80,000 in financing in exchange for an interest rate one percentage point above the market average, Scroggins said.

Meanwhile, consumers have curtailed their spending and cut back on indulgences such as coffee and ice cream as the U.S. economy spirals into the most severe recession in 25 years, according to the report.

Nobody's spending any money, Garcia said. The news doesn't make it easy by telling people to cut out things they don't need.