B.E.'s 25 most affordable franchises: recession-resistant industries and low startup costs make these opportunities our top picks.

"IT'S REALLY ALL ABOUT THE KIDS," says Dawna Kelly, owner of an Abrakadoodle art education franchise in Canton, Michigan. "The light that's in their eyes when they know they've created something on their own--it's a sight to see."

Using materials, training, and curriculum developed by the franchisor, Dawna and her four-person team serve children from 20 months to 12 years old in the Detroit metro area by contracting with community centers and schools. Dawna's clients include all the elementary schools in Belleville, Michigan; the Redford Community Center; the Summit Recreation Center in Canton; and Focus Hope Center for Children.

Business is better than expected, says Dawna, who with her husband, A1, came up with the $65,000 franchise fee and working capital requirement by pooling their savings and taking out a small business loan. It's been money well spent. Launched in May 2007, the franchise generated roughly $100,000 its first 12 months in business. Moreover, Dawna expects to double annual revenues to $200,000 and increase the number of teachers on staff to eight.

"A lot of schools are actually de-emphasizing art education," says the 40-year-old Spelman graduate. "They're taking art out of the classroom because of budgetary constraints. I thought 'What an opportunity to partner with schools who want to bring art back on a smaller scale, or for parents who still want to provide art to their child through the community or recreation center.' Art is incredibly important because it teaches a child how to be creative. We emphasize creativity in our classes."

Dawna's franchise is in one of the healthier sectors of this otherwise ailing economy, and there's a genuine need for her service. Since it's rare to find a stay-at-home mom or dad these days, daycare and recreation centers have become hubs for supervised youth activities. And when state and city budgets get slashed, public school arts programs are often the first to be cut.

Like Dawna, a growing number of entrepreneurs have jumped into franchise ownership in sectors that are poised to flourish in these tough times. For that reason, BLACK ENTERPRISE has identified the most affordable franchises in these industries. Our editors consulted with franchisors, franchisees, industry experts, and trade associations to come up with 25 lucrative franchising opportunities. We gave extra consideration to franchises with minority outreach programs, and to the many that participate in the MinorityFran initiative of the International Franchise Association, the industry trade group in Washington, D.C. MinorityFran works to broaden awareness of franchising within minority communities and to increase the numbers of minority franchise owners, employees, and suppliers.

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FEEL THE HEAT

The franchising sector is as prolific as ever. The total number of franchised business locations in the U.S. now exceeds 900,000, creating some 21 million jobs and $2.3 trillion in total economic output, according to the IFA, which also states that franchising accounts for about 11.5% of the entire U.S. economy. And the current economic environment has made this business sector a viable option for aspiring entrepreneurs. "When traditional investments--either equity markets like the stock market or investments like real estate--don't perform as well as they did in the past, people start to look at other places to put their money," says Matthew Shay, IFA's president. "That makes franchising a more attractive alternative as well."

Rising unemployment also contributes to the sector's growth, as laid-off workers create their own jobs through entrepreneurship. "People who have been downsized, right-sized, outsized--voluntarily or involuntarily--have in many cases turned to franchising as a way of securing their economic future," says Shay.

But the world of franchising is large. Where are the hot spots? According to Darrell Johnson, president of FRANdata, which provides information and analysis for the U.S. franchise industry, a few areas enjoy solid growth and some appear recession-resistant as well:

* Pet services, including grooming and dog walking

* Child-focused enterprises, such as juvenile fitness programs, educational tutoring or test prep, and daycare services

* Business services such as commercial cleaning and lawn care

* Personal services such as fitness centers, health programs, and beauty salons

* Business-to-Business, including franchises specializing in outsourcing--virtual assistants, law and tax services, and tech consulting

* Residential lawn care, landscaping, and housecleaning, among others.

Much of the growth in these areas is a result of busy baby boomers and Generation Xers, groups looking to enjoy what free time they have while living longer, healthier, more affluent lives. And many of them are working parents who must find caregivers for their children. "There is a lot more growth in service areas--professional services, personal services, residential services--things that make life easier for people in general," says Johnson. "There is no reason to think that the service sector is going to slow down, whether the economy is going up or down, because most people want to use their time more efficiently."

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Shay agrees. "I think all of these categories--child-focused services, residential services, personal services, and business-to-business kinds of things--speak to the lifestyle of today's America and the desire to do things more quickly."

FLEX APPEAL

Walk the parks or beaches of Los Angeles and you may find joggers in step with the cadent commands of a drill sergeant-like instructor. Others may be doing calisthenics, weight training, or running obstacle courses. Fitness and personal care are big parts of the franchise world that perform well in just about any economic climate.

Fitness is big business. The number of health clubs has increased more than 250% over the last 10 years, according to the International Health, Racquet and Sportsclub Association. According to IHRSA, memberships have declined but, despite the economy, club revenues have actually gone up. "There is no sure way to see how membership will be affected in 2008, but having a health club membership is not a luxury--it's an investment in your health," says Kara Thompson, an IHRSA representative.

Danisha Hairston got into the industry more by happenstance than design. The 33-year-old has long been a fitness enthusiast and thought the Extreme Boot Camp workout regimen was a good way to keep in shape. "I did the one in Santa Monica, and every day I'd tell the owner he was such a brilliant man. I didn't realize then that it was franchised," recalls the Howard University graduate. "At some point the owner said, 'I'm really not that brilliant. I bought a franchise as an investment: I had that 'aha' moment, Oprah talks about. It was exactly what I needed to be doing."

The former actress and substitute teacher scraped together the $70,000 franchise fee, even asking friends and family to help. "I had never asked anyone for money before, and I thought if I come to them with this idea that I really believe in, they'll support it. And they did." Hairston now owns an Extreme Boot Camp location in downtown Los Angeles. The franchise has only been open since April, but she has already paid back much of the money she borrowed. To date, Hairston says she averages $50,000 to $60,000 per month in revenues, of which about $12,000 to $15,000 is profit. With five full-time employees, Hairston maintains about 50 clients per month (the franchise average is 20 to 25).

Clients pay $500 for the six-week program, and each session lasts about an hour, five days a week. Before starting, participants undergo strength, endurance, and body assessment tests, and weight and body fat is measured. Fitness level determines a client's placement as beginner, intermediate, or advanced. "We do everything outdoors," says Hairston, rain or shine. "We use the environment. For example, my location is near the Staples Center, so some days we go to the Center and do most of the class there. Unlike the gym where you go and do your own thing, we watch the people who need more attention and help. But they also push themselves because they compete with the person next to them. Even the people who say they're not competitive still compete."

Although our list cites affordable options such as Abrakadoodle and Extreme Boot Camp, franchise owners put in 18-hour days to remain competitive and achieve success. Call it sweat equity.

Additional reporting by Tennille H. Robinson and LaToya M. Smith

B.E.'s Most Affordable Franchises

FRANCHISE                                         TELEPHONE

Business Services

The Entrepreneur's Source                    800-289-0086 x2165
Liberty Tax Service                             877-285-4237
Money Mailer Franchise Corp.                    714-889-4694
Instant Tax Service/ITS Financial
   L.L.C.                                       888-870-1040
Valpak Direct Marketing Systems Inc.         800-237-6266 x3121
Geeks on Call America Inc.                      800-905-GEEK
RDTC Inc (Roni Deutch Tax Center)               866-738-2289
FranNet                                          800-FranNet
ServiceMaster Clean                             800-255-9687
Jan-Pro Cleaning Systems                        866-355-1064
Millicare                                       817-266-9999
Sparkle Wash                                    800-321-0770

Children's Services

Abrakadoodle Inc.                               703-860-6570
Ident-A-Kid                                   800-890-1000 x101
Jumping J-Jays Castles & Slides                 877-822-7853

Consumer Services

Lawn Doctor Inc.                                866-LAWN-DOC
DoodyCalls Pet Services                         800-366-3922
Doo Care Pet Services                           866-663-6916

Health & Beauty

Fantastic Sams Hair Salons                      877-383-3831
Regal Nails Salon & Spa L.L.C.                  888-414-NAIL
Extreme Boot Camp                               818-790-7511
Curves                                          800-848-1096

Home Services

Homekeepers International                       507-252-8117
Always Best Care (Senior Services)              888-430-2273
Comfort Keepers                                 888-801-1121

                                                     WEB
FRANCHISE                                          ADDRESS

Business Services

The Entrepreneur's Source                   www.esourcecoach.com
Liberty Tax Service                           www.libedytax.com
Money Mailer Franchise Corp.                 www.moneymailer.net
Instant Tax Service/ITS Financial
   L.L.C.                                 www.instanttaxservice.com
Valpak Direct Marketing Systems Inc.      www.valpakfranchising.com
Geeks on Call America Inc.                   www.geeksoncall.com
RDTC Inc (Roni Deutch Tax Center)               www.rdtc.com
FranNet                                        www.frannet.com
ServiceMaster Clean                      www.servicemasterclean.com
Jan-Pro Cleaning Systems                       www.jan-pro.com
Millicare                                     www.millicare.com
Sparkle Wash                                 www.sparklewash.com

Children's Services

Abrakadoodle Inc.                           www.abrakadoodle.com
Ident-A-Kid                                  www.ident-a-kid.com
Jumping J-Jays Castles & Slides              www.partycastle.com

Consumer Services

Lawn Doctor Inc.                         www.lawndoctorfranchise.com
DoodyCalls Pet Services                      www.doodycalls.com
Doo Care Pet Services                          www.doocare.com

Health & Beauty

Fantastic Sams Hair Salons                  www.fantasticsams.com
Regal Nails Salon & Spa L.L.C.               www.regalnails.com
Extreme Boot Camp                          www.extremebootcamp.com
Curves                                         www.curves.com

Home Services

Homekeepers International              www.homekeepersinternational.com
Always Best Care (Senior Services)         www.alwaysbestcare.com
Comfort Keepers                            www.comfortkeepers.com

FRANCHISE                                           TYPE

Business Services

The Entrepreneur's Source                Franchise Business Coaching
Liberty Tax Service                        Retail Tax Preparation
Money Mailer Franchise Corp.             Direct Response Advertising
Instant Tax Service/ITS Financial
   L.L.C.                                      Tax Preparation
Valpak Direct Marketing Systems Inc.       Direct Mail Advertising
Geeks on Call America Inc.              Computer Service and Support
RDTC Inc (Roni Deutch Tax Center)              Tax Preparation
FranNet                                          Consulting
ServiceMaster Clean                    Commercial/Residential Cleaning
Jan-Pro Cleaning Systems               Commercial/Residential Cleaning
Millicare                                    Commercial Cleaning
Sparkle Wash                           Commercial/Residential Cleaning

Children's Services

Abrakadoodle Inc.                        Child-focused Art Education
Ident-A-Kid                                    Child Security
Jumping J-Jays Castles & Slides          Child-focused Entertainment

Consumer Services

Lawn Doctor Inc.                          Lawn Care and landscaping
DoodyCalls Pet Services                           Pet Care
Doo Care Pet Services                             Pet Care

Health & Beauty

Fantastic Sams Hair Salons                       Hair Salon
Regal Nails Salon & Spa L.L.C.           Nail Salon or Beauty Salon
Extreme Boot Camp                              Fitness Centers
Curves                                         Fitness Centers

Home Services

Homekeepers International                      Health Services
Always Best Care (Senior Services)             Health Services
Comfort Keepers                                Health Services

                                                   STARTUP
FRANCHISE                                           COSTS

Business Services

The Entrepreneur's Source                          $80,000
Liberty Tax Service                            $53,800-$66,900
Money Mailer Franchise Corp.                       $54,000
Instant Tax Service/ITS Financial
   L.L.C.                                      $39,000-$89,000
Valpak Direct Marketing Systems Inc.          $60,200-$107,300
Geeks on Call America Inc.                         $60,000
RDTC Inc (Roni Deutch Tax Center)                  $60,000
FranNet                                        $15,000-$40,000
ServiceMaster Clean                           $18,970-$57,3000
Jan-Pro Cleaning Systems                       $2,850-$40,000
Millicare                                     $94,000-$128,000
Sparkle Wash                                   $35,000-$50,000

Children's Services

Abrakadoodle Inc.                              $45,000-$70,000
Ident-A-Kid                                    $25,000-$50,000
Jumping J-Jays Castles & Slides                    $19,000

Consumer Services

Lawn Doctor Inc.                              $107,600-$110,700
DoodyCalls Pet Services                        $47,230-$69,920
Doo Care Pet Services                          $38,400-$70,000

Health & Beauty

Fantastic Sams Hair Salons                     $50,000-$75,000
Regal Nails Salon & Spa L.L.C.                $86,000-$234,000
Extreme Boot Camp                              $55,000-$79,000
Curves                                         $38,200-$44,600

Home Services

Homekeepers International                      $24,500-$34,500
Always Best Care (Senior Services)             $34,500-$52,000
Comfort Keepers                                $59,000-$89,000