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This is one area that I think is pretty saturated by major players (spreadshirt, zazzle, cafepress).

However, I think there is still money to be made on a LOCAL level that would keep a business like that sustained if done correctly.

Cyberworx was the company that sold the software and advertised on this site, but they are going through a bit of a transition right now. Probably more news on that will come out in the next month or so.
 

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Spreadshirt also has a "design your own" shirt service that they license to people for a one time fee. You can also use their affiliate program to link to their t-shirt designer (if you aren't interested in doing the printing yourself).
 
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