Can't open terminal from finder folder

I know you can do this. I set the preferences keyboard shortcuts services to open new terminal in folder. I've tried this with and without actually assigning a keyboard shortcut. It's supposed to show in the folder on finder services, but I get No services apply and just a link to open services preferences (where I just had set this up). Actually, I had done this before and used it, but now for some reason nothing happens and I don't get the option. I don't get the option from any finder folder, no matter if it's in the boot or an external drive.

I read articles on how to set this up and they mentioned that right-clicking would show the option, but that doesn't happen either. So, how can I just open a terminal window from inside a finder folder so it will open automatically in that folder and I don't have to cd over to it? It's also a pain because I don't know how to easily type a terminal command that even opens on a drive other than the boot drive.

Can someone please help me with this?