The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
I’m a bankrupt. Does that prevent me purchasing a franchise?
There is nothing in principle from preventing an undischarged bankrupt from purchasing a franchise. A bankrupt can own assets and operate a business. However, there are certain things that an undischarged bankrupt cannot do. An undischarged bankrupt cannot be a director or a shadow director of a company. A shadow director is a person in accordance with whose directions or instructions the directors of a company are accustomed to act. It may be difficult for an undischarged bankrupt who is going to be involved in the management or operation of a franchise to run that franchise through a company, as he may not be able to avoid being considered a shadow director. A bankrupt cannot get credit for more than £250. Therefore, an important question is how would the bankrupt intend to fund the purchase of the franchise? It would not be possible for the undischarged bankrupt to borrow funds from a bank or other credit provider, although a loan could be obtained by a business partner or spouse. Also, it should be noted that whilst a franchisee is undischarged and for a certain period afterwards the franchisee’s trustee in bankruptcy will be able to review the bankrupt’s earnings and may decide to take some of his income. It will be important to disclose to the franchisor that you are an undischarged bankrupt. Most franchisors will carry out checks in any event.
You might also be interested in
Answered by Shelley Nadler
Shelley Nadler writes: Yes. It’s usual for the franchisor to demand the same qualifications and standards for... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: It’s quite common for two friends to go into business together and the mechanism... read more
Answered by John Pratt
John Pratt writes: There’s a view that if a franchise works in a franchisor’s home country, it... read more
Answered by Louise Harris
Louise Harris writes: Start your research ahead of your attendance. Make the show guide your key resource... read more
Exciting Franchise Opportunities
Companies to Consider
£120,000 net profit
£150,000 per year
The Zip Yard
£40,235 net profit
Available from major lenders and banks
The Spitting Pig Co
40% net profit on a turnover of £110,000
Profit of £50,000 and increasing thereafter
Potential ROI within 18 months with an average net profit of 21%
Just Shutters Business
£50,000 – £100,000 profit
Third party sources
Operational breakeven in the first month of trading and return on capital investment from approx.18 months
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 7 hours ago | 2 min read
Added 3 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news