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 Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Companies to Consider
Blossom Home Care
Operational break even from 6 to 7 months and pay back between to 3 and 3.5 years
Discussed at interview stage
The Design Print Distribution...
Turnover circa £120,000. 30% profit level
BT Local Business
£1-2m t/o, 10-20% profit
Yes, via high street banks
Available upon request
This would be discussed at interview stage
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added one day ago | 2 min read
Added 4 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