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 bankrupt. Does that prevent me from becoming a franchisee?
Legally you will not be prevented from becoming a franchisee, but in practice you are unlikely to become a franchisee and operate the business successfully because of the legal restrictions on a bankrupt’s ability to trade and borrow, including: • It is a criminal offence for a bankrupt to act as a director of a company, or be involved directly or indirectly in the management of a company without the court’s permission, so you would be unable to set up a company to run the franchise and would therefore be unable to benefit from limited liability. • A bankrupt has to disclose the fact that he/she is an undischarged bankrupt to anyone giving credit of over £250 and anyone he/she trades with if they use a different name to the one under which they were made bankrupt. • Even if the franchisor is happy to grant a franchise, many banks are unlikely to lend the money that may be required to cover the costs of setting up the franchise. Another thing to bear in mind is that money earned by a bankrupt will have to go to his/her trustee in bankruptcy, unless an agreement can be reached with the trustee for the retention of some of the earnings. The relatively good news is that bankruptcy usually only lasts a year, so you may be better off waiting for a year before looking to become a franchisee.
You might also be interested in
Answered by Alan Wilkinson
Alan Wilkinson writes: The short answer is no. The interesting bit is why a franchisee should actually... read more
Answered by Louise Harris
Louise Harris writes: This question is one that many have explored and much has been written on... read more
Answered by John Pratt
John Pratt writes: Virtually all franchise agreements are granted for a specific term and either contain an... read more
Answered by Shelley Nadler
Shelley Nadler writes: The answer to this will really depend on the reason your franchise is not... read more
Exciting Franchise Opportunities
Companies to Consider
£75,000 to £100,000
Fixed sites can earn up to £16,000 per month with profit margins of 65%
Bridgewater Home Care
£500,000-£1m, bottom line 20%+
My Window Cleaner
Broadway Wine Company
£648,000 per annum with a gross profit of £108,216 and EBITDA of £82,956 by Year Three
The Little Foxes Club
Personal ROI to be within 24
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 15 hours ago | 2 min read
Added 2 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