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.
Close
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 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

Start your own ActionCOACH UK franchise
Yes
Find Out MoreThis would be discussed at interview...

Request Free Information
Send a free enquiry to ActionCOACH UK for further information!

Start your own Blossom Home Care franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Blossom Home Care for further information!

Start your own Henry Sykes Auctions Franchise franchise
Yes
Find Out More£200,000

Request Free Information
Send a free enquiry to Henry Sykes Auctions Franchise for further information!

Start your own Local Eats franchise
Yes
Find Out MoreIn excess of £70,000

Request Free Information
Send a free enquiry to Local Eats for further information!

Start your own Treatz Desserts franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Treatz Desserts for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added 4 months ago | 2 min read
-
Franchise funding: How to beat the banks
Added 4 days ago | 2 min read
-
Franchise agreements: How to navigate territory rights
Added 3 weeks ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
COPYRIGHT © 2025 ARTICHOKE MEDIA LTD Registered in England and Wales No 14769147 Registered Office Address: Jubilee House, 92 Lincoln Road, Peterborough, PE1 2SN
With the publication of Getting Started in Franchising, What-Franchise.com is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialised fields before acting on any information published herein. The views and opinions expressed in Getting Started in Franchising are those of the author(s) and do not necessarily reflect the views and opinions of What-Franchise.com members or staff.
What Franchise Newsletter
Keep up to date with all the industry news