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 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
Start your own Blam Partners franchise
Yes
Find Out MoreAt least £8,000
Request Free Information
Send a free enquiry to Blam Partners for further information!
Start your own Woods Russell franchise
Yes
Find Out More£100,000
Request Free Information
Send a free enquiry to Woods Russell for further information!
Start your own PACK & SEND franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to PACK & SEND for further information!
Start your own Local Shops franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Local Shops for further information!
Start your own Explorer Franchise by Hays Travel franchise
Yes
Find Out More£35,000
Request Free Information
Send a free enquiry to Explorer Franchise by Hays Travel 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
-
How Premier Education is setting aspiring franchisees up for success
Added 2 days ago | 2 min read
-
Studio Pilates reveals the brand’s four pillars of success
Added one week ago | 2 min read
-
Everything you need to know about the health and beauty industry in 2024
Added 2 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 -
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
What Franchise Newsletter
Keep up to date with all the industry news