The debt doesn't end when the franchise does. Whether the franchise is terminated, not renewed or simply closes, any finance you've taken out still has to be repaid.
Start Up Loans
A Start Up Loan is a personal loan. You repay it personally, whatever happens to the business. See Do I still have to repay if my business closes?
Business loans
The lender can ask the business to repay. If you gave a personal guarantee, the lender can ask you to pay what the business can't. See Will I have to give a personal guarantee?
Asset finance
The finance company can usually take back the van or equipment. You may still owe any shortfall.
What to do
- Talk to your lenders early, before you miss a payment. See What if my business can't make its loan repayments?
- Read your franchise agreement: what happens on termination, and any restrictions after you leave. See Are franchise non-compete clauses enforceable?.
- Consider selling rather than closing, if the agreement allows it. See Can I sell my franchise later?.
- Get advice: free debt advice is available from services such as Business Debtline.
Last reviewed: 8 October 2026