Two Bedford based companies offering franchise business opportunities have been placed in liquidation by the High Court following an investigation by Companies Investigation Branch ('CIB') of the Insolvency Service.

Queensbury Franchise (UK) Limited ('Queensbury') and The Richmond Franchise Co Ltd ('Franchise') sold franchise businesses which supplied various products such as confectionaries and toiletries from vending machines placed in numerous locations across the UK. Each franchise business was advertised for sale for up to £24,995 but some franchisees paid more due to purchasing more than one franchise area.

Both Queensbury and Franchise were operated and owned by the same director, Neil Richmond, who made various untried and untested claims in marketing material, sent to potential franchisees as to the expected earnings of the franchise businesses. However, the investigation found that many of the claims made were misleading and that the companies had failed to comply with their contractual obligations by not supplying the franchisees with all their vending machines and to address or provide them with adequate on-going support and training.

In relation to both companies, Mr Richmond had failed to keep adequate accounting records and to fully to co-operate with the investigation. As a result, it was not possible to establish the exact level of losses sustained by franchisees.

Queensbury Associates (UK) Limited was incorporated as a private limited company on 29 January 2004 and The Richmond Franchise Co Limited on 27 June 2006. The registered office for both companies is at 7 Mill Street, Maidstone, Kent ME15 6XW.

The petitions to wind up both companies in the public interest were presented on 23 June 2008 under Section 124A of the Insolvency Act 1986. The companies were compulsorily wound up by the Court on 23 July 2008


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