UK orders reviews of franchising sector after Vodafone allegations
Two studies will be used to shape government policy amid claims about a former franchisee who took his own life Ministers have commissioned a pair of in-depth reports into how franchising businesses are policed in the UK, as the government considers introducing new laws after high-profile allegations about conduct in the sector. The action follows a Guardian investigation last December , which…
The UK government has ordered two detailed investigations into the franchising sector following allegations against Vodafone. The Department for Business and Trade is collaborating with the British Franchise Association and the Centre for Economic Policy Research to assess the legal framework for franchisee protection. This comes after a Guardian investigation exposed claims that Adrian Howe, a former Vodafone franchisee, took his own life after experiencing pressure from the telecoms giant.
Howe had agreed to start a franchise in 2018 but was found drowned days before his new store was set to open, convinced his deal with Vodafone would be financially disastrous. Former Vodafone franchisees have also reported that commission cuts in 2020 led their franchising companies to accumulate significant debts, contributing to their attempts at suicide.
This is similar to the claims made in a high court case brought by 62 former Vodafone franchisees in 2024, which accused the company of "unjustly enriching" itself. Vodafone has settled the court claim but denies pressuring franchisees. The new investigations aim to determine if new laws are needed to safeguard franchisees and prevent them from being exploited by corporations, as they are currently treated as equals to large companies despite often facing significant power imbalances.
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