UK orders reviews of franchising sector after Vodafone allegations
The UK government has commissioned two in-depth studies into how the franchising sector is regulated, as ministers weigh new legislation following allegations about Vodafone's treatment of franchisees. The move follows a Guardian investigation last December revealing claims that Adrian Howe, a former Vodafone employee who began a franchise in 2018, took his own life after coming under pressure from the company, prompting a pledge from Keir Starmer in January to review franchising laws.
The Department for Business and Trade is working with the British Franchise Association on a study of the UK market, alongside a separate international analysis by the Centre for Economic Policy Research, both intended to inform whether the legal framework needs strengthening to protect franchisees without overburdening small businesses. Lord Leong has been given responsibility for franchising as part of his ministerial brief. The case has drawn comparisons to the Post Office Horizon scandal, after 62 former Vodafone franchisees brought a High Court claim over alleged "unjust enrichment" following 2020 commission cuts, which was settled confidentially in July without admission of liability; Howe's family, who were not part of that claim, continue to campaign for an "Adrian's law". Vodafone says it rejects claims of undue pressure on franchisees.
- Government orders two reviews of UK franchising regulation and practices
- Follows claims Vodafone pressure contributed to a franchisee's suicide
- Vodafone settled a separate 62-claimant court case in July, denying liability