{"id":593336,"date":"2026-08-23T08:34:15","date_gmt":"2026-08-23T08:34:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/593336\/"},"modified":"2026-08-23T08:34:15","modified_gmt":"2026-08-23T08:34:15","slug":"uk-orders-reviews-of-franchising-sector-after-vodafone-allegations-vodafone","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/593336\/","title":{"rendered":"UK orders reviews of franchising sector after Vodafone allegations | Vodafone"},"content":{"rendered":"<p class=\"dcr-1s160rg\">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.<\/p>\n<p class=\"dcr-1s160rg\">The action follows <a href=\"https:\/\/www.theguardian.com\/business\/2025\/dec\/08\/ex-vodafone-franchisees-mental-health\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">a Guardian investigation last December<\/a>, which revealed claims that Adrian Howe, a former Vodafone employee who had agreed to start a franchise in 2018, had taken his own life after pressure from the FTSE 100 telecoms group.<\/p>\n<p class=\"dcr-1s160rg\">The Department for Business and Trade is understood to be working with the British Franchise Association on a study of the domestic market, while it has also engaged the Centre for Economic Policy Research to analyse different models in operation internationally.<\/p>\n<p class=\"dcr-1s160rg\">Both studies will feed into the government\u2019s assessment of the legal framework required to \u201censure franchisees are properly protected, while avoiding unnecessary burdens on small businesses\u201d.<\/p>\n<p class=\"dcr-1s160rg\">The developments come as the department said that Lord Leong, who was named in July as <a href=\"https:\/\/members.parliament.uk\/member\/4959\/career\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">minister for small business and enterprise<\/a>, has been handed franchising as part of his portfolio.<\/p>\n<p class=\"dcr-1s160rg\">His appointment follows a pledge in January by Keir Starmer to <a href=\"https:\/\/www.theguardian.com\/business\/2026\/jan\/07\/starmer-vows-to-review-franchise-legislation-in-response-to-vodafone-case\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">review laws governing franchising agreements<\/a>, as part of the official response to the Howe case. The former Vodafone store manager was found drowned days before his new franchise was due to open its doors when his relatives said he had become convinced his deal with the multinational company would prove financially disastrous.<\/p>\n<p class=\"dcr-1s160rg\">December\u2019s Guardian investigation also spoke to two former <a href=\"https:\/\/www.theguardian.com\/business\/vodafonegroup\" data-link-name=\"in body link\" data-component=\"auto-linked-tag\" rel=\"nofollow noopener\" target=\"_blank\">Vodafone<\/a> franchisees who recounted that commission cuts by the company in 2020 had caused their franchising companies to run up huge debts, which they each said contributed to them making attempts on their own lives.<\/p>\n<p class=\"dcr-1s160rg\">They were among a group of 62 former Vodafone franchisees who brought a<a href=\"https:\/\/www.theguardian.com\/business\/2024\/dec\/10\/vodafone-store-managers-debts-franchise-operators-legal-claim\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\"> high court claim<\/a> in 2024, alleging the company \u201cunjustly enriched\u201d itself and which <a href=\"https:\/\/hansard.parliament.uk\/Commons\/2025-07-02\/debates\/C0DFB6C5-9907-4241-AA5F-900381038365\/CorporateBusinessesAndFranchiseesRegulatoryEnvironment?highlight=vodafone#contribution-98B3856B-5E75-4364-8AC0-9F2B0358702C\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">MPs have compared<\/a> to the Post Office Horizon IT scandal.<\/p>\n<p class=\"dcr-1s160rg\">In July, Vodafone <a href=\"https:\/\/www.theguardian.com\/business\/2026\/jul\/16\/vodafone-settles-legal-claim-brought-by-62-former-franchisees\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">settled the 19-month-old court claim<\/a> via a confidential agreement \u201cwithout any admission of liability\u201d. Howe was not included in that claim, which was launched after his death, but his family has since said they will continue to press the government to <a href=\"https:\/\/www.theguardian.com\/business\/2026\/jul\/26\/vodafone-adrian-howe-adrians-law-protect-franchisees\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">introduce an \u201cAdrian\u2019s law\u201d<\/a> to incorporate new regulations to govern the franchising sector.<\/p>\n<p class=\"dcr-1s160rg\">Campaigners have argued that franchisees are uniquely exposed under the current UK system as the law treats their small companies as equals to huge corporations \u2013 even though there are often large imbalances in power formalised within the franchise agreements that govern the relationship between both parties.<\/p>\n<p class=\"dcr-1s160rg\">During an adjournment debate on franchising in July 2025, the <a href=\"https:\/\/www.theguardian.com\/business\/2025\/jul\/04\/uk-government-closely-watching-franchise-operators-120m-legal-claim-against-vodafone\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">former Conservative minister John Hayes told MPs<\/a>: \u201cFranchising can be used as a method to exaggerate the power of the business at the heart of the franchise and to weaken the position of franchisees. My assertion is that is common and is particular in the case of Vodafone.\u201d<\/p>\n<p class=\"dcr-1s160rg\">A Vodafone UK spokesperson said: \u201cWhile we are sorry if any partners have had a difficult experience, we reject any suggestion that our franchisees were put under undue pressure.<\/p>\n<p><a data-ignore=\"global-link-styling\" href=\"#EmailSignup-skip-link-13\" class=\"dcr-76akua\">skip past newsletter promotion<\/a>Free newsletter | Every weekday<\/p>\n<p class=\"dcr-vf9hps\">Sign up to Business Today<\/p>\n<p class=\"dcr-1r7my33\">Get set for the working day \u2013 we&#8217;ll point you to all the business news and analysis you need every morning<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/06\/1782306728_295_500.jpg\" alt=\"\" loading=\"lazy\" decoding=\"async\" class=\"dcr-xiq31o\"\/><\/p>\n<p id=\"EmailSignup-skip-link-13\" tabindex=\"0\" aria-label=\"after newsletter promotion\" role=\"note\" class=\"dcr-76akua\">after newsletter promotion<\/p>\n<p class=\"dcr-1s160rg\">\u201cWe continue to run a successful franchise operation of over 350 stores, and many of our existing franchisees have expanded their business with us by taking on additional stores. We encourage everyone to raise issues, and we will always seek to resolve them.\u201d<\/p>\n<p class=\"dcr-1s160rg\">The company said last year it \u201cwholly rejects\u201d any suggestion that it had \u201cknowingly or recklessly or negligently\u201d put anybody involved with its franchise stores under unreasonable pressure.<\/p>\n<p class=\"dcr-1s160rg\">Mental health experts emphasise that suicide is usually complex and can often involve many triggers.<\/p>\n<p class=\"dcr-1s160rg\">The company has added that comparisons to the Post Office scandal are \u201cwholly inappropriate\u201d.<\/p>\n<p class=\"dcr-1s160rg\"> In the UK and Ireland, <a href=\"https:\/\/www.samaritans.org\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Samaritans<\/a> can be contacted on freephone 116 123, or email <a href=\"https:\/\/www.theguardian.com\/business\/2026\/aug\/23\/mailto:jo@samaritans.org\" data-link-name=\"in body link \" https:=\"\" rel=\"nofollow noopener\" target=\"_blank\">jo@samaritans.org<\/a> or <a href=\"https:\/\/www.theguardian.com\/business\/2026\/aug\/23\/mailto:jo@samaritans.ie\" data-link-name=\"in body link \" https:=\"\" rel=\"nofollow noopener\" target=\"_blank\">jo@samaritans.ie<\/a>. In the US, you can call or text the <a href=\"https:\/\/988lifeline.org\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">National Suicide Prevention Lifeline<\/a> on 988, chat on <a href=\"https:\/\/988lifeline.org\/chat\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">988lifeline.org<\/a>, or <a href=\"https:\/\/www.crisistextline.org\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">text HOME<\/a> to 741741 to connect with a crisis counselor. In Australia, the crisis support service <a href=\"https:\/\/www.lifeline.org.au\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">Lifeline<\/a> is 13 11 14. Other international helplines can be found at <a href=\"http:\/\/www.befrienders.org\/\" data-link-name=\"in body link\" rel=\"nofollow noopener\" target=\"_blank\">befrienders.org<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Ministers have commissioned a pair of in-depth reports into how franchising businesses are policed in the UK, as&hellip;\n","protected":false},"author":2,"featured_media":593337,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-593336","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=593336"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/593337"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=593336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=593336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=593336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}