The UK government has initiated a comprehensive assessment of franchising sector regulations following high-profile allegations involving Vodafone franchisees. The Department for Business and Trade is conducting two parallel studies to evaluate the current legal framework and international models, with findings expected to inform potential legislative changes.
The government action was prompted by a Guardian investigation earlier this year that detailed claims involving Adrian Howe, a former Vodafone employee who agreed to establish a franchise in 2018. Howe’s death occurred days before his franchise was scheduled to open, with family members stating he had concerns about the financial viability of the agreement. The investigation also featured accounts from two other former Vodafone franchisees who described how commission reductions affected their businesses.
These developments connect to a broader legal dispute involving 62 former Vodafone franchisees who filed a High Court claim in 2024 alleging the company improperly enriched itself. Vodafone reached a confidential settlement of the dispute in July without acknowledging liability. Howe’s family has indicated they intend to continue advocating for regulatory changes to protect franchisees, proposed as “Adrian’s law.”
Campaigners have highlighted concerns that existing UK law treats franchisees as equals to parent companies despite often significant power imbalances embedded in franchise agreements. Lord Leong, appointed as minister for small business and enterprise in July, has been assigned franchising oversight as part of his responsibilities. Prime Minister Keir Starmer had pledged in January to review franchising laws in response to the allegations.
Vodafone stated it rejects suggestions of undue pressure on franchisees and noted it operates over 350 franchise stores. The company maintained that multiple existing franchisees have expanded their operations with the company and disputed comparisons to other recent corporate conduct scandals.
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