Former Vodafone Franchisees Launch High Court Claim Alleging Mental Health Impact and Unjust Enrichment
Vodafone is facing a High Court claim from 62 former franchisees who allege unjust enrichment due to commission cuts implemented in 2020. The claim's value is reported to be between £78 million and £85 million, reduced from an initial £120 million.
A 2020 survey of franchisees found that 78 out of 119 respondents reported impacts on their mental health linked to Vodafone's actions. Among those affected is the family of Adrian Howe, a long-time Vodafone employee and franchisee who died in August 2018. The family attributes pressure from Vodafone as a contributing factor. A postmortem indicated drowning as the cause of death with a history of anxiety and depression. The family alleges that Howe was pressured to take on a second store and sign a personal guarantee, highlighting communications regarding the burden and promised support.
Rachael Beddow-Davison, who managed three stores in the east of England, faced financial losses across her portfolios. She suffered a suicide attempt in 2022 following alleged unkept promises and threats to terminate her agreements. Similarly, Dan Attwal, a former franchisee for stores in Cannock, Burton, and Derby, reported losing approximately £250,000 and encountering harsh penalties for minor infractions. Attwal also described a suicide attempt linked to these pressures.
Vodafone has rejected claims of undue pressure, framing the dispute as commercial and noting regulatory obligations. The company disclosed that goodwill settlements totaling £4 million since 2020 and £17 million since commission changes have been paid. Vodafone also noted that some franchisees have chosen to expand their portfolios by taking on additional stores.
