Former Vodafone Franchisees Launch High Court Claim Alleging Unjust Enrichment and Mental Health Impact
Sixty-two former Vodafone franchisees have brought a High Court claim alleging that Vodafone unjustly enriched itself by slashing commissions, with claimed damages between £78 million and £85 million, initially £120 million. Vodafone describes the dispute as a commercial matter and has apologized to claimants who blame pressure from the company for triggering suicidal thoughts.
A September 2020 survey of 119 franchisees found that 78 who left highlighted a deterioration in mental health linked to Vodafone's actions. Adrian Howe, a long-time Vodafone employee who transitioned to being a franchisee, died in August 2018. His family believes that pressure from franchise obligations contributed to his death, which a postmortem cited as involving a history of anxiety, depression, and stress from starting a new business. Howe’s death occurred shortly after planned store openings in September 2018. His family questions Vodafone's benevolent narrative and notes the personal guarantee he provided for the franchise.
In 2018, over 400 Vodafone UK retail outlets were moved to franchisees, with many store owners facing high costs and personal guarantees amid fears of financial ruin. Rachael Beddow-Davison, who ran stores in Lincoln, Gainsborough, and others, reported receiving a November 2022 email detailing unmet promises and losses, which was followed by a suicide attempt. Vodafone allegedly did not promptly release her from the agreement and later threatened termination; the company denies putting undue pressure on her.
Dan Attwal, a former franchisee who ran stores in Cannock, Burton, and Derby, reported losing about £250,000 and facing pressure to take on a third store despite health issues. He also attempted suicide. Vodafone states that penalties are not for profit and that it has regulatory obligations.
Vodafone has begun settlements with some former franchisees outside this main claim. December 2024 disclosures show £4 million in goodwill payments and a further £17 million since 2020. The company maintains that it did not unduly pressure franchisees and asserts that its franchise operation remains successful, with ongoing store openings.
Vodafone is a FTSE 100 company with a €37 billion turnover. The shift to franchising was part of its strategy to free itself from operating its own retail network.
