MPs to Question Vodafone Over Alleged Unjust Treatment of Store Franchise Owners
MPs are set to question Vodafone in Westminster on 21 January regarding allegations of unjust treatment of store franchise owners, a meeting initially reported by Sky News. The Guardian reports that there have been suicide and attempted suicide cases linked to Vodafone franchise agreements, prompting government consideration of new laws aimed at rebalancing power in franchise deals.
In 2024, 62 former Vodafone franchisees filed a high court claim alleging that Vodafone cut sales commissions in 2020, acted in bad faith, imposed fines for minor errors, and pressured them to take loans and government grants. MPs representing affected constituencies, including Sir John Hayes, Luke Akehurst, and Richard Tice, have urged Vodafone to appear in Parliament.
Vodafone has stated that it is working to resolve the complex dispute, having offered a substantial payment to clear debts for the claimants. The company remains open to further talks while denying any undue pressure on franchisees. In September, Vodafone offered settlements to some former franchisees outside the main group and launched its fourth investigation into the franchising division.
A survey conducted in September 2020 revealed that 78 out of 119 franchisees left the operation, with many criticizing the mental health impact of Vodafone's actions. Despite these issues, Vodafone maintains that the franchise operation is successful, with existing franchisees continuing to expand, and it expresses willingness to discuss and resolve issues with claimants.
