UK Government Orders Franchise Sector Reviews Following Vodafone Allegations

UK Government Examines Franchise Practices After Vodafone Scandal

The British government has decided to review how the franchise sector is overseen in the UK following serious allegations about conduct in the industry. This decision was taken after a Guardian investigation in December, which showed that a former Vodafone employee, Adrian Howe, who was preparing to open a franchise in 2018, died by suicide after pressure from the FTSE 100 telecoms group.

Following the investigation, the government decided to work with the British Franchise Association to study the domestic market, as well as with the Economic Policy Centre to analyse different operating models from around the world. These studies will contribute to the government’s evaluation of the legal framework needed to „ensure that franchisees are properly protected, without unduly burdening small businesses”.

Lord Leong, appointed in July as minister for small business and enterprise, has been given responsibility for overseeing the franchise sector. This decision follows the promise made in January by Keir Starmer to review the laws governing franchise agreements, as part of the official response to the Howe case.

The former Vodafone shop manager was found dead a few days before the official opening of his franchise, after his family said he felt convinced that the contract with the multinational would have disastrous financial consequences. In the December investigation, The Guardian also spoke with two former Vodafone franchisees who said that the company’s reduction of commissions in 2020 caused franchisees to face massive debts, which contributed to their suicide attempts.

They were among the 62 former Vodafone

They were among the 62 former Vodafone franchisees who filed a claim in 2024, accusing the company of „multiplying by itself” and which were compared to the Post Office Horizon IT scandal. In July, Vodafone settled the 19-month complaint through a confidential agreement „without admitting any liability”.

Adrian Howe was not included in this claim, which was filed after his death, but his family said they will continue to pressure the government to introduce an „Adrian’s Law” to regulate the franchise sector. Activists have argued that franchisees are in a vulnerable position within the British system, because the law treats small companies as equal to large corporations, even though there are usually significant power imbalances formalised in franchise agreements that govern the relationship between both parties.

During a suspension debate in July 2025, former Conservative minister John Hayes said in front of MPs: „Franchising can be used as a method to exaggerate the power of the company that stands behind the franchise and to weaken the position of the franchisee. I am sure this is common and is especially the case with Vodafone”.