UK Orders Twin Reviews of Franchising Rules After Vodafone Claims

The UK government has commissioned two in-depth reports into how franchising businesses are policed, as ministers weigh new laws following allegations of misconduct in the sector tied to Vodafone.

The Department for Business and Trade is working with the British Franchise Association on a study of the domestic market, according to The Guardian. It has also engaged the Centre for Economic Policy Research to analyse franchising models in operation internationally.

Both studies will feed into the government's assessment of the legal framework needed to "ensure franchisees are properly protected, while avoiding unnecessary burdens on small businesses".

The reviews follow a Guardian investigation published last December, which revealed claims that Adrian Howe, a former Vodafone employee who agreed to start a franchise in 2018, took his own life after pressure from the FTSE 100 telecoms group. Howe, a former Vodafone store manager, was found drowned days before his new franchise was due to open. His relatives said he had become convinced his deal with the multinational would prove financially disastrous.

The department has also confirmed that Lord Leong, named minister for small business and enterprise in July, has taken franchising into his portfolio. His appointment follows a January pledge by Keir Starmer to review the laws governing franchising agreements, part of the official response to the Howe case.

The Guardian's December investigation also spoke to two former Vodafone franchisees who said commission cuts imposed by the company in 2020 caused their franchise businesses to run up huge debts — debts they each said contributed to attempts on their own lives.

Those operators were among a group of 62 former Vodafone franchisees who brought a high court claim in 2024, alleging the company "unjustly enriched" itself. MPs have compared the case to the Post Office Horizon IT scandal.

In July, Vodafone settled the 19-month-old claim through a confidential agreement "without any admission of liability". Howe was not part of that litigation, which was launched after his death. His family has said it will continue pressing the government to introduce "Adrian's law", a package of new regulations for the franchising sector.

Campaigners argue franchisees are uniquely exposed under the current UK system because the law treats their small companies as equals to huge corporations, even though franchise agreements often formalise large imbalances in power between the two parties.

During an adjournment debate on franchising in July 2025, former Conservative minister John Hayes told MPs: "Franchising can be used as a method to exaggerate the power of the business at the heart of the franchise and to weaken the position of franchisees. My assertion is that is common and is particular in the case of Vodafone."

A Vodafone UK spokesperson said: "While we are sorry if any partners have had a difficult experience, we reject any suggestion that our franchisees were put under undue pressure."

"We continue to run a successful franchise operation of over 350 stores, and many of our existing franchisees have expanded their business with us by taking on additional stores," the spokesperson added. "We encourage everyone to raise issues, and we will always seek to resolve them."

Last year the company said it "wholly rejects" any suggestion that it had "knowingly or recklessly or negligently" put anybody involved with its franchise stores under unreasonable pressure. It has also called comparisons to the Post Office scandal "wholly inappropriate".

Mental health experts emphasise that suicide is usually complex and can involve many triggers.

The stakes for the sector are considerable. Franchising touches thousands of small businesses across the UK, and any new statutory duties — from disclosure requirements to dispute-resolution mechanisms — would reshape the contractual relationship between brand owners and the independent operators who run their storefronts.

With Lord Leong now holding the file, and both studies feeding a formal assessment of the legal framework, the Howe family's campaign for "Adrian's law" has moved from parliamentary debate to the machinery of government.