Prime Minister Keir Starmer has pledged a review of the laws governing franchising agreements in the UK, following a tragic case linked to telecoms giant Vodafone and a major legal claim brought by dozens of former franchisees.
A Promise in Parliament
During Prime Minister's Questions on Wednesday, Starmer was directly questioned by Labour MP Johanna Baxter about the death of former Vodafone manager Adrian Howe. Baxter told the Commons that Howe, a dedicated employee of over 20 years, had agreed to take on a franchise of a thriving store in 2018.
The MP stated that the "goalposts changed" and Howe was subsequently forced to take on a struggling store instead. Just days before that store was due to open, Adrian Howe drowned. His family believe he took his own life after becoming convinced the franchise deal would lead to financial ruin.
In response to Baxter's request for a legislative review to ensure a "balance of power," Starmer said: "Obviously there’s a live legal case I can’t comment on, but I can reassure her that we’ll look closely at the final outcome of that case. There are strong rules in place, but we will look at the outcome of the case to see if there is more that can be done."
The Wider Legal Claim and Harrowing Allegations
The Prime Minister's commitment follows a Guardian investigation in December and a high-profile High Court claim filed in 2024. A group of 62 former Vodafone franchisees are alleging the FTSE 100 company "unjustly enriched" itself through its practices.
Their stories include those of Rachael Beddow-Davison and Dan Attwal, who told the newspaper that commission cuts imposed by Vodafone in 2020 caused their franchising companies to accrue huge debts. Each stated this financial pressure contributed to them attempting to take their own lives.
Some MPs have drawn comparisons between the case and the Post Office Horizon IT scandal, citing a severe power imbalance between a large corporation and individual small business owners.
Vodafone's Response and Next Steps
Vodafone, which is contesting the legal claim, issued a statement rejecting key allegations. A spokesperson said: "Our sympathies remain with the Howe family. It is simply not true to suggest that Adrian Howe was forced to take on a poorly performing store and we absolutely reject this suggestion."
The company noted it runs a successful franchise business with over 350 stores and stated that Adrian Howe was not a franchise partner at the time of his death. Regarding the group claim, Vodafone said it had tried to resolve the "complex commercial dispute" and remains open to further talks.
The government indicated last month it may consider new laws to correct imbalances in franchise agreements, describing the accounts from Vodafone franchisees as "harrowing stories." Starmer's promise in the Commons now formally commits the government to examining the outcome of the Vodafone case as a potential catalyst for legislative change.
