Vodafone is embroiled in a legal battle after 61 current and former franchisees filed a lawsuit demanding over £120 million in damages. The franchisees, some of whom had long-standing relationships with the telecom company, accuse Vodafone of unfair treatment and breaches of their franchise agreements. They claim that since July 2020, arbitrary business decisions have severely impacted their livelihoods, with some facing financial ruin.
The legal action outlines allegations of commission cuts, poor management of financial relief, and penalties for minor infractions. The claimants argue that Vodafone’s actions breached its duty of good faith and led to significant financial and emotional hardship. Many former franchisees describe their transition from hopeful business partners to financially stressed individuals, with some facing debt, health problems, and broken personal relationships.
Andrew Kerr, one of the franchisees involved, shared how a sudden commission cut in 2023 led to the collapse of his business, leaving him deeply in debt and physically ill. Similarly, Donna Watton, who transitioned from store manager to franchisee, saw her store’s profits plummet by 40%, driving her into nearly £100,000 of debt.
Other franchisees have cited arbitrary fines, mismanagement of government relief during the pandemic, and even the repossession of stores without clear explanation. These practices are believed to have caused widespread emotional and financial distress.
In response, Vodafone denies the allegations, stating that while some franchisees faced challenges, it believes the majority have been successful and that issues were addressed when raised. The telecom giant has vowed to defend itself in court, but the franchisees remain determined to seek justice and hold the company accountable.
