Keir Starmer has pledged to review franchising laws following claims of pressure on a former Vodafone store manager.
On Wednesday, Keir Starmer declared in the Commons that he would "look closely" at the result of a well-known lawsuit against Vodafone.
The remarks came after an investigation in December uncovered allegations that Adrian Howe, a former Vodafone employee who had consented to become a franchisee in 2018, drowned after growing certain that his agreement with the global corporation would be financially devastating.
Dan Attwal and Rachael Beddow-Davison also told the Guardian about how Vodafone's 2020 commission cuts forced their franchise businesses to accrue enormous debt, which they both said contributed to their suicide attempts.
Two of the 62 former Vodafone franchisees, Beddow-Davison and Attwal, filed a high court lawsuit in 2024, claiming the telecom corporation "unjustly enriched" itself. MPs have likened this case to the Post Office Horizon IT scam.
During prime minister’s questions on Wednesday, Johanna Baxter MP said:
“Adrian Howe was a successful and dedicated Vodafone store manager of over 20 years … he was offered the opportunity to take on a franchise of one of their thriving stores.
But then the goalposts changed and he was then forced to take on a struggling store. And just days before he was due to open that store, Adrian stepped into a lake and didn’t ever return home.
Adrian’s wife and widow, my constituent Tracey, is wondering if the prime minister will review franchising legislation to ensure there is a balance of power between companies and the franchisee so that nobody else feels undue pressure when they take on a franchise?”
Vodafone is contesting the ongoing legal suit, which does not include the Howe family.
The prime minister's pledge to review franchising regulations follows the government's announcement last month that it could look into new legislation to address the power disparity in franchise agreements in response to the "harrowing stories" of small business owners operating Vodafone stores.
A spokesperson for Vodafone 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.
Vodafone continues to run a successful franchise business, with over 350 stores today, and the majority of franchisees have expanded their business with us. At the time of his death, Adrian Howe was not a franchise partner.”
The business stated that it has made an effort to settle the "complex commercial dispute" with the 62 claimants and is still amenable to additional discussions.
What specific legal changes is the government considering for franchises?
UK ministers are considering a statutory law of practice and obligatory arbitration system for franchising agreements to address power imbalances exposed by Vodafone franchisee cases.
Business Minister Justin Madders indicated exploring fairly binding franchisee protections against unilateral commission cuts, inordinate forfeitures, and constrained loans mirroring the Post Office Horizon reproach while Labour MP Abtisam Mohamed prompted a full review akin to Australia's 2021 franchising law that authorizations good faith dealings and disagreement resolution.
Urged by 62 franchisees' £120m action and Adrian Howe's family claims of self-murder driven by 35 profit drops post-2020, the government aims to help" harrowing" internal health fallout through enforceable translucency on contract changes and exit terms, with Vodafone facing administrative scrutiny in 2026.