Prime Minister Keir Starmer has pledged to examine the laws governing franchising agreements in the UK, following a high-profile legal case against telecoms giant Vodafone and the tragic death of a former store manager.
A Promise in Parliament
During Prime Minister's Questions on Wednesday, Starmer was directly questioned by Labour MP Johanna Baxter about the case of Adrian Howe. Baxter explained that Howe, a successful Vodafone manager for over two decades, had agreed to become a franchisee in 2018.
The MP stated that the terms of the deal changed, alleging Howe was then compelled to take on a struggling store. Just days before the store was due to open, Adrian Howe drowned. His family believe he became convinced the franchise agreement would lead to financial ruin.
The Wider Legal Claim and Guardian Investigation
Starmer's commitment follows a Guardian investigation in December, which highlighted not only Howe's case but also the stories of other former Vodafone franchisees. Rachael Beddow-Davison and Dan Attwal told the newspaper that commission cuts imposed by Vodafone in 2020 led their franchising companies into significant debt.
Both individuals said this financial pressure contributed to them attempting to take their own lives. Beddoow-Davison and Attwal are part of a group of 62 former franchisees who launched a High Court claim against Vodafone in 2024.
They allege the FTSE 100 company "unjustly enriched" itself, in a case some MPs have compared to the Post Office Horizon IT scandal. The Prime Minister noted he could not comment on the live legal case but assured the Commons: "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."
Government Action and Vodafone's Response
The government indicated last month it may consider new laws to address the power imbalance in franchise agreements, citing "harrowing stories" from small business people running Vodafone stores. Starmer's promise reinforces this potential legislative shift.
Vodafone has strongly contested the claims. A company 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 spokesperson added that Vodafone runs a successful franchise business with over 350 stores and that the majority of franchisees have expanded their operations. They also stated that Adrian Howe was not a franchise partner at the time of his death and that the company has tried to resolve the "complex commercial dispute" with the 62 claimants, remaining open to further talks.
The Howe family is not part of the ongoing legal action, which Vodafone continues to contest.
