The prime minister has promised to review laws governing franchising agreements, in response to the case of a former Vodafone store manager whose family alleges took his own life following pressure from the FTSE 100 telecoms group.
Keir Starmer said in the Commons on Wednesday that he would “look closely” at the outcome of a high-profile legal claim against Vodafone.
The comments follow a Guardian investigation in December, which revealed claims that Adrian Howe, a former Vodafone employee who had agreed to become a franchisee in 2018, drowned after becoming convinced his deal with the multinational company would prove financially disastrous.
Rachael Beddow-Davison and Dan Attwal also told the Guardian about how commission cuts by Vodafone in 2020 caused their franchising companies to run up huge debts, which they each said contributed to them attempting to kill themselves.
Beddow-Davison and Attwal are two of a group of 62 former Vodafone franchisees who brought a high court claim in 2024, alleging the telecoms company “unjustly enriched” itself and which MPs have compared to the Post Office Horizon IT scandal.
During prime minister’s questions on Wednesday, MP Johanna Baxter 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?”
Starmer replied: “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 Howe family are not part of the ongoing legal claim, which Vodafone is contesting.
The commitment by the prime minister to examine franchising legislation comes after the government said last month that it may consider new laws to correct the power imbalance in franchise agreements in response to the “harrowing stories” of small business people running 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 company added that it has tried to resolve the “complex commercial dispute” with the 62 claimants and remains open to further talks.
