UK PM Vows to Review Franchise Legislation Amid Pressure from Vodafone Case
Prime Minister Keir Starmer has promised to review franchise legislation following a high-profile case involving Adrian Howe, a former Vodafone store manager who took his own life under pressure from the telecoms giant. The decision comes after a Guardian investigation revealed that commission cuts by Vodafone in 2020 led to significant financial difficulties for multiple franchisees, resulting in attempts on their lives.
Howe's family claims he was initially offered a lucrative franchise deal but was later pressured into taking on a struggling store, which ultimately contributed to his tragic death. Starmer acknowledged the "harrowing stories" and said that while there are existing rules in place, the government will examine the outcome of the case to determine if additional measures can be taken to prevent such situations in the future.
The move follows a statement from Vodafone dismissing allegations that Howe was forced into taking on a poorly performing store. The company maintains it has tried to resolve the dispute with 62 former franchisees who brought a high court claim, alleging "unjust enrichment" of the telecoms group.
The controversy highlights concerns over the balance of power between companies and franchisees in franchise agreements. Starmer's commitment to review legislation comes after the government considered introducing new laws last month to address potential issues. The case has sparked calls for greater accountability and regulation within the franchising industry, with many questioning how such pressure could be placed on individuals entering into lucrative contracts.
Prime Minister Keir Starmer has promised to review franchise legislation following a high-profile case involving Adrian Howe, a former Vodafone store manager who took his own life under pressure from the telecoms giant. The decision comes after a Guardian investigation revealed that commission cuts by Vodafone in 2020 led to significant financial difficulties for multiple franchisees, resulting in attempts on their lives.
Howe's family claims he was initially offered a lucrative franchise deal but was later pressured into taking on a struggling store, which ultimately contributed to his tragic death. Starmer acknowledged the "harrowing stories" and said that while there are existing rules in place, the government will examine the outcome of the case to determine if additional measures can be taken to prevent such situations in the future.
The move follows a statement from Vodafone dismissing allegations that Howe was forced into taking on a poorly performing store. The company maintains it has tried to resolve the dispute with 62 former franchisees who brought a high court claim, alleging "unjust enrichment" of the telecoms group.
The controversy highlights concerns over the balance of power between companies and franchisees in franchise agreements. Starmer's commitment to review legislation comes after the government considered introducing new laws last month to address potential issues. The case has sparked calls for greater accountability and regulation within the franchising industry, with many questioning how such pressure could be placed on individuals entering into lucrative contracts.