UK launches dual reviews of franchising practices after Vodafone controversy
The government has ordered two detailed studies on franchise regulation following allegations involving Vodafone and the death of a prospective franchisee.
In response to high-profile claims about Vodafone’s franchise operations, UK ministers have commissioned two comprehensive reviews of the sector. The Department for Business and Trade is collaborating with the British Franchise Association to assess the UK market, while also engaging the Centre for Economic Policy Research to compare overseas franchising models. The initiative follows one outlet's report that highlighted the suicide of Adrian Howe, a former Vodafone employee who was set to open a franchise in 2018, and testimonies from other ex-franchisees about financial strain.
Lord Leong, newly responsible for small business and enterprise, will oversee the portfolio. The government aims to use the studies to shape legislation that safeguards franchisees without imposing excessive regulation on small firms.
Why it matters
The reviews could lead to new rules that protect small franchise owners from undue corporate pressure.
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