The claim from 61 franchisees accuses Vodafone of making irrational business decisions, causing severe financial and personal hardship for franchisees.
The group alleges Vodafone imposed drastic commission cuts, failed to pass on government relief benefits, and unfairly retained rent-free periods during the pandemic.
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These actions, they say, left many franchisees in financial distress and unable to sustain their businesses.
Some stores were allegedly taken away without sufficient notice, compounding the struggles faced by franchisees.
Andrew Kerr, a former franchisee from Northern Ireland, described losing his three stores in 2023 after Vodafone’s decisions reportedly wiped out a third of his revenue with just two weeks' notice.
Donna Watton, another former franchisee, alleges that Vodafone’s changes turned her only profitable store into a loss-making one overnight. Watton says she has been left with debts of £100,000.
Rikki Lear, a former Kent-based franchisee, echoed these sentiments, saying the programme left him “almost broken” and reliant on the support of the group to fight for justice.
The claim alleges Vodafone marketed its franchise model as a partnership with uncapped earning potential but instead implemented commission structures that made some stores unviable.
Franchisees claim Vodafone benefited from government business relief schemes intended for them and imposed excessive fines that disproportionately harmed their businesses.
Vodafone denies the allegations and is expected to contest the claim in court. The franchisees hope the case will bring accountability and highlight the challenges they endured under the franchise programme.
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