UK Franchise Law: Vodafone Case and Potential Changes

In light of the ongoing high court claim against FTSE 100 telecoms company Vodafone, Labour leader Sir Keir Starmer has vowed to review the need for formal UK franchise-specific legislation.  

This follows allegations that Vodafone “unjustly enriched” itself at the expense of franchisees, which ultimately culminated in serious personal and financial impacts for those involved.  

While the case is ongoing, it has raised serious questions about whether a mandatory level of accountability and oversight is needed within franchising, as well as bringing renewed scrutiny to the way franchise systems are governed and supported in the UK. 

The UK currently has no franchise-specific legislation or single government body in charge of regulating franchises. One self-regulatory body is the British Franchise Association (BFA), whose members must adhere to the BFA code of ethics which promote transparency, fair dealing, and best practice; however, membership to this association is not required by law.  

EKW Group is a proud member of the BFA and works exclusively with franchise businesses, supporting both franchisors and franchisees. 

There have been mixed reactions to the news, with some saying that regulations around franchising need to be tightened due to this tragic case, while others argue that additional, potentially rushed legislation will only serve to hurt those involved in franchises. Any future changes would need to carefully balance protection with the flexibility that underpins successful franchise models. 

As specialist franchise accountants in the North West, and part of the wider ETL GLOBAL group, EKW Group also has access to integrated legal support, enabling us to advise clients on both the financial and legal implications of operating within a franchise system, particularly during times of regulatory uncertainty.