Vodafone settles legal claim brought by 62 former franchisees
Vodafone has reached a confidential settlement with 62 former franchisees who accused the company of unjust enrichment and bad faith practices. The dispute, which lasted 19 months, centered on unilateral cuts to sales commissions that caused significant financial hardship for small-business owners.
Why it matters
The case highlights the power imbalance between large corporations and small-business franchisees, drawing comparisons to major corporate scandals.
Vodafone is a London-listed company valued at about £25bn./Getty Images Vodafone is a London-listed company valued at about £25bn./Getty Images Vodafone Vodafone settles legal claim brought by 62 former franchisees Agreement, without admission of liability, ends 19-month high court dispute that small-business owners said left them with large debts
Prefer the Guardian on Google Vodafone has settled a long-running legal claim filed by 62 of its former franchisees who alleged the mobile phone group “unjustly enriched” itself at their expense by up to £85m.
The small-business owners – some of whom said they had suffered suicidal thoughts because of the pressure exerted by the telecoms group – launched the high court claim in 2024 after running up large personal debts they said had been caused by their deals with the company.
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