Vodafone’s £120M Franchise Fallout: What It Means For Your Business

In July 2025 , more than 60 Vodafone Franchises launched a £120 million High Court claim against the telecoms giant.

At the centre of the dispute are allegations of sudden changes to commission structures which franchises say left them in serious debt and financial distress.

The UK government is closely monitoring the case; this could be a sign that the outcome could set new precents for franchise law and commercial contract management.

What are the Franchises Claiming?

Some of the claims against Vodafone include:

• Breach of contract
• Misrepresentation
• Unjust enrichment
• Economic duress
• Mental distress from financial pressure

The franchises claim that they were unfairly pushed into operating at a loss, whilst Vodafone financially benefited. The company denies such wrongdoings and are defending the claim.

Why does this matter to your business?

Whilst this may seem like a telecoms sector issue there are deeper legal implications that extend to any business operating under a franchise, supply or commercial partnership agreement. The case highlights several key risks for businesses:

• The dangers of unclear or unfair contractual terms
• The consequences of one-sided mid-contract changes
• The importance of recourse when financial imbalance arises.

Do you use or operate a franchise model?

Whether you are a franchisee or franchisor this case is a timely reminder to:

• Review your agreements for any risk clauses or vague and ambiguous language
• Ensure performance obligations and that payment obligations are clear
• Seek legal advice when business conditions change or become unattainable
• Address disputes early.

Even outside franchising, many supplier-distributor or other commercial relationships carry similar risks.

How can our Commercial Litigation Team help?

At Wilson Browne Solicitors we advise our clients across sectors on protecting their business interests before, during and after a dispute. We can:

• Conduct a contract check
• Identify early warning signs of commercial risk
• Guide you through negotiation, mediation or litigation
• Identify options and potential solutions

Worried about your commercial contract? Contact our New Enquiries Team on 0800 088 6004, who can discuss your issue with you and set up a free initial conversation with the appropriate person.