Vodafone terminates contracts of 12 franchisees who joined £120m lawsuit
Vodafone has terminated the contracts of 12 franchisees who have continued running the brand’s high street stores while also being part of a £120m high court claim against the telecoms group,The legal case was launched in December, when 62 franchisees claimed Vodafone had “unjustly enriched” itself at the expense of scores of vulnerable small business owners by slashing commissions to franchisees operating the mobile phone company’s retail outlets,A dozen of the claimants had remained in the franchise programme even though they had joined 50 former colleagues in pursuing the legal case,Some of the 62 said they had had suicidal thoughts because of the pressure exerted by the telecoms group – while many claimed the company’s actions made them fear they would lose their livelihoods, homes or life savings after running up personal debts of more than £100,000,Vodafone, which says the legal claim is worth £85.
5m, has consistently argued the case is “a complex commercial dispute between Vodafone UK and some franchise partners and we refute the claims”.Responding to news that the 12 current franchisees are having their contracts terminated, a Vodafone spokesperson said: “We are focused on building a successful and thriving franchise programme.As a result, we have a clear duty to do everything we can to support those franchise partners who are committed to our joint success.“The dispute has been ongoing for over two years and a number of the claimants have remained within the franchise programme and had their contracts renewed during that time.However, we are increasingly concerned about the impact negative campaigning is having on our franchise programme.
”The spokesman added: “After careful consideration, and with disappointment, we therefore decided it was no longer viable for us to work with franchise partners who are supporting the negative campaign against the business.”A franchise is a type of licence that allows a company to sell a product or service under another business’s brand name, in return for paying certain costs such as rent and wages.As part of their deals, Vodafone franchisees were paid commissions based on the handset and airtime revenues they generated from customers visiting their stores.The court papers allege that the FTSE 100 company acted in “bad faith” by unilaterally cutting fees to its franchisees; imposing swingeing fines on them totalling thousands of pounds for seemingly minor administrative errors; and then pressuring them into taking out loans and government grants to keep their businesses afloat.Vodafone said it strongly refutes that the company “unjustly enriched” itself and said it had conducted a number of investigations into the allegations, which resulted in the company making “a number of improvements to our franchise partner programme”.
The group’s investigations “concluded that some actions between Vodafone and franchise partners had not always adhered to the standards we expect, however no evidence of misconduct was found”.The mobile operator has added that it had paid back almost £5m to franchisees including the “retrospective reimbursement of fines and clawbacks”.It has since emerged that, two years before the high court claim was launched, whistleblowers had warned a series of senior Vodafone executives that scores of its franchised store owners faced financial ruin.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionMeanwhile, talks to settle the dispute ended without resolution last month – leaving the case potentially heading for the high court.Vodafone announced earlier this month that it had sealed a £16.
5bn deal to combine its British arm with its rival Three UK.The merger, first proposed in 2023, creates the UK’s largest mobile operator with a network of more than 27 million subscribers.On Thursday, the new VodafoneThree joint venture said it planned to close some of its almost 650 stores on high streets and in shopping centres where the two former brands had outlets in close proximity.The Vodafone chief executive, Margherita Della Valle, has previously said: “The commercial dispute is specifically between Vodafone UK and some of our franchisees.Our first joint attempt at mediation has not resolved the dispute despite our best engagement.
We remain open to further discussions as the process continues.”
Redemption for ‘chilled’ Russell at Canadian F1 GP as Norris gets it all wrong
George Russell scored the first Grand Prix win of 2025 for both himself and Mercedes with a fine drive to win the Canadian GP.The catalyst was a superb sixth career pole position which Russell described as “probably the most exhilarating lap I’ve ever done in my life because around this circuit you’ve got to be so committed.”The 27-year-old overcame the threat of four-time world champion, Max Verstappen, after the pair collided twice at the previous race in Spain, after which Verstappen received three penalty points on his licence, taking him to within a single penalty point of a one-race ban.After beating Verstappen to pole in Montreal, Russell joked that he had a bit more leeway to get his elbows out at the start. After a better getaway, he didn’t need to, and fears that higher race-day temperatures might hamper the Mercedes tyre wear, proved unfounded
Leigh solidify top-four spot after Ofahengaue’s late try sees off Wakefield
Leigh Leopards won this pulsating contest to solidify their position inside the top four and underline why they are a fraction ahead of Wakefield Trinity right now in Super League.It felt like an afternoon for these two sides to showcase their Old Trafford credentials at the season’s end, and both played their part in a thoroughly entertaining game which see-sawed until the final moments.Leigh are now a bona fide top-six side and they look increasingly likely to be in the playoffs come the end of the summer. Here, they had to do it tough, trailing until the final three minutes before Joe Ofahengaue’s late try helped to secure a precious win.“It’s a difficult place to come up to and win,” their coach, Adrian Lam, said
‘A special moment’: Russell revels in Bath glory as focus turns to Lions
Had Handrè Pollard done his homework he might have known what was coming – for Finn Russell has previous with intercepts when attacking Twickenham’s south stand. It was playing that way that he picked off Owen Farrell’s pass before streaking clear in the madcap 38-38 draw between England and Scotland in 2019. And he was at it again on Saturday, coming up with the decisive moment in Bath’s dogged Premiership final victory over Leicester.On this occasion he did not finish off the try himself – you suspect he probably could have – instead flinging a nonchalant pass inside to the onrushing Max Ojomoh. In a final short on champagne moments, it put the fizz in Bath’s performance, extending their lead to 20-7 before a second penalty of the match proved pivotal in ensuring the 29-year wait for a Premiership title was over
Rory McIlroy’s indifference is understandable after achieving his dream | Ewan Murray
A snapshot of Rory McIlroy’s new normal arrived the day before the US PGA Championship began. McIlroy’s practice round at Quail Hollow was watched by more than 50, inside the ropes. Journalists, content creators, wannabe content creators … everyone wanted not just a glimpse – you can get that from the bleachers – but a piece of golf’s latest grand slam man. McIlroy played a hole while being interviewed for the tournament’s main preview show. All soft, knock‑around stuff but inevitably a distraction
Robert Kubica seals emotional Le Mans 24 Hours victory for Ferrari
Poland’s Robert Kubica sealed a deserved place in motor racing history as he took victory – alongside China’s Ye Yifei and Britain’s Philip Hanson – at the Le Mans 24 Hours. Hard fought with a relentless determination that has matched his refusal to be cowed after a life-threatening accident, his victory also secured an impressive third consecutive win for Ferrari at the 93rd edition of the vingt-quatre.The victory after 387 laps for the No 83 privateer Ferrari 499P, run by the Scuderia’s works partner AF Corse, was the first overall win at Le Mans for drivers from Poland and China and will make Ye a household name in his home country, while for the 25-year-old Hanson it is a career high in only his second run in the top, hypercar, category.However, it was surely of greatest import to Kubica for whom it was an understandably emotional moment. The victory was a triumph for a driver who has fought tirelessly to continue his career after he was seriously injured in a crash at the Andora Rally in 2011, leading to the partial amputation of his forearm
Buoyant Carlos Alcaraz to continue with his mid-season party breaks
Carlos Alcaraz says he plans to carry on with his annual post-French Open trips after unwinding from his historic five-set triumph over Jannik Sinner in Paris last weekend with three days of partying in Ibiza.“Probably,” the Spaniard said on Sunday as he was preparing for Queen’s Club, which starts on Monday. “It’s kind of the middle of the season. It’s really, really intense, the clay season. So soon after Roland Garros is the best moment to go anywhere
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