"The Fairer Franchise campaign group represents 62 current and former Vodafone franchisees, who are bringing an £85 million ($115 million) High Court claim, alleging the telco unilaterally cut commissions and overhauled the way it compensated them for operating Vodafone-branded stores, often without consultation."
"Vodafone is alleged to have repeatedly and unilaterally cut the commissions paid to franchisees for sales of its products and services, particularly from July 2020 onward. The group also claims Vodafone changed remuneration models without consultation or proper consideration of the impact this would have on the franchised businesses."
"In particular, the claimants allege Vodafone unlawfully clipped remuneration from August 1, 2020, by reducing the commission rates on customer and home broadband upgrade transactions, and that it restructured the calculation of commission to franchisees in a manner beneficial to itself, as part of the rollout of a scheme called "EVO" in June 2021."
"At the heart of the case is the group's claim that the franchisees were effectively "commercial agents" of Vodafone - within the meaning of the Commercial Agents Regulations - because they sold products and contracts on Vodafone's behalf. Vodafone denies this and says the regulations do not apply."
A group of current and former Vodafone franchisees brings an £85 million High Court claim alleging Vodafone imposed business decisions that harmed their franchised stores. The Fairer Franchise campaign represents 62 franchisees and says Vodafone encouraged heavy investment after launching a franchise program in mid-2017, expanding to about 400 branches. The claimants allege Vodafone repeatedly and unilaterally reduced commissions, especially from July 2020 onward, and changed remuneration models without consultation. They allege unlawful commission clipping from August 1, 2020 through reduced commission rates for customer and home broadband upgrades. They also allege Vodafone restructured commission calculations in its EVO scheme rollout in June 2021. The case centers on whether franchisees functioned as commercial agents under the Commercial Agents Regulations, which Vodafone denies.
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