'Vodafone sold us a dream - the reality was something different'
Summary
Two former Vodafone franchise owners in Lincolnshire are part of a group suing Vodafone, claiming the company made unfair business changes that caused financial and mental health problems. Vodafone says it has improved the franchise system and tried to settle the dispute, but the franchisees rejected the offer.Key Facts
- Donna Watton and Rachael Beddow Davison ran Vodafone franchise phone shops and say they were left in debt and stressed.
- They are among 62 former franchisees suing Vodafone over business decisions they call “irrational” and unfair.
- Vodafone has over 350 franchise stores in the UK.
- In 2020, Vodafone cut commissions on phone upgrades by about 40% and introduced fines and penalties.
- Beddow Davison was fined over £3,260 in one case for a staff member’s behavior with a customer.
- Vodafone encouraged the franchisees to take over new stores with no customers, promising a possible £40,000 earnings goal that was not guaranteed.
- Watton’s contract to run a profitable store was not renewed.
- Problems with footfall (customer counting) devices made Vodafone overestimate store revenue; Vodafone says it investigated these issues through a third party.
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