Vodafone was warned by its franchisees four years ago that the committee’s cuts had “a huge impact” on its mental health, long before dozens of small business owners filed a £120 million high court case against the company.
In a 2020 survey conducted by Vodafone in which it sells its products and services, participants reported on the expense of suffering from stress, anxiety, and depression. After the cuts, months of uncertainty arising from the COVID-19 pandemic.
Of the 5 points, franchisees only scored 1.75 points in 5 points because they trust Vodafone’s words, and in 5 points, they think they are considered to be valued by business partners. Many say these changes have left them worried about losing their livelihoods, homes and savings.
“My mental health has become very poor due to my anxiety and depression,” one interviewee wrote. Another added: “I got sick from stress and it affected my family life.”
In December, 62 franchisees (nearly 40% of Vodafone’s total franchise network) launched a high court claim that the company “unfairly affluent” itself by cutting commissions. The claim requires compensation of up to £120 million.
Since then, some franchisees say the pressure they face has triggered suicidal thoughts. Members of Congress compared various aspects of the dispute with the Post Office Vision IT scandal, highlighting the scale of alleged abuse of small business owners.
Vodafone said it regrets any franchisee who has experienced the hardship. A spokesperson added: “At Vodafone, we encourage anyone to ask questions in the knowledge taken seriously and we always seek to resolve any issues raised. We continue to run successful franchise operations, and many of our existing franchisees expand their business by purchasing other stores.”
The telecom company has conducted a fourth investigation into historical conduct within its franchise sector. It also said it “strongly dismissed” allegations in the High Court claim, saying the case was a commercial dispute it intended to defend.
