Franchisees warned Vodafone of impact of commission cuts

Vodafone franchisees warned the telecoms group of the “massive impact” commission cuts were having on their mental health four years before a group of 62 launched a £120m high court claim against the company, it has emerged.

- Simon Goodley

Franchisees said they felt stressed and had suffered from anxiety as a result of the decision to cut fees, in research that also indicated they had little trust in Vodafone's word.

The group of high court claimants - who represent almost 40% of Vodafone franchisees - launched a legal case in December alleging Vodafone “unjustly enriched” itself at the expense of scores of vulnerable small business owners by slashing commissions to franchisees running the company’s stores.

Details of the seemingly widespread dissatisfaction are recorded in a survey of franchisees conducted during 2020, weeks after the mobile phone group cut fees paid to the small retailers for selling some of its products and services. The reduction in fees followed six months of uncertainty due to the effects on trading of the Covid pandemic.