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Vodafone settles high court dispute with 62 former franchisees

The settlement ends a 19-month case alleging Vodafone cut franchise commissions unilaterally and left former shop owners with debts.

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Vodafone has settled a high court legal claim brought by 62 former franchisees, ending a 19-month dispute without admitting liability, according to the Guardian Business.

The London-listed company, valued at about £25 billion, faced allegations that it unjustly enriched itself at franchisees' expense by up to £85 million, after the franchise partners said they accumulated large personal debts linked to their deals with Vodafone.

The former shopkeepers claimed Vodafone unilaterally slashed the sales commissions paid for running its high street stores, and they also alleged Vodafone imposed fines for administrative errors, then encouraged franchisees to rely on loans and government grants to keep their businesses running.

In a joint statement, both sides said the commercial dispute over the interpretation of franchise agreements is now concluded, the settlement is a compromise with no admission of liability, and the terms will remain confidential.

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