"Vodafone was warned by its franchisees four years ago that commission cuts were having a "massive impact" on their mental health, long before dozens of small business owners launched a £120 million High Court case against the company. In a 2020 survey conducted weeks after Vodafone reduced fees paid to franchisees for selling its products and services, participants reported suffering stress, anxiety and depression. The cut followed months of uncertainty caused by the Covid pandemic."
"Franchisees scored the company just 1.75 out of 5 on whether they trusted Vodafone's word, and 1.67 out of 5 on whether they felt valued as business partners. Many said the changes had left them fearful of losing their livelihoods, homes and savings. One respondent wrote: "My mental health has become very poor as I am suffering from anxiety and spells of depression." Another added: "I am ill from stress and it has affected my home life.""
In 2020 Vodafone reduced fees paid to franchisees, following months of Covid-related uncertainty. A survey conducted weeks after the cuts recorded reports of stress, anxiety and depression among franchisees. Franchisees rated trust and feeling valued very low, citing fear of losing livelihoods, homes and savings. Individual responses described severe mental health decline and stress affecting home life, with some later saying the pressure triggered suicidal thoughts. In December, 62 franchisees representing nearly 40% of the network launched a High Court claim seeking up to £120m in damages. Vodafone expressed regret and launched a fourth investigation into historical franchising conduct.
Read at Business Matters
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