Is UK franchising law about to change? Key takeaways for businesses

The UK government may soon take a closer look at the legislative framework governing franchising relationships, an area that, unlike many other jurisdictions, currently operates without a dedicated statutory framework, relying instead on contract law principles and voluntary codes. The result is a pronounced power imbalance between franchisors and individual operators.

The renewed political focus follows extensive media coverage and parliamentary scrutiny of the Vodafone franchise model, alongside the tragic and widely reported case of Adrian Howe, a long‑serving Vodafone store manager who had agreed, in 2018, to become a franchisee and later died in distressing circumstances. Recent discussions in Parliament have highlighted allegations from former Vodafone franchisees who claim that shifts in commercial terms created significant financial strain. A High Court claim brought by dozens of former operators is ongoing and, although Vodafone disputes the allegations, ministers have indicated that legislative options, including statutory codes of practice and/or strengthened dispute‑resolution mechanisms, may be on the table.

How could the law change?

For now, franchising in the UK continues to rely on contract law and voluntary industry codes. However, if the government proceeds with reforms, we could see new requirements emerge around disclosure, fair‑dealing standards and more accessible arbitration routes.

In the meantime, existing businesses should prepare for potential shifts in the regulatory environment by:

• Reviewing existing franchise agreements for areas where statutory standards (if introduced) may override existing terms.
• Examining onboarding and disclosure processes - even modest reforms may include more robust requirements in these areas.
• Considering whether internal compliance and governance processes are robust enough for increased regulatory scrutiny.
• Monitoring legal and regulatory developments closely - change may come faster than expected.

This is a pivotal moment for franchisors and franchisees alike. The debate is no longer whether reform is possible, but how far it might go - and how the sector can prepare for a shifting legal landscape.

If you would like to discuss how these potential reforms may affect your business, please contact us.