In August 2026 the government confirmed that it has commissioned two reviews into the UK franchising sector, as it considers whether new law is needed to protect franchisees. It is the most significant step towards franchise regulation the UK has seen.
For franchisees, it is a long-awaited signal that the imbalance of power in many franchise relationships is being taken seriously. It is not yet a change in the law. This article explains what the reviews are, how the issue reached the top of the political agenda, and what reform could mean in practice.
The two reviews
According to reports, the Department for Business and Trade is working with the British Franchise Association on a study of the UK franchise market and how it is currently regulated. Separately, the Centre for Economic Policy Research is examining how franchising is regulated in other countries.
The government has said the aim is to "ensure franchisees are properly protected, while avoiding unnecessary burdens on small businesses". Lord Leong, the minister for small business and enterprise, has been given responsibility for franchising policy. No timetable for the reviews or for any legislation has been published.
Why franchising is under scrutiny
The UK has no franchise-specific law. A franchise relationship is governed by the franchise agreement and by general contract, competition and intellectual property law. Alongside that sits voluntary self-regulation, mainly the British Franchise Association's code of ethics, which only applies to its members.
Critics argue that this leaves franchisees, often individuals who have invested their savings and given personal guarantees, treated in law as equals of large corporations, despite the very different bargaining power on each side. There is no regulator with oversight of franchisor behaviour and no statutory dispute resolution scheme.
How the issue reached Parliament
Mr Howe's family has campaigned for change in his name. Vodafone has said it rejects any suggestion that its franchisees were put under undue pressure. If you are struggling, Samaritans are available free, day or night, on 116 123.
- 2 July 2025: Sir John Hayes MP led a Commons adjournment debate titled "Corporate Businesses and Franchisees: Regulatory Environment", after meeting a constituent who had been a Vodafone franchisee. He told MPs that "franchising can be used as a method to exaggerate the power of the business at the heart of the franchise". The government said it would monitor the outcome of the Vodafone litigation closely.
- December 2025: a Guardian investigation reported allegations from former Vodafone franchisees and the family of a former Vodafone store manager, Adrian Howe.
- 7 January 2026: at Prime Minister's Questions, Johanna Baxter MP raised Mr Howe's case. The Prime Minister said he could not comment on a live legal case, but that the government would "look closely" at whether more could be done to protect franchisees.
- 2026: the House of Commons Business and Trade Committee, chaired by Liam Byrne MP, said in its Small Business Strategy report that the current system "is no longer sustainable". It recommended a review of the franchising landscape, consideration of a statutory code of conduct, and stronger, independent enforcement.
- July 2026: Vodafone settled the High Court claim brought by 62 former franchisees, without admitting liability.
- August 2026: the government confirmed the two reviews.
Our part in the campaign
We have lobbied the Government hard for franchise legislation of the kind many European countries already have. As of June 2026, MPs have told us this is now being investigated and worked on. The commissioning of these reviews is a welcome step, and we will continue to press for protections that work in practice for franchisees.
We are independent of any fee-paying franchise association or membership, and we act for franchisees only.
What reform could look like
Nothing has been decided. But commentators, and the experience of other countries, point to a number of possible measures:
- Pre-contract disclosure: a legal duty on franchisors to give prospective franchisees key information, such as financial history, fees, litigation and the experience of existing franchisees, a set period before signing.
- A statutory code of conduct: minimum standards of behaviour, including a duty to act fairly and in good faith, enforceable in law rather than only through a voluntary association.
- Limits on one-sided changes: rules on when and how a franchisor can change payments, charges or the operations manual during the life of the agreement.
- Accessible dispute resolution: an independent, affordable route to resolve disputes without the cost of High Court litigation.
- Independent enforcement: a body with power to investigate and act on breaches, as the Business and Trade Committee suggested.
Why it matters beyond one company
Although the Vodafone case triggered the debate, the issues are not confined to one company or one sector. Complaints about one-sided changes to payments, unexpected charges, limited support and the cost of resolving disputes come up across franchising, from food and retail to services and property. Most franchisors run sound networks and want their franchisees to succeed. The question the reviews must answer is what protection franchisees should have when that is not the case, and how to provide it without making franchising unworkable for the many small franchisors who are themselves growing businesses.
Prospective franchisees also have a stake. Clear information before signing, and a fair way to resolve problems afterwards, would make franchising a safer route into running a business, which benefits good franchisors as much as franchisees.
What it means for franchisees now
Reviews take time, and legislation takes longer. Any new law is unlikely to apply to disputes that are already under way, and it may only apply to agreements signed after it comes into force. If you have a problem with your franchisor today, your position will be decided by your current agreement and the law as it stands.
That makes the basics more important, not less:
- Know your agreement: payments, the franchisor's right to make changes, renewal, termination and restrictions after you leave.
- Keep a written record of every change, every penalty and every important conversation.
- Raise concerns in writing, calmly and on the facts.
- Do not stop paying or trading without advice, as that can put you in breach.
- Get an honest view of your position early, before costs build up.
We will keep you informed
We will report on the reviews and on any proposals for legislation as they are published. In the meantime, if you are in dispute with your franchisor, call or email in confidence. Initial discussions are free.