Vodafone executives face MPs over claims of Cornwall franchise owners left in financial ruin
Vodaphone says it remains open to further talks with former franchise owners.
Last updated 21st Jan 2026
Senior executives from telecoms company Vodafone are set to meet with MPs today (21st January), following allegations that dozens of their former franchise owners, including a couple from Cornwall, faced financial ruin and severe mental distress.
Some ex-franchisees have said their experiences led to suicidal crises, prompting comparisons to the Post Office Horizon scandal.
Vodaphone "strongly refutes" this comparison and says any link between the two is "wholly disproportionate and unjustifiable".
The scandal centres on claims that Vodafone abruptly changed commission structures while aggressively recruiting struggling retail outlets, leaving franchisees trapped in unsustainable business ventures.
At least 62 franchise owners are pursuing legal action against the company, alleging “unjust enrichment.”
Among the affected franchisees are Rebecca and Lee Beer from Ponsanooth had a combined 40+ years of retail experience when Lee joined Vodafone as a Partner Agent and later opened two stores in Truro and St Austell.
Speaking about their experience, Rebecca Beer said:
“They sold you a very fake dream about all the amazing things of being your own boss and having good work-life balance and about being this fantastic company that cared about women in business.
"We just want them to stop selling dreams, stop lying. and take responsibility for what they've done."
The couple claim Vodafone initially promised significant support but later withdrew it, leaving them in an impossible financial position.
Commission rates were cut by up to 44%, and targets they described as “unachievable” were imposed.
Instead of finding relief, they say they were pressured to open additional stores, further compounding their financial difficulties.
In August, Lee suffered a breakdown and expressed suicidal thoughts after facing what Becky described as extreme distress caused by an investigation conducted by the company, even though no action was ultimately taken.
Six months after having left Vodafone, Lee was also diagnosed with leukaemia and began chemotherapy, adding further strain on the family.
"On top of that, with having the four children, I have to work 80 hours plus a week, which I want to be there for my husband in the hospital or at home with my children, supporting them through the worst time ever.
"But I can't because we're in so much financial ruin that if I don't, we'll lose the house.
"My family took money off their own houses to to help us. So, it's unbearable."
Concerns have already been raised in Parliament about the human impact of these alleged business practices and Labour MP Johanna Baxter, who represents a former franchisee, highlighted the issue during Prime Minister’s Questions this month.
Compensation claims are estimated between £78 million and £85 million.
The allegations against Vodafone continue to stir discussions about the wider treatment of franchisees, with calls for urgent action to protect small business operators.
Vodaphone has told us it values the mental health and wellbeing of it's people and has demonstrated a strong commitment to supporting franchisees during periods of ill health and is deeply saddened to learn that some former franchisees experienced mental health challenges.
A Vodafone spokesperson said:
“This is a complex commercial dispute and while we fully reject the claims against us, we are sorry if any franchisee had difficulty operating their business.
"We have repeatedly tried to resolve this matter and offered what we feel is a significant payment. Our offer was rejected by the lawyers for the company funding the claim.
"We remain open to further talks.”