Vodafone Group PLC's (LSE:VOD) half‑year results prompted a renewed challenge from a group of 62 former franchisees pursuing a multi‑million‑pound High Court claim against the company.
The group questioned why the claim, estimated at close to £90 million in potential damages and legal costs, is not disclosed as a contingent liability within the company’s latest financial statements.
The franchisees raised questions about the absence of any reference to previously reported £4.9 million of goodwill payments, and whether Vodafone has set aside funds to cover potential compensation.
Mediation has not resulted in a settlement and the case is moving forward to the High Court, the group said.
The group said: “Today’s announcement by Vodafone should not distract from the serious behavioural and governance issues that we allege lie at the heart of the company – issues that demand full, independent investigation and accountability at the highest level.”
They alleged long‑standing issues within Vodafone’s franchise programme, including reduced commissions, withheld support, unplanned store closures and fines. They said senior management was aware of concerns raised by whistleblowers and through internal surveys.
The franchisees said ongoing reviews of the division have not resolved what they view as systemic governance failings.
The spokesperson added concerns about confidential goodwill payments and the absence of disclosure around potential liabilities in the latest results. They said Vodafone’s leadership should be subject to independent scrutiny.
Vodafone said: "This is a commercial dispute between Vodafone UK and some franchise partners and we refute the claims. We remain open to continue the dialogue to try and resolve the matter.
"The majority of our franchise partners operate successful operations and have been keen to take on more stores and expand their business with us."