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Vodafone CEO challenged by ex-franchisees at AGM over landmark legal dispute

July 29, 2025
in Investing
Vodafone CEO challenged by ex-franchisees at AGM over landmark legal dispute

Vodafone’s Annual General Meeting was disrupted today by a group of former franchisees demanding accountability over a £120 million legal claim against the company, as tensions over the long-running dispute escalated in public.

The franchisees, who allege they were driven to financial ruin, homelessness, and in some cases suicidal despair, confronted Vodafone CEO Margherita Della Valle and Chairman Jean-François van Boxmeer, demanding answers and accusing the telecoms giant of continuing to ignore their plight.

One former franchisee, Donna Watton, 42, from Boston in Lincolnshire, directly challenged Della Valle during the AGM, asking: “How do you sleep at night knowing that Vodafone’s actions have left franchisees suicidal, losing their homes and drowning in debt?”

Chairman van Boxmeer responded on behalf of the company, reiterating Vodafone’s position that the case remains a commercial dispute. Della Valle did not respond directly to the challenge. Despite repeated assurances from Vodafone leadership that the company is open to dialogue, franchisees say no meaningful talks have taken place.

The confrontation marks a dramatic new chapter in the ongoing legal battle, which is set to proceed to full trial. The claim, brought by 62 former franchisees, alleges that Vodafone imposed sudden and arbitrary contract changes, as well as disproportionate fines and clawbacks, that left many of the business owners insolvent and destitute.

Franchisees argue the issue goes far beyond a commercial disagreement, describing it as a matter of corporate accountability, ruined lives, and a failure of governance. Their campaign has drawn political attention, with MPs recently debating the issue in Parliament. Enterprise Minister Gareth Thomas has confirmed that the government is closely monitoring the case, which has been compared by some to the Post Office Horizon scandal and may have implications for the future regulation of UK franchising.

A spokesperson for the franchisees said the decision to attend the AGM was fuelled by frustration and a sense of being repeatedly dismissed by Vodafone’s leadership.

“Yet again, Vodafone has tried to portray this as simply a commercial dispute. It is much more than that — lives have been ruined,” the spokesperson said. “We came to the AGM to get meaningful engagement from Margherita Della Valle because she has the power to resolve this dispute. After everything we’ve lost — our businesses, our homes, our mental health — we deserve answers.”

“We will not continue to be ignored. We’re calling on the CEO and the Board to show true leadership, meet with us, and take responsibility for the damage Vodafone has caused.”

The protest comes at a difficult time for Vodafone, which is under pressure from sluggish share performance and underwhelming results in several key markets. The company’s decision not to disclose the legal claim as a contingent liability in its FY2025 financial statements has raised questions about how seriously it is treating the allegations.

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Vodafone CEO challenged by ex-franchisees at AGM over landmark legal dispute

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