‘Unsustainable’ gaps in policing of franchise businesses must end, MPs say

The Guardian - World NewsEN 3 min read 100% complete by Simon GoodleyFebruary 11, 2026 at 01:01 AM

AI Summary

medium article 3 min

A UK parliamentary committee has called for government action to address regulatory gaps in the policing of franchise businesses. The report follows allegations of unfair contractual practices at Vodafone, including a high court claim launched in December 2024, and reports of widespread sexual harassment and abuse at McDonald's restaurants. MPs found that the current lack of oversight allows employment abuses and exposes franchisees to unfair practices. The committee recommends a statutory code of conduct and stronger enforcement mechanisms. The report also highlights broader challenges for small businesses, including high street closures, late payments totaling £112bn by the end of 2024, and increased costs due to policy and regulation. The committee suggests replacing business rates with a fairer system and implementing stronger measures to address late payments.

Key Entities & Roles

Key Player Opposition Context

Great Britain 30% British Retail Consortium 40% Liam Byrne 50% McDonald's 60% Adrian Howe 70% UK government ×280% Vodafone ×390%

Keywords

franchise businesses 100% franchise agreements 80% employment abuses 70% policing 70% statutory code of conduct 60% small business strategy 60% regulatory framework 60% small businesses 50% business rates 40% late payment 40%