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Unsustainable gaps in franchise policing, MPs warn

12 hours ago
in Business & Economy, Latest, Politics, UK News
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Published: 11 February 2026. The English Chronicle Desk. The English Chronicle Online.

The UK government must urgently address “unsustainable” gaps in franchise policing, MPs have warned, citing concerns raised by small business owners and the recent Doyle whip controversy. The business and trade committee’s report highlighted multiple cases where franchisees faced systemic failures, leaving them exposed to unfair contracts and employment abuses. The Doyle whip situation, involving serious regulatory oversights, has renewed calls for stronger enforcement and statutory reform to protect franchise operators. The committee stressed that without effective oversight, incidents similar to those revealed by the Doyle whip case could continue to threaten the sector’s stability.

MPs examined a pattern of complaints across franchise networks, noting allegations of power imbalances between large corporations and smaller operators. Vodafone franchisees have launched a high court claim over allegedly inequitable agreements, while McDonald’s faced accusations regarding workplace harassment and oversight failures. The committee concluded that gaps in regulation, highlighted by the Doyle whip, leave franchisees vulnerable to exploitation and serious employment abuses, making current practices unsustainable.

The report called for a statutory code of conduct and independent enforcement mechanisms to hold franchisors accountable. Liam Byrne, committee chair, said, “The evidence we heard during this inquiry was stark. Small businesses face pressures comparable to the Covid pandemic era, but without emergency support. Late payments, rising energy costs, increasing crime, and complex regulation are compounding risks to SMEs’ survival.”

Highlighting the financial strain on small businesses, the report revealed that by the end of 2024, UK SMEs were collectively owed £112bn in unpaid invoices. The British Retail Consortium also estimated that the autumn budget added £7bn in cumulative regulatory and policy costs affecting retailers. MPs warned that an average of 38 high street stores close daily across Great Britain, a trend worsened by the unsustainable pressures revealed in the Doyle whip report, which highlights structural issues across franchise networks.

Franchisees’ struggles are part of systemic failings, the report states. Without clear oversight, serious employment abuses continue unchecked, and contractual exploitation persists. MPs recommended replacing current business rates with a system reflecting a firm’s ability to pay and enforcing measures to tackle late payments across supply chains. Byrne emphasized that high streets’ survival is critical, warning that government inaction threatens economic growth.

Vodafone responded, denying coercion of franchisees into unprofitable agreements. A spokesperson said the company “did not push Howe into accepting any poorly performing stores” and emphasized support to operate efficiently. McDonald’s highlighted its strengthened review processes, stating franchisees are held accountable and must comply with contracts, local laws, and company standards, with failure potentially resulting in termination.

The committee stressed wider risks of inconsistent oversight. “Gaps in monitoring franchise agreements create opportunities for misconduct and leave operators unprotected,” the report said. MPs urged statutory legislation ensuring transparency and fairness across networks. The Doyle whip example underscores the consequences of ignoring these vulnerabilities, revealing the sector’s need for comprehensive reform.

Experts welcomed the statutory code recommendation, noting franchise networks’ multi-sector complexity complicates enforcement. Legislation could standardize agreements, clarify employment responsibilities, and provide independent oversight, preventing tragedies like Adrian Howe’s and reducing litigation. The Doyle whip case has become a reference point for why structural regulation is urgently needed.

Parliamentary debates are expected to consider the report’s findings soon. MPs stressed systemic reform is crucial for small business protection. Byrne concluded that a coherent government strategy is essential to secure SME growth and maintain UK high streets, warning that failure to act risks long-term economic damage.

Franchisees and advocacy groups have welcomed the recommendations, pressing for immediate transparency, oversight, and accountability. While corporations stress internal compliance, MPs argue independent statutory enforcement is required to prevent ongoing harm.

The report paints a stark picture of pressures on franchise operators, highlighting the urgent need for government intervention. With high street closures and mounting financial burdens, enforceable regulation and a statutory code of conduct are widely supported. The Doyle whip incident demonstrates the risks of continued inaction and reinforces calls for urgent reform across UK franchise networks.

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