By Gordon Drakes, Co-head of Franchising and Distribution, Fieldfisher

Here, I assess the key developments in franchising in 2025 and offer strategic insights for UK franchise systems to thrive in 2026 and beyond.

In 2025, we have seen parliamentary debates on regulation, a landmark case law on good faith in franchising, and the filing at the High Court of the much anticipated claim between Vodafone and its franchisees.

The English Courts are signalling a growing intolerance for franchise disputes which involve rigid, one-sided, standard franchise agreements, particularly where the inequality of the bargaining power is stark. The UK Government has been watching and considering intervention.

The legislative environment is becoming complex and regulators are gaining more powers. There was a U-turn over the repeal of the UK’s Commercial Agents Regulation, and new legislation, in the form of employment law reform, and increased regulation of online activities means that for franchisors, the lesson is clear: adapt or die.

The regulatory drumbeat: A call for accountability
The year began with a UK Government Business Select Committee hearing into claims of sexual harassment in the McDonald’s UK network.

As one of the leading franchisors in the UK, the spotlight inevitably shone on franchising, and the issue exposed a franchising Gordian Knot; the public (and Government) do not appreciate the distinction between a franchisor store and a franchisee store – they see one brand – but a franchisor cannot control a franchisee’s operations and practices in the same way as it controls its own.

• To read the full article, view Franchise World Spring 2026 issue, page 45.

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