Jim Penman, founder of Jim’s Group, recently sat down with Jayson Westbury at the National Franchising Convention in Melbourne to share the story behind Australia’s largest franchise network and the philosophy that keeps it thriving.
With more than 5,500 franchisees across 50 divisions, Jim’s Group is a household name, but according to Jim, its success was built on something simple: fear and fairness.
How It All Began: The Fear That Sparked a Franchise Empire
When asked what prompted him to turn his lawn mowing business into a franchise, Jim didn’t sugarcoat it.
“Fear, basically,” he said.
“I had a business that was building up and selling lawn mowing rounds, and then VIP came from Adelaide as a franchise, and I thought they’d crush me if I didn’t franchise. So I set out to learn what I could from what they were doing and devise my own system.”
That defensive move in 1989 became the foundation of an empire that now covers everything from cleaning to dog wash, fencing, and even driving schools.
Putting Franchisees First: The Real Secret to Growth
When Jayson asked what’s driven Jim’s success over the decades, Jim didn’t hesitate.
“Our first priority is the welfare of franchisees,” he said.
“Everything we do looks at it in terms of what will make a franchisee successful.”
From the very beginning, Jim wrote fairness into the franchise contracts.
“Franchisees own their clients. They can sell the rights to them. They can’t have it taken off them. They’ve got an automatic right of renewal,” he explained.
Jim’s Group also introduced systems that protect franchisees’ freedom.
“They can move to a different franchise or even a different division if they wish. They can vote out their franchisor or veto changes to their manual,” he said.
“We put all these systems in place to make the franchise maximally attractive to franchisees. That’s the one key principle.”
Building Accountability from Within
Jim believes that ethical franchising requires constant feedback from the people who matter most, the franchisees.
“Every year we poll our franchisees confidentially and ask them questions about the support they’re getting,” he said.
“How often does their franchisor ring them? How helpful are they? How quickly do they get back to them?”
These results are used to rank and reward franchisors.
“We publish the results and give awards based on how well they’re doing. If you came in today, you’d have seen a sign called the Diamond Wall. That’s for franchisors who get top ratings from their own franchisees,” Jim said.
He believes this model could improve franchising across Australia.
“If we did that across the entire industry, it would do more for ethics in franchising than a hundred disclosure documents,” Jim said.
Cutting Through the Red Tape: Jim’s Take on Regulation
Jim is also outspoken about the over-regulation of franchising.
“The disclosure document is completely useless,” he said.
“You need a franchising lawyer to understand it, and most franchisees never read it. The only useful thing about it is the requirement to give a list of all current franchisees with their contact number. That’s what we’ve done for 36 years.”
Instead, he says prospective franchisees should go straight to the source.
“Get that list and ring as many franchisees as you can. Don’t listen to what the franchisor says, ask the franchisees,” he said.
“If they say the company looks after them and keeps its promises, you’re in good hands. If they don’t, stay away.”
How New Divisions Are Born Inside Jim’s Group
When asked about the growth of new Jim’s divisions, Jim said many start from within the network.
“One of our mowing franchisees in South Australia came up with Jim’s Driving School,” he explained.
“He was a great franchisee, had a perfect customer service record, and was making a good income. We said, right on.”
Other divisions, like Jim’s Laundry, also began as franchisee ideas.
“In three years, we had 120 franchisees in Jim’s Laundry, and it’s still growing,” Jim said.
Jim’s approach to new ventures is pragmatic.
“We look at whether franchisees can make at least $70 an hour and whether the business has volume potential,” he said.
“We also look at the person. Do they know the industry? Do they have the right attitude? That’s how we decide.”
Fairness, Feedback, and Flexibility: Lessons for Franchise Owners
Jim’s message to franchise owners and business leaders is clear: fairness, accountability, and adaptability drive success.
“The real test of any franchise system is what the franchisees think about it,” he said.
“It’s not the profit or the public image, it’s how the people running the business feel about it. If they’re happy, your business will thrive.”
To learn more about how Jim’s Group supports over 5,500 franchisees across Australia and New Zealand, visit jims.net.
Common Questions About Jim’s Group
Q: How did Jim’s Group start?
Jim began as a lawn mowing contractor and franchised in 1989 after competition entered the market. The company has since grown into more than 50 divisions across Australia and New Zealand.
Q: What is the “Diamond Wall” at Jim’s Group?
The Diamond Wall recognises franchisors who receive top ratings from their franchisees based on communication, support, and responsiveness.
Q: How can someone start a Jim’s franchise?
Prospective franchisees can visit jims.net to find available opportunities, contact existing franchisees, and attend information sessions.
Q: Does Jim’s Group own any franchises?
No. Jim’s Group operates entirely through franchisees, ensuring every location is independently owned and run.
Listen to the Podcast Now:
- Watch Jim Penman’s interview from the Jim’s Podcast on YouTube.
- Where to subscribe: Jim’s Podcast Website | iTunes | Spotify | YouTube