We get asked these questions every week. Here are honest answers from Jim Penman, founder and CEO of Jim’s Group. This article covers 12 of the most common questions about owning a Jim’s franchise.
Watch the video above, or keep reading for the full Q&A.
How does choosing a franchise differ from undertaking the venture independently?
Choosing a franchise instead of going alone gives you a much higher chance of staying in business.
Jim Penman says someone starting a cleaning or gardening business independently has only a 5 to 10% chance of still being in business within 12 months. By contrast, Jim’s figures show an average of 88% of franchisees are still franchisees after the first year.
The system, support, leads, and brand make it easier to survive the first year, which is where many small operators fall over.
What support does Jim’s Group provide?
Jim’s Group provides training, regular contact with a franchisor, and ongoing meetings.
Jim says new franchisees get a minimum three-day period of generic training, plus divisional training on top of that. That means you are not expected to work things out from scratch.
Support continues after training. A franchisor is meant to ring you regularly, at least once a month in the beginning and ideally weekly, and the group runs at least eight meetings a year. If you want a closer look at how the system is set up, read this.
What fees do you charge?
For most divisions, the average fee is about $750 per month.
Jim says franchisees, based on surveys, mostly turn over a bit under $3,000 a week, which puts the average fee at about six percent of turnover. He is also clear that fees are not calculated as a flat percentage.
The model is a base fee plus a small fee for each lead provided. That means the more you grow, the smaller the fees can look as a percentage of turnover. Jim says a franchisee making more than a million dollars a year might only be paying about one percent of turnover, with no extra fees for taking on more staff.
What is the income guarantee and how does that work?
Jim’s does not offer an income guarantee as such. It offers a pay-for-work guarantee.
If a new franchisee is not making their minimum level, which can range from $1,000 to $2,500 per week, they can offer free services to people they choose, including friends, neighbours, relatives, or other Jim’s franchisees. The free service is usually capped at about $90, and Jim’s will pay it once the work is verified.
Jim says this works better than a standard income guarantee because it helps build the business at the same time. It can create upsells, referrals, and local awareness. There is no repayment and no catch, but the franchisee does need to take the paid work being offered within a reasonable distance of the territory, usually 25Ks. You can compare that with the broader franchise FAQ page.
How many leads does Jim’s Group receive each year?
Jim’s Group receives the best part of a million leads a year.
Jim also says something close to 30% of those leads go unserviced, which tells you there is still plenty of work available in the system. The exact amount of opportunity depends on the division, but the broader point is that demand is not the problem.
Lead flow matters because you are buying into a system that already has volume, not waiting around hoping the phone rings.
What is the benefit of Jim’s Brand?
The main benefit of the Jim’s brand is customer comfort.
Jim says customers often choose Jim’s because they have used the service before and had a good experience. They also know the brand promotes police checks and a minimum of $10 million public risk insurance, and they know the group will follow up if something goes wrong.
That trust helps franchisees in two ways. First, it tends to generate a lot of leads. Second, it lifts conversion rates, which means you are less likely to compete purely on price. Jim says the brand allows franchisees to win work without having to cut prices just to get in the door.
What technology is used in Jim’s?
Technology is a major advantage inside Jim’s.
Jim says the group spends $3 to $4 million a year on technology. One key system is FMS, the Franchise Management System, which helps the office work out exactly which franchisee is taking work in a given area at that moment, even if there are many franchisees in that territory.
The business also uses customer surveys to track service quality and respond when standards slip. On top of that, franchisees get Jim’s Jobs free of charge, which is the internal scheduling system used to organise work. If you are weighing up the full opportunity, check this out.
How Jim’s call center operate?
Jim’s runs a live local call centre in Australia, with another in New Zealand, and it is built to answer quickly.
Jim says most calls come through the call centre directly, and the average answer time after the recorded message is less than 10 seconds. He also says people who ring are more likely to convert than people who book online, which makes those leads especially valuable.
Support does not stop with the customer side either. Jim says every franchisee has an individual coach, meaning their franchisor, who must respond within 24 hours and often responds on the spot. Franchisees also get Jim Penman’s direct phone number and email address.
What divisions should I do?
You should choose the division you actually like doing.
Jim says enjoyment matters for two reasons. First, work feels less like a job when you genuinely like it. Second, people usually get better at work they enjoy. His own example is lawn mowing. He says he did it for 15 years and still loves gardening, but he tried carpet cleaning and hated it.
He encourages prospects to think practically about what suits them. Dogs might point you to dog washing. Cars might point you to detailing. Electronics might point you to antennas. IT might point you to IT. Pest control suits people who like solving tricky problems around homes. The best next step is to spend time on the road doing the job and see if it fits. This guide is useful here.
What questions should I ask my franchisor?
Start by working out whether you can get on with your franchisor.
Jim says that relationship matters because your franchisor will become very close to you over time. He says long-term franchisees regularly tell him their franchisor cares for them, looks out for them, and responds when needed.
After that, he recommends getting out on the road with experienced franchisees and ringing as many franchisees in your region as possible. His rule of thumb is simple. If you ring 20 franchisees, 18 or 19 should be happy, and one or two may be struggling. If half of them are struggling, stay away.
What are some inspirational franchisee stories?
Some franchisees start with a modest buy-in and go on to build very large businesses.
Jim says he has seen franchisees begin with an ordinary franchise costing $20,000 to $25,000 and become multi-millionaires. His example is a cleaning franchisee who already had his own business before joining Jim’s.
According to Jim, that franchisee was literally cleaning toilets and doing floors when he started. He now earns more than $1 million a year in net income. That does not mean every result is the same, but it shows what is possible.
What should I do next?
Talk to your franchisor, get out on the road with a franchisee, and do proper research.
Jim says prospects should not be too narrow and should be willing to look at several divisions if needed. He also encourages people to speak to competitors, talk to their franchisors, ring their franchisees, and compare what they hear. In his view, the best franchisees are the ones who ask the most questions and prepare properly.
If you want a practical next step, start by reading about the opportunity, then speak to the team and ask for a day on the road. You can start here or review the wider franchise information before making a decision.
Ready to take the next step? Review the division options, look over the franchise FAQs, and speak with Jim’s Group about whether the model suits your goals, budget, and the kind of work you actually want to do.