We get asked these questions every week. Here are honest answers from Jim Penman, founder of Jim’s Group. This article covers 15 of the most common questions about Jim’s franchises.
Watch the video above, or keep reading for the full Q&A.
How does territory work?
Territory is a right of first refusal. A Jim’s franchisee in a particular division, such as mowing or cleaning, gets the first right to jobs that come through Jim’s Group inside their territory.
That does not mean a franchisee is locked inside that territory. Jim Penman says franchisees can work outside their territory if they wish. The main restriction is that they cannot doorknock another franchisee’s territory or try to plunder it.
For anyone comparing franchise models, this is one of the practical points worth understanding before you explore Jim’s franchise opportunities.
Are Jim’s Franchises profitable?
Most Jim’s franchises are profitable, according to Jim. He says anonymous and confidential franchisee surveys show about 9% of franchisees report making poor money.
A bit over half say they make good money, while the rest say they make okay money. Jim’s direct point is that results depend on the person. Not everyone is suited to being a franchisee.
This is why the better question is not only “Is it profitable?” but “Am I suited to this type of business?”
Which is the most profitable Jim’s Franchise?
The most profitable Jim’s franchise depends on how the business is operated. Jim says divisions such as trees, skip bins, and antennas can be profitable for an individual operator doing one-off jobs.
But the top earners often come from divisions like mowing and cleaning, where franchisees build teams and turn over millions of dollars a year.
Jim says the better question is: what do you like doing? If you like being outside, mowing may suit you. If you like cars, car detailing may fit. If you love animals, a dog wash may be a better match. You can also review Jim’s advice on choosing the right franchise division before deciding.
Why do I need to pay lead fees?
Lead fees help steer jobs to franchisees who really want them. Jim says Jim’s Group has tested different fee models and found that lead fees help reduce clients being ignored or poorly followed up on.
According to Jim, franchisees on lead fees tend to get about 50% more work done per lead. Jim’s also allows 15% for drop-off because some clients are not contactable.
His advice is simple: phone, text, then phone again. Many customers are hard to reach, but persistence matters. A single call and then giving up will often lose the job.
Is there an income guarantee?
There is no guarantee of business success, but Jim’s has what Jim Penman calls a pay-for-work guarantee. This applies when a franchisee is consistently asking for work, doing everything right, and keeping their franchisor updated.
If they cannot make the set level of income, they may go to free jobs or free promotional services up to that limit, depending on the division.
The purpose is to help build cash income quickly. Jim says most franchisees would break even in their first month. You can read more about Jim’s broader franchise model and common questions on the Jim’s franchise FAQ page.
How long does it take to break-even?
Break-even depends on the franchisee. Jim says that if break-even is measured against the pay-for-work guarantee level, most franchisees may break even at least in their first month.
That does not mean every franchisee earns the same amount or grows at the same speed. It means the system is built to help new operators get work moving quickly when they follow the process properly.
This is a useful answer for anyone worried about the early cash-flow stage of starting a service business.
How many hours do franchisees need to work?
Jim’s franchisees choose their hours because they run their own business. Jim says some franchisees work very long hours, including 60 or 70 hours a week, but that is not normal for everyone.
Many work normal hours. Some work part-time or flexible hours. Others are semi-retired and keep operating because the model suits their lifestyle.
The required workload also depends on the division. Mowing can build regular clients quickly, while antennas, skip bins, and trees may need a higher flow of ongoing leads.
Is there enough work?
Jim’s Group had more than 200,000 clients knocked back in the last year because there were not enough franchisees available to handle the work. Jim says many franchisees are booked out and not taking more jobs.
He also says a common assumption is wrong. People often think that more franchisees in an area means less work per franchisee. Jim says the opposite can happen.
When two, three, four, or five franchisees operate in an area, brand awareness grows through more advertising, more vehicles, and more signage. That can increase work per franchisee.
Do you need experience?
Some Jim’s divisions require experience. Jim lists plumbing, electrical, scratch & dent, and some handyman work as examples where a background or qualification may be needed.
But most divisions do not require prior experience. Jim says the great majority can be taught from scratch, including mowing, cleaning, dog wash and pest control.
This matters for career changers. The right division can give someone a practical business path without needing years of previous industry experience.
What percentage does Jim’s take?
Jim’s does not work like a simple percentage-only model. Jim says the typical franchise probably pays about $800 per month, while the average franchisee turns over about $150,000 a year based on surveys.
On a strict average, he says that works out to about 6% of turnover. For larger franchisees turning over $1 million a year, fees can become a tiny fraction of turnover.
Some lead-heavy divisions, such as antennas, skip bins, and trees, may pay around $2,000 per month because they need more leads and advertising. For a fuller explanation, see Jim’s guide on how franchising fees work.
Can this turn into a 6 or 7-figure business?
Yes, Jim’s franchises can turn into 6 or 7-figure businesses. Jim says Jim’s Group has many franchisees turning over more than $1 million a year, with some in the multiple millions.
His point is that critics often misunderstand how profitable a well-run service business can be. When pricing, systems, and operations are handled properly, even simple services can become strong businesses.
This is especially true when a franchisee moves beyond a one-person operation and starts building a team.
Who should not buy a Jim’s franchise?
A Jim’s franchise is not right for someone who lacks work experience, discipline, or business readiness. Jim is especially cautious about young people whose parents are putting in the money.
He says buyers need to understand they are buying a business, not a job. There is no boss standing over them every day.
Jim’s looks at whether a person is disciplined, emotionally steady, supported by their partner, and genuinely suited to self-employment. Jim says they knock back 10–20% of applicants for one reason or another.
Why do some people complain about Jim’s franchises online and foreign?
Some people complain because there will always be unhappy people in any large business system. Jim says Jim’s has nearly 6,000 franchisees and that 90% plus will be fairly positive.
He also accepts that some people do fail. His comparison is that someone starting a trade business alone may have only a 5% to 10% chance of still being in business after 12 months.
With Jim’s, he says the chance of being in business after 12 months is about 88%. That does not remove all risk, but it shows the difference a system can make.
How powerful is Jim’s brand?
Jim’s brand is powerful because it helps franchisees get leads and charge stronger prices. Jim gives the example of a security door business selling the same doors from the same factory.
Under the Jim’s brand, the door sold for $1,000. Under the operator’s own brand, it sold for $850. Jim says the extra $150, or 15% to 20%, came from the power of the brand.
The brand also carries trust signals such as reputation, backup, insurance, and police checks. For some buyers, that trust can be the reason they choose a Jim’s franchisee over an unknown operator.
Do I get to meet Jim?
Yes, franchisees can meet Jim Penman if they come to Melbourne. Jim says New Zealand franchisees may meet him electronically.
He also says every franchisee has his direct phone number and email address. On the day of filming, he had already spoken to or contacted at least six or eight franchisees.
Jim says he is easy to contact and usually responds quickly by email, often within a couple of hours.
Ready To Ask Better Questions About Buying A Jim’s Franchise?
The best way to assess a Jim’s franchise is to ask practical questions about territory, fees, leads, income, workload, experience, and support.
A Jim’s franchise is not a job. It is a business. That means the best results usually come from people who are disciplined, persistent, coachable, and willing to follow the system.
If you are comparing franchise options, start with the questions above, then review the available divisions, costs, and support before making a decision. You can also learn more about starting with a specific division through Jim’s guide on how to start a Jim’s Mowing franchise.