How much can you earn with a Jim’s franchise?

Since 1989, Jim’s Group has been paving the way for small business franchising in Australia. Today, we are Australia’s largest franchising family, with more than 4,300 thriving franchise businesses across the country.

At Jim’s Group, we put our small business owners first, which is why we continue to welcome thousands of new franchisees into our company each year. The earning potential of a Jim’s franchise business is huge, and with over 50 service divisions to choose from, there’s a business out there to suit all interest areas. 

How much do franchise owners make?

The yearly earnings of a franchise business owner will vary depending on several factors. Industry, business size, and location are all important considerations when assessing a franchise business’ income potential.

You might be surprised to learn that most Jim’s Group franchises are profitable within their very first year of operating. Some of our franchise owners, like Jim’s Mowing’s Dan Cahill, even go on to achieve six-figure sales within their first 12 months! 

At Jim’s Group, the majority of our franchise owners go on to build highly successful and profitable businesses. Our franchise businesses are a gold mine when it comes to earning potential, largely as a result of our unique fee structure. Unlike most franchise companies, we don’t take a percentage of our franchisees’ total sales. Instead, we charge a monthly fixed fee, which means that our franchisees get to keep more of their hard-earned dollars to themselves. Hear from one of our Jim’s Cleaning franchisees, Poppy, as she talks about the advantages of our fee structure: 

 

 

We understand that starting a business can be tough, especially in those early days, which is why we have a powerful income promise that we make to all of our franchisees. Our unique ‘Pay for Work Guarantee’ guarantees our franchisees an income of at least $1,200 per week, so that they always have a safety net to fall back on. 

 

At the end of the day, a Jim’s franchise is a business opportunity like any other. How much you earn is completely dependent on the time and effort you put into your business, and the direction you want to take it. Some of our franchise owners run their businesses with multiple employees and take in millions of dollars worth of sales. Others are comfortable operating their businesses on a much smaller scale. Part of the reason why our franchises are so appealing to such a wide range of people is because they allow for plenty of flexibility and freedom.

Franchise profit margin

Some franchise models have lower profit margins than others. Fast food and retail franchises, for example, operate on notoriously tight margins. In these types of franchise businesses, the maximum profit you’d be looking at taking in would only be around 10% of revenue. A typical breakdown of costs in a retail and fast food franchise might look something like this:

  • 10% – 20% of revenue towards rent;
  • 30% towards cost of goods;
  • 25% to 30% towards wages;
  • 6% to 10% towards franchise fees (usually calculated as a percentage of sales);
  • 5% towards utility bills

 

Mobile-based, service franchise businesses operate on much higher profit margins. By eliminating rental costs and cutting down on staff wages and utility bills, mobile-based franchises usually operate with fewer cost pressures and demands.

At Jim’s Group, our franchises come with low startup costs and low overheads, meaning that we have some of the most profitable franchise opportunities out there on the market. And since we don’t take a percentage of our franchisee’s sales, our franchise business owners typically enjoy high profit margins. 

Multiple franchise owner salary

A multi-unit franchise arrangement is an arrangement in which a franchisor grants a franchisee the rights to open and operate more than one franchise business in a single region. The franchisee will typically hire staff to help manage and operate their businesses across the region. 

Franchise owners who own multiple franchises can see an even greater increase to their earning potential as it allows them to draw income from multiple income streams. For people who are experienced in the business of franchising, owning multiple franchises can be a great way to diversify their business portfolio. 

Again, the salaries of multi-unit franchise owners will vary significantly depending on the industry in which they’re operating, their business model, and their level of expertise. On top of that, every franchise company is different, so the best way to get an accurate reading of the earning potential of a multi-unit franchise owner is to get in touch with the company.

It’s important to remember that you don’t have to own multiple franchises to earn a six-figure income. We have many franchise owners at Jim’s Group who earn well over $100,000 by operating only a single business. In fact, buying multiple franchises often involves having to pay higher upfront costs and higher operating costs, so it’s a good idea to weigh up the cost benefits of signing onto a multi-unit franchise agreement before you really commit.

 

Are franchises a good investment?

At Jim’s Group, we truly believe that our franchise businesses are great investments. Our franchisees do remarkably well compared to their competitors. Most of our franchisees are profitable within their very first year, which is an amazing achievement when you consider the fact that 20% of small businesses fail within their first year and 60% go bust by their third year

When you buy a Jim’s Group franchise, you’re buying the rights to operate under a nationally-recognised brand. This goes a long way in gaining customer trust and goodwill. On top of that, you have access to ongoing support from our dedicated head office and access to national leads from day one. So it’s safe to say that buying a Jim’s Group business is a great investment that puts you in good stead for both short-term and long-term success.

At Jim’s Group, we pride ourselves on being a true lifestyle business. Our franchisees are given the opportunity and freedom to set their own hours, to take time off when they want, and to grow and develop their own businesses in their own time. If you’d like to join our fast-growing family this year, contact us today on 131 546 or enquire online to discuss next steps.