Jim Penman, founder of Jim’s Group, recently shared valuable insights about building Australia’s largest franchise network and why he has no plans to ever sell the business.
His reflections highlight the importance of customer service, adapting to change, and keeping values front and center, lessons that every franchise owner can apply.
From Student Job to National Brand
Jim’s journey started in the 1970s with a lawnmower and a simple ad in a newsagent.
“I did it as a student job until 1982. Intended to be an academic, that completely fell apart, so I turned my part-time student job into a full-time lawnmowing business,” he told Paul Jones and Tim Spargo of Jones Real Estate.
It was not an easy start.
“I was deeply in debt at the time, so it was not a good situation,” Jim recalled.
But one thing he knew how to do was look after people.
“I was very, very good at customer service. I picked up regular clients, I looked after people, and did a good job. So then I started getting busy.”
That focus on service became the foundation of Jim’s Group, which today boasts more than 5,500 franchisees across mowing, cleaning, test and tag, and dozens of other divisions.
Learning from Competition
The turning point came in the late 1980s when a competitor, VIP, expanded into Melbourne.
“They terrified me. They had hundreds of franchises at the time, and I thought these guys would crush me,” Jim admitted.
He even offered to join them, but when they declined, he studied their model and realized he could build something better for franchisees.
In 1989, Jim launched his first franchise, modestly predicting he might one day reach 100 franchisees.
Today, the number is more than fifty times that.
Adapting to Technology
For Jim, staying relevant has always meant embracing change.
“The internet changes everything. Our methods now of finding work are all to do with Google, Facebook, and social media,” he explained.
Technology has also transformed operations.
What once required a manual blackboard system to allocate jobs is now fully automated.
“The client gives their details online, and we match them to the right franchisee instantly,” Jim said.
A Business Built on Fairness
Despite the scale, Jim insists his focus has never been just on profit.
“Jim’s is not primarily designed to make money,” he said.
Recently, he reviewed franchise fees for fencing franchisees and decided they were too high.
“I just don’t think it’s fair. So we actually drastically cut their fee by about three or four hundred dollars a month.”
This approach reflects his philosophy that franchising is about service to customers and to franchisees.
By ensuring fairness and strong support, franchisees can focus on doing quality work and growing their businesses.
Why He’ll Never Sell
Many successful founders eventually cash out, but Jim has no intention of selling Jim’s Group.
“It’s not about the money,” he explained.
His motivation has always been tied to his passion for research and values, not personal wealth.
“I am still active at the weekends, my hobby is going out gardening. My heart bleeds green because I did it for 15 years and I love it.”
Lessons for Franchise Owners
Jim’s journey offers practical lessons for anyone running a franchise:
- Build your business on customer service, as it creates loyal, repeat clients.
- Study competitors closely and learn from them.
- Embrace technology to improve efficiency and customer experience.
- Be fair and transparent with pricing and fees; it builds long-term trust.
- Focus on values and purpose, not just profit.
As Jim summed it up, franchising success is built on service and ethics.
For Jim’s Group franchisees, that means always putting the customer first while leaning on the strength of a brand trusted by thousands.