‘We just had no idea’: Jim’s Group founder responds to reports of misconduct and breaches
The founder of the famous Jim’s Group has hit back at reports that one of its businesses was embroiled in misconduct and regulation breaches in a new interview with Mumbrella.
First reported by news.com.au, Jim’s Dog Wash — one of the many businesses under the Jim’s Group umbrella — has been hit with a number of allegations by franchisees, including that they have missed out on thousands of dollars on trailer payments that they will never own, as well as a report by the Victorian Environmental Protection Agency that it was breaching the state’s environmental protection regulations.
Jim’s Dog Wash has over 260 franchisees across Australia and New Zealand.
Speaking to Mumbrella this week, founder Jim Penman said he was “shocked” when the reports first came to light.
“What basically happened is that [News Corp] were talking to a small minority of franchisees who are very unhappy,” Penman said.
“And in any franchise system, you’re going to find some people who are struggling.”
According to Penman, the concerns surrounding the ownership of trailers for dog washes began to emerge six to eight months ago.
Disgruntled franchisees claimed that $25,000 of a $49,000 fee to own a franchise specifically related to obtaining the trailer, however an alleged change to contracts from 2021 meant that franchisees do not own the trailer despite the fees.
Despite this, Penman disputes the claims.
“That’s obviously in all of our documentation, in our contracts, disclosures, everything. It’s absolutely clear that we own the trailer,” he said.
“As soon as we found out that was happening, we actually put a process in place where everybody who signed actually had to sign a separate agreement saying they understand this.
“We just had no idea. We were shocked at any such thing.”
Though he maintains he was not aware of any bad behaviour being committed by the franchisees, Penman said the claims have forced some changes to operations.
“Well, we’re changing everything,” he said.
“I mean, we are making it super, super clear — and we have for the last nine months or so — we do own the trailers. They have to actually sign a written statement.
“Not just in the contractor’s approach, but they have to actually sign that particular statement, and then it goes through with them… and we’re also changing the sales process to make sure that, you know, no more misleading claims.
“Every franchisee in Jim’s Group has my phone number and email address. If there’s any specific concerns about anything, I’m always happy to talk to them.
“All you can say is that if you go into business as an independent, your chance of being in business in the next 12 months is between about 5 and 10% . This is for a service business. With us, it’s, like, 88%. We try very hard. We provide support, we do everything we possibly can, we trial people in advance, we train them, we screen those we don’t think are suitable, we do a lot to try and make people succeed. But people are still going to fail, people have got to recognise that. It’s sad, it’s awful to read these stories, but it’s a nature going to business – if you don’t want to take the risk of failure, then you’ve got to get a job.”
Meanwhile, the reported regulation breaches relate to claims that franchisees were not disposing wastewater correctly.
According to Penman, the breaches were being committed by one particular franchisee, who had been moved on from the group “about four weeks ago”.
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They give you a million pages of contract knowing that no one will read it and will trust the name and sign it. Jim plays the nice guy till you’re fully joined and signed then you see his real face when you tell him you’re struggling to pay his fees.
When you buy a franchise he charges you extra 60% as start up kit and when you sell it they charge additional $25% of selling price. And while you’re in it there’s monthly fee of couple thousand per month.
It’s a trap not sure how he’s been getting away with frauding vulnerable people.
They send you leads with wrong address/phone numbers or and when you try to cancel a lead they give you hell, lead fees are not small amounts they’re just under $100 per lead.
He’s really getting the juice out of poor people.
He’s laid bad foundations and my predictions say his whole empire of falsehood will collapse God Willing.
I cut peoples lawns for $30 Jim’s mowing franchises change $80 RIPHOFF
Beware, EVERYTHING finds its way to Jim Shifty Penman.
Jims is a joke .
Love to sue for stress he put me under ?
Has this post been shared to a disgruntled Jim Mower franchise Reddit thread?
I cannot quite understand why you would buy a lawnmowing franchise when you could build one yourself? Simply doesn’t compute for me????
Perhaps someone should investigate the ‘Jims Test & Tag’ franchises operati g in clear contravention of AS3760. The standard says that it specifically does not apply for medical equipment, which is tested to the much more stringent & complex AS3551. Yet, all over town, we see medical centers with their equipment bearing Jims stickers.
If there was ever an incident, the practice would have 0 protection but imagine trying to sue the Jims franchisee.
A colleague has tackled them over it, but silence, denials and pleading ignorance is all you get.
Good onya Jim good onya there’s always someone’s who is not suited to be a franchisee. They think it’s just a walk in the park and become a millionaire in no time.
& These who get a fine for one thing or another should pay for it themselves.
.
PS I’m no longer on Facebook or Twitter, the only thing that I’m on is YouTube.
Once again good onya
Jim Penman knows exactly what is going on, but sells himself as the innocent party. I can assure you, from my many, many dealing with the man, he is the instigator of dodgy practices, but will throw anyone and everyone under the bus to protect himself. There are 2 Jim Penmans’. The first is the one you see on TV, playing the good guy. The second one, the real Jim, is a nasty, conniving, bitter, sociopath. He has made his money taking advantage of vulnerable people, selling them a dream and delivering a nightmare.
Jim is a very rude man. He believes that his word is always right. What goes around comes around!
Shifty as a cut snake old Jimmy Boy
I had a pool are franchise here in SA, I tried to claim the Minimum Wage Guarantee, Jim, said I couldn’t have it as I wasn’t working hard enough, I bought a new franchise, with 0 customers, Jim’s offers a minimum wage guarantee, if franchisees are earning below a certain income.
I rang Jim Penman, after his group failed to deliver business training, I had a 5 day course delivered in 3 hours in my house, he said I was too negative, and refused to talk to me.
I advise no-one buys a Jim’s franchise, he is a scammer, and he knows he is.
I was fortunate, I sold my franchise after a year, with 20 customers.
Every lead I got through the call centre cost me $22, this didn’t guarantee a job, but his fees crippled my business.
I ended up doing a deal with a local pool shop, who gave me more work than the Jim’s scam ever did.
DO NOT BUY A JIMS FRANCHISE!!!!
Jim Penman is famous amongst franchisees for being completely dodgy. It is not just ripping off franchisees but also in dealing with dodgy operators who rip off customers. He just does not care until affects his perception.
“As a franchisee who has been with Jim’s for a number of years, I’ve unfortunately experienced some of the same challenges highlighted in this article. “The lack of support from the franchisor in advertising has made it difficult to operate “The communication from the franchisor is often unclear and inconsistent, leading to confusion and delays.
They keep talking of unserviced leads, but are never specific of the areas.
Once you sign on the dotted line, one is hooked.
They also sign on any Tom dick and Harry on as Franchisees, who usually have no business acumen whatsoever, and these guys make a bad name for others
I am thinking about buying a “Jim’s Brain Surgery” franchise. I am assured all training will be given.
The truth about Jim? Not a good person…but there’s many like him operating businesses without honesty, scamming hard earned dollars from good people.
Unfortunately Jim will continue, until he crosses the legal line with the ATO, I’m guessing he’s already doing this…
Metropolitan Plumbing. I lost all faith in Jim after these guys turned up for a minor roof repair. Screwed.
Not sure bout others but mowing is a simple as a $40 mower from gumtree & $15 whipper snipper go door knocking & each job save or buy another tool, DID exactly this & made a wage within a week….Nothing comes easy except for franchises you don’t need,they get the work from people who need jobs done & nobody to do it DOOR KNOCK & $50 worth business cards made & your away you don’t need all the fancy gear you can replace that over time,also kick it of straight after winter not before….Jim’s Jim we all know this anything he has anybody can start themselves how do you think he did.
WORD OF MOUTH IS KING
Well ACTUALLY what can I say. I ACTUALLY noticed that ACTUALLY was a much used word in Mr Jim’s comments. Surely there are ACTUALLY a host of other words that would ACTUALLY do the same job.
Not part of any Jim’s affiliate. However my friend is. He said jim is special in that he doesn’t charge commission on leads. Just a referral fee for the lead. Every other franchise charges comms on the actual price that the franchisee charges.
Seems to be an honest business, but the people who hand out leads seem to recruit franchisees who are friends or family and give them the best leads. Conflicts of interest might have caused a lot of problems without the franchisees being aware. Good luck finding out why your leads dry out in the rich areas.
Im sorry Jim but I call bull sh*t, you knew everything and don’t care
[Edited]
I would not touch Jim’s building inspections even if given a free car. I know of a franchisee that was happy to write a completely false building report for a court case , even cherry picking the Australian standards to prop up his story. Not sure how much money changed hands but there was a known connection to the client which was clear to see considering they lived an hr apart and there were literally dozens of other Jim’s inspectors in surrounding suburbs.
As a user of Jim’s Cleaning Service I have found them to be great. Any issues easily cleared up and great people to deal with. There are bad people in all society.
Many years ago when franchises became the thing, I had many operators tell me to ‘stay the hell away’ from franchises – they are complete nightmares, especially regarding the goal posts shifting all the time!!!!
Had a Jims Mowing franchise around 1990 in SA for a few years,fees went up 30%in one hit so called a meeting with state owner Phil Maunder who had qld as well,a 100 franchisees showed.when Maunder got up to speak he told all present thats the way it is and promptly got in his merc and left,yes a bunch of thieves,finished with them unable to sell and a debt,do not support this chain,use private only!!!!!