Jim’s Group launches nationwide satisfaction survey following backlash
Following reports of misconduct and regulation breaches, Jim’s Group has launched a survey to review the experience of franchisees across Australia.
Last week, the home-service company faced criticism as Jim’s Dog Wash, a division of Jim’s Group, was accused by franchisees of losing thousands in unownable trailer payments and reported by the Victorian Environmental Protection Agency for breaching environmental regulations.
Disgruntled franchisees claimed $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.
Jim’s Dog Wash has over 260 franchisees across Australia and New Zealand.
Jim’s Group founder Jim Penman subsequently addressed reports in an interview with Mumbrella.
“We just had no idea. We were shocked at any such thing,” he said.
Penman also confirmed that the claims have forced some changes to operations.
The national Franchisee Satisfaction Survey will review the experience of franchisees across the group, undertaken across all Jim’s Group divisions.
According to Jim’s Group, the results show that a high percentage of franchisees are satisfied with their experience.
79% of franchisee respondents agreed that the reality of operating a Jim’s franchise has lived up to the group’s promise, and 83% were positive about the future of their business.
Nearly three-quarters of franchisees would recommend a Jim’s Group franchise to a friend.
However, Penman acknowledged that not all of the results were positive.
“Some franchisees are struggling, and not every franchisee is happy with their decision to join,” he said.
“Not every person is suited to running their own business. But, a clear majority of our franchisees are happy and doing well. We believe we give the best possible chance of success in business, given that some 90-95% of independent trades businesses fail in their first year. Our first-year attrition rate is around 12%”.
Penman said the surveys have been running internally for the past 15 years, and he wants the national survey concept to be adopted by all franchise groups each year and the results made available publicly.
“My hope is that by sharing our franchisees’ feedback with the world, the federal government will take real action to protect franchisees by requiring all franchisors to commission such a survey,” Penman said.
“Even without this, we challenge other franchisors to commission a similar survey, and we will publish their results alongside ours without charge.”
The largest franchise chain in the Southern Hemisphere, Jim’s Group was founded by Penman in 1989, and now has over 5,400 franchisees in more than 40 divisions.
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It’s not that people aren’t suitable to run their own business it’s that you are taking a weeks earnings every month for fees, insurance and job leads would you work for one week out of every month for nothing ?
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Very average work model these days, top heavy with administration.
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Keep me posted – had a bad experience with Jim’s
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