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How would Jim’s Group CEO, Jim Penman fix the franchise system?

Picture of Jim's Group CEO, Jim Penman being interviewed by Joel Kleber



The Jim’s Podcast has been around for a number of years and early on, Jim Penman and I use to do it every week until Jim pretty much ran out of things to say. I will probably revisit the early subjects for his new takes on them however, this one on ‘how to fix franchising’ has a lot of great and controversial franchising information in there.

Jim and I have heard a lot of horror stories out there and there is not much that can be done in a franchise-loving country like Australia, so why not try some of these ideas?

Hosted by Joel Kleber, this video is a treasure trove of information for anyone interested in the franchising business.

The Jim’s Podcast hosted by Joel Kleber

Key Takeaways

1. The Importance of Franchisee Rights

Jim Penman emphasizes the importance of franchisees having a say in changes to their operating system. He believes that franchisees should have the right to veto changes that could negatively impact their business. He also discusses the potential problems that can arise when a successful franchise is bought out by a money-oriented multinational corporation.

2. The Need for Government Intervention

Penman suggests that the government should step in to give franchisees more rights, such as the right of renewal at the end of their term. He also argues that franchisors should not be allowed to raise rent more than the rate of inflation or market rates, and that laws should be put in place to protect franchisees from unfair business practices.

3. The Power Dynamics and Legal Challenges

Jim discusses the power dynamics between franchisors and franchisees, and how the legal system often favors those with more resources. He shares his experiences in court and emphasizes the need for a more accessible and fair justice system for franchisees.

4. The Role of Communication and Collaboration

One of the positive experiences shared by Jim is how a franchise company surveys its franchisees every year to gather feedback and improve their operations. He suggests creating a transparent website where franchise ratings and feedback can be displayed to potential franchisees.

5. Simplifying Legal Contracts

Jim Penman has experience in simplifying the language in franchise agreements to make them more understandable and fair for franchisees. He also talks about the role of an Advisory Committee in representing franchisees and making decisions in collaboration with franchisors.

Notable Quotes

“The key to success in franchising is an overriding concern for the welfare of franchisees, and constant improvement in customer service.” – Jim Penman

Analysis and Insights

The insights provided by Jim Penman are invaluable for anyone interested in franchising. It is evident that the franchising model, while lucrative, can be fraught with challenges, especially for franchisees. The power dynamics between franchisors and franchisees need to be balanced, and legal contracts should be simplified to ensure fairness.

Moreover, government intervention and the establishment of protective laws can play a significant role in safeguarding the rights of franchisees. Communication and collaboration between franchisors and franchisees are essential for the success and growth of the franchise business.


Jim Penman’s insights into the Australian franchising industry shed light on the complexities and challenges faced by franchisees. His emphasis on franchisee rights, government intervention, communication, and simplification of legal contracts are critical takeaways for anyone involved in or considering entering the franchising business. It is essential to approach franchising with an informed perspective and a commitment to fairness and collaboration.

About the Author

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I went from foster care to the CMO for Australia's largest franchise, the Jim's Group. I share my knowledge that helped us grow to 5,300 franchisees with various content marketing and other strategies. I personally manage multiple Jim's brands and do the actual work, not just delegate. I also have multiple online websites where I am currently building online revenue sources.

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