Jim PenmanCEO, Jim's Group · CEO and Founder of Australia's largest franchise, Jim's Group

Franchising VS Starting a Business 🤔

14 May 2025 · 1 min

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Jim Penman, who has started over 50 businesses in 35 years, argues that independent service businesses fail at roughly 90% in year one, while franchises lose only about 12% of franchisees. He recommends learning proven systems or partnering with experienced operators rather than going it alone.

Questions this video answers

Around 90%.

Around 12%.

More than 50 businesses and new divisions over the past 35 years.

Spoken/transcribed title: 'no Other Success. I Down How Franchising Built Me an Empire' (as delivered).

Chapters

I don't know how many people know this, but around 90% of independent service businesses fail in their first year. We lose around 12% of our franchisees in their first year. And not all these are failures. Some simply prefer to continue as independents. I've started more than 50 businesses and new divisions in the past 35 years, but not all of these have succeeded. The key is to know their business and have worked in it, or to partner with someone who has. With a franchise, you learn systems that already work. It's much less risky, especially people who want a work life balance. If you've ever wondered how to build a business that lasts, check out my book no Other Success. I Down How Franchising Built Me an Empire.