Jim Penman started his franchise from a basement with minimal overhead and now charges franchisees 6% instead of the typical 15%+. He argues that retaining customers through great service costs less than acquiring new ones, and that bloated overhead kills most businesses before they start.
June 5, 2025
Three
15% or more
6%
Businesses too often make three big mistakes. Number one, their overheads are too big. I started my franchise from my basement with shabby furniture and no frills. All my money went into advertising and support to make my franchisees successful. Too many businesses fail because they are too concerned to look good. Number two, they focus on marketing rather than service. It takes a lot more money to find a new customer than to keep an old one. Then what? You must to find customers and folks like Matt to turn them into fans. Number three, they are greedy. In the franchising industry, franchise fees are typically 15% or more. Ours average 6%, and we work really hard to give value. We even allow franchisees to go independent if they wish, but they rarely do.
Rising mental illness and falling birth rates have the same cause, it is this.....
