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

Want to franchise that business? Heres how 👀

12 Jun 2025 · 1 min

Watch on YouTube

1:06

This short YouTube talk by Jim Penman explains how to franchise a business. Penman stresses you must start with a profitable, proven business and then create a fair, franchisee-friendly contract and system. Key recommendations: use modest purchase prices and rely on ongoing fees (he reports average fees of about 6% of turnover), select franchisees carefully, provide continuous, proactive support and regular meetings, cultivate service-oriented culture, invest in technology, and offer open access (he gives his direct contact details). He also offers a six-day training course in Australia that outsiders may attend at minimal cost.

Questions this video answers

About 6% of turnover.

Five and a half thousand franchisees.

A six-day training course in Australia.

Chapters

Want to franchise that business? Here's how. Start with a successful business that's making you a heap of money. If you don't have that, you have nothing to franchise. Devise a contract and a system that is fair, something you might want to sign as a franchisee. Give your franchisees real protection and real rights. Don't be greedy. Your key income should be from ongoing fees, not payments upfront. Our fees average only about 6% of turnover and our purchase prices are modest. Pick your franchisees carefully. Never take cash from someone you think might fail. No matter how much you need the money, work tirelessly to give support. Contact your people regularly. Don't just wait for them to contact you. Regular meetings are great for morale and mutual support, as well as learning. Inspire your franchisees and your staff with the value of service and support. Successful franchise systems are as much about culture as about contracts. Invest in technology and continue to invest. Never lose touch with your franchisees. I give my direct email address and phone number to all of my five and a half thousand franchisees and I'm always available. I respond within hours, if not minutes, and frequently make changes to serve them better. Prospective franchisors and even competitors are welcome to attend our six day training course in Australia at minimal cost. You learn from us and we'll learn from you.