Jim's Book

14 Revolt in the Ranks

From 2004 to 2009 eight new divisions started, with three — Earthworks, Windscreens and Graffiti Solutions — no longer operating today. The five still running are Bin Cleaning, Financial Services (formally Finance Professionals), Plumbing, Resurfacing (formerly Bath Resurfacing) and Skip Bins. By 2009 there were 2500 franchisees in the Jim's Group, a mammoth achievement. Jim's was much larger than any of its competitors, but discontent was rising.

Most franchise systems don't have the layer of franchisor or divisional; there is only the corporate office. In these systems the horror stories of franchisees being mistreated are prolific.

Jim lets many things be decided by vote that in other systems would simply be imposed, which is perhaps one reason the Jim's Group has a remarkably low rate of litigation. But it does not mean there are no conflicts or disputes. Regional and divisional franchises can have a significant value, in the hundreds of thousands and even millions of dollars, which gives franchisors and divisionals a vested interest in every decision. And some decisions, especially those involved with service issues, are not subject to vote.

Franchisor frustrations

Jim has the power to ‘breach' (give warning that a problem must be resolved) or terminate a divisional, franchisor or franchisee. If he terminates a franchisor or divisional their business is normally put up for sale for six months, and if there are no buyers Jim will often buy it himself. ...