Sylvia Penman, the 22-year-old daughter of Jim’s Group founder Jim Penman, has launched her own venture, Jim’s Removals.
This new division extends the ubiquitous Jim’s brand into the removals sector. However, it will operate as single company with local managers, not as a franchise.
“There were a few reasons why we decided not to franchise Jim’s Removals and Storage,” Sylvia Penman told Franchise Executives.
“I have worked in the industry for a number of years gaining experience in removals and I have also worked within the Jim’s Group as well.
“Moving is a tricky business where a lot can go wrong. To deliver the best service possible, we wanted to implement tight regulations and oversee every job directly. This allows us to reduce the risk of damage and ensure all our employees meet the high standards we’ve set.
“This level of oversight could be challenging for business-minded franchisees, who might feel micromanaged or restricted,” she said.
Penman added the challenges of finding franchisees was another deterrent to operating the removals and storage business as a franchise.
“The biggest hindrance for growth at Jim’s Group is simply finding franchisees. In our industry, the work is already quite physically demanding, sometimes requiring up to 12-hour days.”
Penman said despite the good profit margins the set-up and operating costs (purchasing a truck, paying employees and managing insurance) made it a less appealing offer as a franchise.
“Jim’s Group franchisees must adhere to extremely strict standards,” she said. “All damages must be addressed and reimbursed or repaired, and workers need to be well compensated to ensure great service. If high quality customer service standards aren’t met, you’d be at risk of being breached.”
Operational flexibility and the ability to reinvest profits directly into the company to fuel growth were also attractions to operating the business under a management structure.
“That being said, we haven’t completely ruled out franchising in the future. While we plan to keep central management in key cities like Sydney and Brisbane, franchising in other states is something we’re open to exploring down the line,” Penman said.
