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But there has been growing resentment from franchisors around Australia largely based around what they claim are unfair increases in the monthly fees they pay Jim's Group for each franchisee and changes to the company's operational manual which some franchisors claim constitute a breach of contract. Monthly fees were initially set to more than double, leaving franchisors claiming they could not on-sell their businesses.
Most franchisors have spent a minimum of several hundred thousands dollars to get into the business. Those who spoke to WAtoday.
Mr Penman said he would hold a "proper" referendum in the future, allowing franchisees to join master franchisees in voting. But another franchisor said allowing franchisees to vote in a referendum concerning Mr Penman was not permitted under the company's constitution. He knows full well he'd be voted out otherwise," he said. Mr Penman said his franchisors were putting their own interests ahead of their franchisees, in what was a "nasty business".
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