Franchising continues to grow during tough times

Evidence shows franchising has extraordinary opportunities for family businesses, enabling them to grow into multi-million dollar assets. According to a recent PriceWaterhouseCoopers report franchises have seen average annual revenue growth of 10%.

The report states:

‘The results of the 2012 Franchise Sector Indicator again back up the premise that franchising as a business model, through the support that franchisors provide franchisees, the proven success of the franchisor’s processes and business model; and the increased leverage that franchisee numbers provide in terms of marketing and buying power, generally result in better financial returns.’

But this is not a new phenomenon – one well-known beneficiary I worked with, Jim Penman from Jim’s Mowing, started by mowing lawns himself until he became so busy he put on employees. But that didn’t work because he then spent his time checking the work was done properly.

Jim chose to franchise – he chose franchisees who took pride in their work and his quality control issue was solved. As Jim no longer worried about the lawns, and was being paid by his franchisees to get the marketing and other franchisor work done, he was able to expand the franchise group indefinitely, making the money he needed to free himself up to do other more important things in his life.

Jim had solved his riddle and was able to:

  • Make the money he wanted
  • Get good well-trained staff and systems
  • Become more effective – allowing more time for himself

The key to Jim’s success was three-fold:

  • He kept everything very simple
  • He did all the marketing and quoting for his franchisees (he worked ON the business)
  • So his franchisees just cut the grass (they worked IN the business)

Jim’s approach reflects exactly the findings for success in good and not so good times from Price Waterhouse. Support your frachisees, give them good systems and build on the leverage created by having so many well run outlets.

Jim’s Group has been built up over many years – good and bad- and today Jim has over 30 franchise systems with more than 3,200 franchisees.

If Jim can do that as a Uni student with no business background, what can you do with your business?

Brian runs a 2-day information-packed workshop ‘How you can transform your family-sized business into a multi-million dollar asset through franchising’ on the Gold Coast monthly.  More information is available at Franchise Simply  or email Brian on

brian@howtofranchisesimply.com.au or call on 1300 960 136 

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