Jim Penman, the founder of Jim's Mowing, has criticized Australian politicians, including Prime Minister Anthony Albanese, for lacking an understanding of the challenges faced by small business franchisees. Penman, who is set to contest the Victorian election for the Libertarian Party, issued a direct challenge to the Prime Minister to spend a day working as a franchisee.
"You don't know the effects of what you're doing. You don't understand what a small franchisee actually is," Penman stated in an interview with The Daily Telegraph. He emphasized that franchisees often carry significant financial risk while earning modest incomes, leaving them vulnerable in disputes with larger franchisors.
Penman is advocating for a fundamental overhaul of Australia's franchising laws, arguing that current protections are insufficient. While the Albanese government has recently enhanced the Franchising Code of Conduct, Penman believes these reforms do not address the core issues. He proposes replacing the existing code with a public ratings system where franchisees can anonymously evaluate their franchisors. This, he suggests, would provide prospective operators with crucial insights before making investment decisions.
"Politicians, particularly on that (Labor) side of politics, do not understand small business at all," Penman said. He believes transparency and public scrutiny are more effective tools for improving franchisor behavior than additional regulation. Such a system, he argues, would expose underperforming franchisors and reward those who treat operators fairly.
Penman highlighted the prohibitive cost of legal action for many franchisees, noting that operators earning around $150,000 annually cannot afford extensive court battles. His concerns have been amplified by allegations from some 7-Eleven franchisees who claimed their agreements were not renewed as the company took back control of their stores. 7-Eleven has denied any wrongdoing, stating its operations adhere to franchise agreements and regulations.
Penman's decision to enter politics stems from his concerns about rising living costs, increasing regulation, and the overall business environment in Victoria. He is running for the seat of Northcote in the upcoming Victorian election. He contends that the current state government has created an increasingly difficult operating environment for businesses.