The Government takes billions from franchisees, then abandons them: Jim Penman's explosive challenge to Anthony Albanese

One of Australia's most outspoken business leaders has launched a scathing attack on the Federal Government, accusing it of happily collecting billions in taxes from hardworking franchisees while failing to provide even the most basic protections against rogue franchisors.
 

Jim's Group founder Jim Penman said the latest allegations surrounding 7-Eleven franchisees should serve as a national wake-up call, describing the current Franchising Code as 'worse than useless' and calling on Prime Minister Anthony Albanese to spend a day working as a franchisee before claiming the system works.
 

"The Government is always first in line when it's time to collect tax from small business. It has just changed the capital gains tax rules for many business owners, meaning countless franchisees now fear they'll hand over even more of the wealth they've spent a lifetime creating," Penman said.
 

"They collect GST, income tax, payroll tax and company tax, then take another bite when people sell. But when franchisees are left financially devastated by unfair franchising practices, the Government disappears. It wants the revenue, but it refuses to provide meaningful protection.
 

"That is disgusting, it is despicable and it is a complete failure of government."
 

Millions invested yet no protection
 

Penman said Australians often invest hundreds of thousands, and in many cases more than a million dollars, to buy a franchise because they believe it offers a safer pathway into business ownership.
 

"They mortgage their homes, use their life savings and put everything on the line believing the Government has rules in place to protect them. They give up their holidays, family time and even work in ill-health, to keep their business going," Penman said.
 

"In far too many cases, they discover those protections are little more than an illusion."
 

He said recent allegations involving 7-Eleven demonstrate how vulnerable franchisees can be.
 

"If reports are accurate, franchisees can potentially lose their businesses while having little practical ability to recover their investment," Penman said.
 

"How can that possibly be considered fair?"

The Franchising Code is a failure
 

Penman said Australia's existing Franchising Code has become little more than an expensive paperwork exercise.
 

"The disclosure documents are hundreds of pages long, written by lawyers for lawyers."
 

"Almost nobody reads them."
 

"And those who do often don't understand what they're actually signing."
 

He said the system creates the appearance of protection while delivering very little.
 

"It adds thousands of dollars in compliance costs but fails to stop bad behaviour."
 

"That's not regulation. That's bureaucracy."
 

The Prime Minister should spend one day in a franchise.
 

Penman challenged the Prime Minister and senior ministers to experience life as a franchisee before making decisions about the industry.
 

"I challenge Anthony Albanese to spend one full day working in a franchise," Penman said.
 

"Open the doors at dawn, serve customers, pay staff, worry about rent, worry about electricity, worry about interest rates, worry about whether you'll still have a business next year."
 

"Walk in a franchisee's shoes before pretending you understand what small business owners actually deal with."
 

The simple solution government refuses to adopt
 

Penman said he has repeatedly presented governments with what he believes is a simple solution that would dramatically improve transparency across Australia's franchise sector.
 

He wants every franchisor to fund an independent annual survey of current and recently departed franchisees, with the results published publicly on a website for prospective buyers. Every person considering purchasing a franchise should be directed to the website to learn about the brand's survey results.
 

"Forget glossy brochures and marketing promises, ask the people who actually own the franchises," Penman said.
 

"Are they making money, would they recommend the business, have they been treated fairly. That information would expose bad franchisors overnight and save a lot of people from absolute heart- ache."
 

Lead by example
 

Penman said Jim's Group has already demonstrated the model works.

"We commissioned Australia's largest independent franchisee satisfaction survey because we believe prospective franchisees deserve to know the truth," Penman said.
 

"If we're prepared to be independently assessed, every franchisor should be. Reputable franchise groups have nothing to fear from greater transparency.
 

"The only people who would oppose independent reporting are those with something to hide."
 

Small business deserves better
 

Penman said franchisees represent thousands of Australia's hardest-working small business owners.
 

"They create jobs, they serve local communities, they pay taxes and they drive the economy. The very least they deserve is genuine legal protection."

Instead, Penman said governments continue introducing regulations that generate work for lawyers while doing little to improve outcomes for franchisees.
 

"We've created a system that protects paperwork better than it protects people," Penman said.
 

A call for urgent reform
 

"Stop pretending the current system works and stop congratulating yourselves on reforms that achieve almost nothing," Penman said.
 

"Stop taking taxes from hardworking franchisees while leaving them exposed. If governments genuinely care about small business, prove it. Give franchisees real protection and future franchisees honest information.
 

"Stop allowing multinational franchisors to treat Australian small business owners as disposable."

About Jim's Group
 

Jim's Group was founded by Jim Penman in 1989 and now has some 5,700 franchisees in more than 50 divisions. It is the largest franchise chain in the Southern Hemisphere.
 

A digital clone of Jim can be found at this site or at jimpenman.com.au, which is able to answer questions about the research project and Jim's Group. More information about Jim's Group can be found at: https://jims.net