From: Sharples, Sarah <sarah.sharples@news.com.au>
Sent: 02 October 2024 12:53
To: Jim Penman
Subject: Story on Jim’s Construction and pay for work guarantee for divisions
Hi Jim,
I’m writing a story on the dispute with Jim’s Construction division in Victoria. I also have some follow up questions regarding some other divisions.My deadline for a response is Thursday, 3 October at 1pm.
My questions are as follows:
What’s Jim’s Groups response to claims it is facing a massive dispute with the Jim’s Construction division particularly with Morris Terzo, who is a franchisor and franchisee?
What’s the response to claims that Jim’s Construction leads are incorrectly going to Jim’s Handyman, particularly as people in the Handyman division are not licensed builders? That sending leads to Jim’s Handyman is in breach of the franchise agreement?
What’s the response to claims Jim’s Group is also selling leads externally through Biazza when they should go to Jim’s Construction?
What is your response that statements that Jim’s Construction work only relates to new builds is misleading when the Building Act defines construction as additions, alterations and renovations as well? The website also makes reference to Handyman doing “home renovations and modifications” – what’s the response to claims this is misleading? That references to ”maintenance work including painting, carpentry, and pergolas” for the Handyman division is inappropriate as franchisees don’t hold the appropriate licence?
Why does the website reference Jim’s Handyman, Jim’s Building Maintenance and Jim’s Building and Maintenance?
Why were the marketing notes for Jim’s Construction changed back after Mr Terzo had them changed through the call centre? Why is everything but new construction directed elsewhere by the call centre? Why were inquiries sent externally when made by the franchisee and Mr Terzo?
How much on average are the Jim’s Construction jobs worth? Is it $500,000?
Will Jim’s Group engage with the mediation with the small business ombudsman? What is Jim’s Group response to the $2.9 m claim made?
Is the Jim’s Construction dispute likely to cause issues in Jim’s Handyman as they could lose leads?
What’s the response to claims that all divisions loathe Biazza?
What’s the response to claims that attempts to resolve the Jim’s Construction dispute has been met by “general evasive and dismissive tone of recent communications from Jim’s Group”?
Other divisions – cleaning, mobile mechanics and laundry
What’s the response to claims franchisees were left with nothing after outright buying a franchise?
What’s the response to claims the lead system doesn’t work and doesn’t lead to many jobs? That Jim’s Group claims it’s rare for people to come into the system and go without booking a job – but this is disputed?
What’s the response to claims that the pay for work guarantee is impossible to get? That there are too many onerous conditions attached to make it possible to qualify? Eg. working at least five days a week for eight hours and providing 22 customers with a free wash in laundry
What’s the response to claims people can’t make enough money to even cover the Jim’s Group fees?
Why are franchisees blamed if a business is failing for example being told they didn’t have enough training, should work at night, their quotes are too expensive or they are not travelling far enough?
Regards,
Sarah
From: Jim Penman
Sent: 02 October 2024 15:41
To: Sharples, Sarah <sarah.sharples@news.com.au>
Subject: Re: Story on Jim’s Construction and pay for work guarantee for divisions
Hardly a massive dispute, Sarah. There are three people involved: a Franchisor and two franchisees. That is the entire Constructions division. The franchisees haven’t a clue what’s going on and are not even asking for work. They’ve simply been dragged in by Morris, the franchisor.
Handyman services involve a wide range of services, the great majority of which are much below the $10,000 cost that would require a licensed builder in Victoria. We, of course, do not know how much a job will cost when we send it out. We simply require franchisees who are not licensed builders to reject any job that they are not licensed to do. If they took it on and we found out, they could be breached and even terminated. But some of them, of course, are licensed builders and can legally take on such jobs.
To give you an idea, I’ve appended at the bottom of this Email a list of serviced handyman leads so far this year in Victoria. Below that is a list of unserviced leads, which you can see is rather more. Total is around 4,000 leads.
Franchisees who are qualified can take leads from other divisions. You can see at the bottom of the email a summary of handyman leads taken by the Construction franchisees: 26 in all. These were all taken by Morris, and amount to just over 1% of the unserviced handyman leads in Victoria. The other two franchisees do not take any handyman leads, and in fact are not even taking construction leads at present. We sell leads to independent contractors but ONLY those that no franchisee wants, including franchisees from other divisions.
Morris is making an argument that any sort of handyman work that builds anything is ‘construction’, regardless of value. We consider construction to be something like a new home or home extension or granny flat, all of which go to the construction division, as you can see from the list of jobs actually taken. I hardly think painting or repairing a wall would meet most people’s idea of ‘construction’. Morris changed the call center notes to reflect this idiotic idea. We changed them back.
We’ll go to mediation, as required under the Code, but it’s a ridiculous claim and no handyman franchisee will lose any work. Our response can be regarded as ‘dismissive’ but hardly ‘evasive’. We’ve told him exactly what we think and what the law will say.
Jim’s Handyman and Jim’s Building Maintenance are alternative names given to the division. The franchisees at one time asked to change the name from Handyman to Building Maintenance, and then later asked to have it changed back. It’s got to do with the kinds of leads each name suggests.
I have no idea how much Construction jobs are worth. Morris is the only one who takes them. You’ll need to ask him.
Bizza is the system that sells unwanted leads to independent operators, with the agreement that ALL profits go back to franchisees. We’ve spent it so far on such bonuses as free tickets to the football, $1,000 TV’s provided for $250, boosted advertising, etc. etc. This year we’ll likely give out close to a million dollars in benefits. So far as franchisees are aware of the system, they love it.
The rest of it we’ve already given responses at length, and I’ve shown you the responses to surveys, both internal and done by an independent polling company. The great majority of people who buy a franchise succeed. A minority fail. That’s the case for any business, except that far less fail than if they went in as independents or with any rival organisation.
Jim
From: Sharples, Sarah <sarah.sharples@news.com.au>
Sent: 04 October 2024 09:55
To: Jim Penman
Subject: Re: Story on Jim’s Construction and pay for work guarantee for divisions
Hi Jim,
Coming back to you on this one as there have been allegations that you called one of the Jim’s Constructions franchisees and were “intimidating”. As a result he has terminated his franchise as a result of your conduct causing stress and anxiety – according to the claims.
There are also claims that your actions are deplorable and as mentioned are putting all franchisees/franchisors under duress and stress. The claims continue that this is not the behaviour of a leader but of a dictator. There are also claims that you think you are above the law.
Do you have a response to the claims?
Regards,
Sarah
From: Jim Penman
Sent: 04 October 2024 10:37
To: Sharples, Sarah <sarah.sharples@news.com.au>
Subject: Re: Story on Jim’s Construction and pay for work guarantee for divisions
This obviously came from Morris, the franchisor, rather than Steve.
I rang Steve, who told me the only reason he’d joined the action was that we were supposedly stopping him from getting Handyman leads. I explained to him that the only reason he was not getting handyman leads was that Morris had not put him down for them, and that we would be very happy for him to take them. At present he’s not taking leads at all, not even construction leads, because he’s too busy. He offered to drop the action.
I’ve attached a summary of work requirements for each franchisee. As you can see, the only franchisee even taking handyman leads is Morris, and that’s because I myself put him down for them
I’ve copied Steve and Arpan (the other franchisee) to this Email, though they likely won’t want you to quote them to avoid upsetting Morris.
Jim
Supporting Documents