7-Eleven has taken back a number of franchises to run as corporate stores. Picture: A Current Affair/Nine
A self-made Aussie multimillionaire has offered to rescue stranded 7-Eleven franchisees who lost millions in minutes after their stores were taken back by the franchisor.
The founder of the largest franchise chain in the Southern Hemisphere, Jim’s Group, Jim Penman said he could not stand to watch hardworking Aussies lose their homes, savings and futures while governments do nothing to help.
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Javid Ahmadi said he was walking away with nothing. Picture: A Current Affair/Nine
His offer comes after a wave of heartbreaking scenes played out at 7-Eleven stores across Sydney last month, when franchisees who had poured more than $1 million each into their businesses were escorted out the door by head office representatives – walking away with nothing after a decade of work.
Javid Ahmadi, who invested more than $1 million into a 7-Eleven franchise in Sutherland a decade ago, was among those forced out, unceremoniously booted from his store at 6am by head office reps in hi-vis as a television crew watched on.
“This is the biggest mistake I’ve ever made … putting in a million dollars and walking away with nothing,” Mr Ahmadi told A Current Affair. “You tell me if this is fair.”
Prior to the takeover, Mr Ahmadi had erected a sign at the entrance of his store pleading for public support, news,com.au reported.
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Jim Penman owner of Jim’s Mowing. Picture: Jason Edwards
Mr Penman felt obliged to step up, saying Friday “if you’ve been left financially devastated, I want to help”.
“If your franchisor has abandoned you, Jim’s Group won’t,” he said. “This isn’t a publicity stunt. It’s about helping good people who have worked incredibly hard only to find themselves in a situation they never imagined.”
“These aren’t faceless corporations. They are mums and dads. They’ve mortgaged their homes, emptied their super and worked seven days a week.”
Under the Jim’s Mowing initiative, any 7-Eleven franchisee who feels unfairly impacted by the actions of 7-Eleven Australia and its parent company, 7-Eleven International, would be offered a Jim’s Group franchise at no cost – with Jim’s Group covering all franchise fees and establishment costs.
Franchisees would need to provide their own tools, equipment and vehicle where required, and would be free to choose from more than 50 Jim’s divisions, ranging from lawn mowing and dog washing to a range of trade and home services.
Jim’s Group was founded by Penman in 1989 and today has about 5,700 franchisees operating across more than 50 divisions, making it the largest franchise chain in the Southern Hemisphere.
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Mr Ahmadi paid more than $1 million for the store. Picture: Javid Ahmadi/Facebook
Mr Penman was scathing of the Albanese government and various state governments who collect taxes from franchisees while failing to protect them when things go wrong.
“Governments are always there with their hand out when it’s time to collect GST, company tax, payroll tax and income tax,” he said. “But when franchisees lose their businesses, lose their homes and lose everything they’ve spent years building, they’re nowhere to be found.”
Mr Penman called on the federal government to establish an independent annual Australian Franchisee Feedback Survey and a publicly accessible National Franchise Transparency Register – funded by franchisors through a transparency levy, not by taxpayers.
“If Australians can read reviews before spending $200 on a hotel room, surely they deserve independent reviews before investing their life savings into a franchise,” he said.
He also called for public disclosure of how much political funding has come from franchisors, their related entities and family members over the years.
“Australians deserve confidence that public policy is being made in the interests of small business owners, not political donors,” he said.
Affected 7-Eleven franchisees were encouraged to contact Jim’s Group directly.
7-Eleven franchisee Javid Ahmadi had his Sutherland store taken back. Picture: A Current Affair/Nine