Here are the 29 most important questions everyone should ask BEFORE investing in a bookkeeping franchise…
Many people looking to buy a Jim’s Bookkeeping Franchise are not really sure of what questions they should be asking to determine if a Bookkeeping Franchise is right for them or if they are right for Jim’s Bookkeeping.
The following is a collection of the best questions we’ve been asked by the hundreds of people who successfully invested in one of our Bookkeeping Franchises… And we’ve provided answers from the Jim’s Bookkeeping point of view.
We trust they give you a good insight into owning and operating a Bookkeeping Franchise… And of course we also trust that the questions and answers help you understand if a Jim’s Bookkeeping Franchise is the right thing for you…
- What characteristics are you looking for from a potential franchisee?...
- Am I restricted to a Territory?...
- Do you get me the work and provide leads?...
- Do I need to have an Accounting qualification?...
- Are there ongoing fees?...
- Is it Full time or Part Time?...
- Where do I get the work from?...
- Do I have to have experience?...
- Can I sell the franchise as a business?...
- What training do you provide: Upfront/Ongoing.
- How long do most franchisees stay?...
- Why do Franchisees leave?...
- What competitors are there in the marketplace?...
- Can I put on employees?...
- What support can I expect?...
- What are the benefits of being part of a large group – like the Jim’s Group?...
- How long does a franchise last?...
- Do I need a car?...
- Do I need an office?...
- What experience will I need?...
- Do I need to be computer savvy?...
- Can I call and speak to current franchisees?...
- How much could I earn?...
- How much is a Franchise?...
- Do we guarantee earnings?...
- How big is a Franchise Territory?...
- Am I allowed to advertise?...
- Are magnetic signs suitable or do I have to get the car properly sign written?...
- If I want to sell the business does the Jim’s group re sell for me or do I have to use a broker?...
1. What characteristics are you looking for from a potential franchisee?...
Part of being involved with the Jim’s Bookkeeping Division means that you have strong morals and ethics. Our core values are Honesty, Integrity and Trust. We expect that our franchisees have High Standards and are Trustworthy. The franchisee is expected to be Accurate in their work and to be a Self Starter. You must be Conscientious and be a Problem Solver. The ability to be a Good Listener, show Sincerity and be Persistent is very important. You must be Confident in your dealings with a client and be Patient.
2. Am I restricted to a Territory?...
No. You are able to accept work from anywhere as long as you do not actively canvas in another franchisees territory. In your territory you may use your mobile number to canvas for work BUT in all other territories you must use the 131 546 Jims number.
3. Do you get me the work and provide leads?...
As we are a business to business based Division, we are lucky to get 1 to 2 leads per month per franchisee. If an enquiry for a bookkeeping job comes through the call centre and it is in your territory then we will provide the lead to you. We are unable to provide work or leads on a consistent basis. However, the Jim’s Bookkeeping Brand will help you stand out from other bookkeepers and our strategic alliances and existing client base assists word of mouth marketing. Our main gift to you will be to teach you how to market yourself as a business owner to potential clients. Please remember that you are buying a business NOT a job.
4. Do I need to have an Accounting qualification?...
No it is not a requirement to have an accounting qualification. Experience as a Bookkeeper with a working knowledge of Quickbooks and MYOB is preferable. As Jim’s Bookkeeping have their own Learning Hub a Skills Analysis will be conducted to see where your strengths are and where the gaps in knowledge need to be filled. We help you gain Certificate IV Financial Services (Bookkeeping).
5. Are there ongoing fees?...
Yes there is a flat rate fee every month that will be explained to you by the Franchisor. Unlike other franchise organizations who charge a percentage of your turnover, the Jims system does not need to know what you are earning. You are free to earn as much or as little as you like as long as you pay the fee every month. As an added bonus if the fee is paid on time approximately 10% discount will be given on the fee structure. The franchisor will explain the breakout of the fee and how it is split up.
6. Is it Full time or Part Time?...
This is really up to you and your time commitments. As you are running your own business you are free to put in whatever hours you like. From our viewpoint we prefer the franchisee to be totally committed and treat the franchise as a business so that the rewards and lifestyle you seek can be achieved. As long as the fees and other agreed expenses are met we will never tell you how to run your franchise.
7. Where do I get the work from?...
This will depend upon your attitude towards running your own business. Your franchisor will work closely with you to find out your areas of interest and will be there to support and encourage you in marketing yourself to potential clients. As part of your signing on you will also be given assistance from the National Sales Director in finding your first five clients.
8. Do I have to have experience?...
Bookkeeping experience is preferred. More importantly an attitude of openness to learning and listening is extremely valuable. As part of the initial training a skills assessment of your bookkeeping skills and your personality profile will be done to see if you are suitable for a franchise.
9. Can I sell the franchise as a business?...
Yes you are allowed to sell the franchise as a business. In fact we have had a couple of instances where franchisees have built their territories up and either sold them as a split or sold the complete territory for a tidy capital gain. Your franchisor will explain how this works.
10. What training do you provide: Upfront/Ongoing.
Before we consider anyone for a franchise an assessment of their skills is done to see if they are suitable.
Initial Training:
Initial training is a four day Jims Orientation conducted by the Jims Group at their 26 acre Corporate and Conference facility located in Mooroolbark Victoria. You will be trained in the Jims way of doing things.
Upfront Training:
Following Orientation Training an assessment is conducted at our National office to establish your level of competency in bookkeeping as well as an assessment on your suitability to be a franchise owner. If you are assessed as suitable and you think that we are suitable for you, then you will be offered a franchise territory of your choice (subject to availability).
At a minimum we require our people to have a Certificate IV in Bookkeeping and a Certificate 3 in Business Management and we have systems in place to help you gain these while you operate your business.
Ongoing Training:
Jims Bookkeeping have their own Learning Hub which is a registered RTO. Any skill gaps will be encouraged to be fixed. Our bookkeepers are trained to a standard and not just a price. With the ongoing commitment from your franchisor you will be encouraged to maintain a high standard of competency so you can deliver high standards of bookkeeping.
11. How long do most franchisees stay?...
It depends. Some have been in the system 7 to 9 years others only a few short months. On average though the time frame is around 3 to 4 years.
12. Why do Franchisees leave?...
Some leave to pursue different paths while others have left because they were unable to make a go of the opportunity that was given to them. As part of our disclosure documents, you will be given the names of people who have been in the organization and we encourage you to do your due diligence and ask why they left.
13. What competitors are there in the marketplace?...
There are many independent bookkeepers in the marketplace and just as there are other bookkeeping businesses. We encourage you to do your due diligence and establish the competitors in your local marketplace. By far the biggest competitor is the 92% of business owners that do their own books (recent MYOB survey).
14. Can I put on employees?...
You certainly can. In fact this is something that we encourage so that you can build a large business. This provides the critical mass so you can either sell off a certain portion as a split or sell the lot and make a tidy capital gain and go on to buy a region and become a franchisor.
15. What support can I expect?...
The support that is provided to you primarily will come from your franchisor. You are also supported from the National office through the Divisional Franchisor and the National Sales Director. We have our own Learning Hub which is a registered training organization and we also have the support and wealth of knowledge of our fellow franchisee’s Australia wide.
16. What are the benefits of being part of a large group – like the Jim’s Group?...
The Jim’s franchising model is one of the most successful and longest running in Australia. The franchise model has evolved over 25 years so you get the benefit of many years of experience as know-how.
The whole Jim’s Group has approximately 2800 franchisees, mostly spread around Australia, with a few offshore. That means that there are the other hidden benefits such as the best mobile phone rates, fleet rates, personal insurance rates, the ability to cross sell your services to the other Jims franchisee divisions, exclusive franchisee support internet forums, annual conferences, group training, etc.
In addition to all the above, the Jim’s Logo is a nationally recognized Brand that ranks right up there with McDonalds, etc for brand recognition in Australia. That means that your business is instantly recognizable for almost everyone that sees it.
One of the other real benefits of being with the Jims franchise is the ongoing support that you receive. For many independent businesses it is very lonely at the top and they do not have any one to turn to in times of need. With us you are only a phone call (or VoiP connection) away from the help and support that you need.
In 2008 the Jim’s Group franchisee opportunity was voted by the Financial Review as the best value for money franchise under $50,000.00.
How does Jim’s Bookkeeping fit in the Jim’s Group?...
While most of the other Jim’s Divisions are home service type activities, some Divisions have significant operations in the business to business sector.
Jim’s Bookkeeping is clearly a business to business activity. But the kind of service we provide to businesses is very similar to the other service Divisions – we take non-core workload, often “chore or nuisance” activities off business owners and let them get on with whatever it is that they do best – often making more money!
We do of course benefit from the critical mass of being part of Australia’s largest franchise group and our association with the other Divisions provides us with a wide perspective of various business cultures and experiences.
What is your relationship with Jims Mowing?...
Jim’s Mowing were the first Division established within the Jim’s Group and is still the best known of the services. Jim’s Bookkeeping has been a Division of Jim’s Group since 1999. Some Bookkeeping franchisees have Jim’s Mowing clients.
How can Jim’s have so many areas of interest?...
The Jim’s model for franchising has proven itself to be a successful and entrepreneurial system to run a business. The Jims group are approached often by interested parties to become a division of the group and after careful analysis only the ones that fit the criteria set down by Jim are accepted into the group.
17. How long does a franchise last?...
A contract with Jim’s is for 10 years with the option of another 10 years. There are no out clauses so if you decide you want to get out before the 10 years is up you can either decide to surrender your business or sell it for whatever you can get for it from the marketplace. The sale price means that you keep 80% of the sale and the Jims Group get the other 20%. If you reach 10 years you can automatically roll over into another 10 year contract without an additional cost being incurred.
18. Do I need a car?...
The short answer is yes, as you will have to provide your own transport to get to your clients.
19. Do I need an office?...
It depends on the size that you would like to build your business and possibly the territory that you have. Initially there is no requirement for you to have an office as you can work from home and do work either at the client’s premises or yours. It is up to you how you handle the work and the arrangement that you come to with your customer.
20. What experience will I need?...
It is assumed that if you are enquiring about a Bookkeeping Franchise that you would have a working knowledge of MYOB and/or Quickbooks. It would also be preferable to have an understanding of the basics of running your own business and have an ability to prepare a cash flow forecast and a business plan. Our skills analysis will let us know what areas you have strengths in and what areas need to be looked at. It would also be expected that you have a desire to help a business owner make their business thrive.
21. Do I need to be computer savvy?...
You will need to have a sound knowledge of how a computer operates so that you can carry out the required functions of a Professional Bookkeeper.
22. Can I call and speak to current franchisees?...
We actively encourage you to contact any franchisee that is part of the Jim’s Bookkeeping network. We are required to give you all the names and contact numbers of every franchisee in the Disclosure document before sign up so that you can do proper due diligence.
23. How much could I earn?...
This really is up to you to decide and it also depends upon the endeavors that you commit to making your business thrive. We provide on going support to help you but it is always up to you to maximize the best possible return for your investment.
Your franchisor is there to help as a business mentor and guide. Past experience and results show some franchisees who choose their customers wisely can earn over six figures in a financial year. Conversely there have been some that have struggled to make a sustainable living due to their limiting self beliefs and the way they have valued themselves in the marketplace.
24. How much is a Franchise?...
The current investment for a Jim’s Bookkeeping franchise is $39,000.00. We know that some of you may be thinking that is a lot BUT the astute person will do their research and establish what they are getting for this investment. We also consider applications from people who intend to borrow a percentage of the funds required to purchase and establish a franchise providing that your business plan shows that you can service the debt. Of course we expect that you will have had your accountant or other financial advisor confirm your business plan is viable.
25. Do we guarantee earnings?...
In short the answer is, no. We do however have a small work availability guarantee that is made available in the first few months of your franchise. But why would you choose to plan or position yourself as accessing that?
If you do find yourself looking earnestly for a robust earnings guarantee we would politely suggest that you should do more research and investigation in to the viability of your investing in a franchise. We cannot emphasize strongly enough that you are investing in a business when you invest in a franchise and you should leave no stone unturned in your research, investigations and business planning to determine if franchising is a wise course of action for you at this time…
26. How big is a Franchise Territory?...
Your franchise is based approximately 1000 small to medium sized businesses.
27. Am I allowed to advertise?...
You are allowed to do any form of appropriate advertising that you see fit. Part of your monthly fees are allocated to an advertising fund by your franchisor which is then allocated to specific advertising. If you want to do separate marketing and advertising then that is ok as long as head office approves the layout and design.
28. Are magnetic signs suitable or do I have to get the car properly sign written?...
Magnetic signs are not acceptable and the Jim’s Bookkeeping division has guidelines as to the appropriate branding required for all motor vehicles. Please remember that this is your business and a well branded motor vehicle is a valuable tool in helping you attract appropriate customers.
29. If I want to sell the business does the Jim’s group re sell for me or do I have to use a broker?...
As it is your business, you can sell the franchise territory by whatever means you want. Jim’s Bookkeeping National office will talk with you and make suggestions that are appropriate to help facilitate the speedy sale of your business.
Give us a call on 0412 764 555 (Terry) or 0434 180 161 (Glenda), or send through your questions via email.
Kind regards,
Terry and Glenda Shand
Well, thanks for reading through these great questions. Of course we’d be surprised if you didn’t have a whole heap MORE questions now. At Jim’s we work with a “total transparency policy” which means we’d love to discuss and answer ANY questions or queries that you have … no matter how small or large.
