Jim’s Group founder Jim Penman to fight British lawsuit

Jim’s Group founder Jim Penman says he will vigorously defend a $5 million lawsuit from a former British franchisee, who claims Penman forced him out of the position as the head of Jim Group’s British operation.

Paul Carr, Jim Group’s former British master franchisee, has lodged a statement of claim in the High Court in London against Penman, Jim’s Group and two other business associates of Penman, over his removal last year.

But Penman told SmartCompany this morning he will defend the claim and launch legal action of his own.

“We’ll show that we had cause to terminate him and we’ll counter sue for the damage he has done to the business. “

Penman claims Carr was terminated after British franchisees complained he was not providing them with adequate support.

Penman says after terminating Carr he offered to sell his master franchise and pay Carr the proceeds, which Penman estimates would have been a “couple of hundred thousand based on Australian standards”.

However, Carr rejected this offer and is proceeding with legal action.

But in another twist to the bitter spat, Penman says a group of angry former British franchisees who lost their businesses during Carr’s time in charge are planning to launch a class action against Carr.

Penman says four franchisees have signed up to the class action, which he is supporting. He says a win in that case is more important to him than in his own case with Carr.
“That would be the bigger satisfaction. These guys lost their business and I feel horrible about that.”

Penman, whose group has more than 3,000 franchisees in Australia, New Zealand, Britain and Canada, says he is taking the case in his stride as admits at least some of his closest associates are hoping it goes ahead.

“My family is looking forward to a trip to England so they are cheering for the case to go ahead.”