Worker leaks sensitive info on popular chain
An insider from a popular Australian chain has leaked internal emails and a state government inspection report.
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Leaked documents from one of Australia’s most well known chains have revealed there was a potential breach of the state’s environmental protection regulations last year and an insider claimed it would have a chilling impact on its business owners.
News.com.au has obtained a report from the Victorian Environmental Protection Agency (EPA) which visited Jim’s Group — Australia’s largest franchising outfit that is best known for its lawn mowing division.
Overall, Jim’s Group has more than 5000 franchisees across 52 divisions and a turnover of approximately $500 million.
Specifically, the EPA inspected and audited Jims Dog Wash’s training facility, which is located in the Melbourne suburb of Mooroolbark, in July last year.
During the inspection, the EPA wa told that standard operating procedures for discharging wastewater is to “divert” it “onto a customer’s garden area” and that chemicals used in the process of washing dogs was biodegradable.
However, the EPA noted that while biodegradable chemicals could be broken down in the sewer system, “it did not make them suitable to be disposed” in soil. The EPA found that Jim’s Group needed to implement changes to ensure its waste was disposed of appropriately. The inspection report also noted the EPA may investigate potential breaches of the Environment Protection Act 2017 which could result in a sanction.
Now a Jim’s insider is speaking out, saying they want to “shine a spotlight” on the company’s practices.
The insider claims there is no way for Jim’s Dog Wash franchisees to comply with the safe disposal of wastewater. Instead, they will ultimately get fined and could even lose their livelihood, he claimed.
The EPA states that trailers must be able to either empty into the customer’s sewer or be able to remove the waste water from the property – but the trailer is not able to do either, he claimed. The claims were denied by Jim’s Group.
“Most trailers run their waste into the gutters and therefore storm water, which is against all regulations,” he claimed.
“Jim’s hasn’t changed the trailers, they just changed the manual. The manual is enforceable and franchisees can be breached and terminated for not complying with it. Technically, every franchisee is in breach.
“[The company] owns the trailers, supplies the trailers and makes franchisees only use those trailers … and there’s nothing that can be done to modify them.”
The insider said Jim’s Dog Wash also changed the dog wash manuals without putting it out for franchisee vote, in breach of their own agreements.
Do you have a story? Contact sarah.sharples@news.com.au
Jim’s Group founder Jim Penman said the changes had been “incorrectly implemented and should have been put to a referendum”. He blamed a person previously involved in the business for the failure to consult franchisees. But he added franchisees had all been informed of the changes and the equipment they needed to buy to ensure compliance.
“In February 2024 Jim’s Group head office requested all divisional franchisors to make a change to the division manuals that allowed changes to the manuals as required to comply with the law,” he noted.
However, he added that at all times and even before these changes, the manual was clear that on no account was wastewater to drain into open drains and Jim’s Group franchise agreements have always required franchisees to operate lawfully.
The Jim’s Group Dog Wash division has 266 dog wash franchisees, with 66 based in Victoria.
Leaked email
In a leaked email from Jim’s Group to the EPA in July, it revealed key amendments had been made to Jim’s Dog Wash Confidential Operations Manual just 15 days after the EPA inspection.
These included not discharging wastewater into stormwater drains or onto grassed areas and directing wastewater to the sewerage system, provided there was client’s consent.
Other changes included implementing preventive measures to minimise incidental discharges, for example, identifying stormwater entry points at each job and avoiding operating near them and maintaining equipment to reduce risk of leaks.
Mr Penman said the Jim’s Group Dog Wash Division Manual previously required franchisees to put wash water onto the grass or down the sewerage system.
“It was never permitted to discharge into the storm water,” he added.
In July 2023 the EPA informed the Jim’s Group Dog Wash Division that waste needed to be put into the sewage system or, if not possible, to be stored and brought home, he noted.
“To make this happen, each trailer needed an extended hose and a message was sent to franchisees requiring them to obtain the hose, while the manual was changed to comply with the law,” he said.
The divisional rights for the dog wash franchise were also bought back into Jim’s Group on 1 August this year, he added.
“At that time, Jim’s Group head office informed Dog Wash Division franchisees where they could purchase the correct extendible hoses and the correct process to dispose of wastewater compliantly,” Mr Penman said.
The Jim’s Group is constantly evolving and investing in new technology and systems to enhance their business practices and commitment to sustainability, he noted.
“The Jim’s Group will launch a new dog wash trailer over the coming weeks which will be one of the most advanced and environmentally friendly in the industry designed to sit at the forefront of sustainable dog washing practices and provide franchisees and puppy dogs with a safe, comfortable and enjoyable dog washing experience,” he said.
Since buying back the Dog Wash Division, the Jim’s Group has commenced development of a strategy to strengthen and expand support for franchisees to help the division grow into a world-class dog wash business, Mr Penman added, with previous issues being addressed and resolved to assist the business to flourish and succeed.
Potential penalties are significant
EPA Victoria said the government body became aware of a potential issue with discharge of industrial wash water after an EPA officer saw a Jim’s Dog Wash mobile unit discharging industrial wash water, a spokesperson said.
“Only rain water should go into stormwater drains. Wash waters from mobile wash services should be collected and discharged to the sewerage system,” they said.
EPA spoke directly to Jim’s Group who have since clarified wash water disposal procedures in their franchisee handbook, they added.
“EPA expects Jim’s Group to work with their franchisees to enable discharge to sewer,” they said.
“However, if there are more reports of non-compliant wash water disposal, EPA could investigate further under its compliance and enforcement policy and under the general environmental duty (GED) of the EP Act 2017 which makes it everyone’s business to protect the environment. Potential penalties under the GED are significant for individuals and businesses.”
The waste water issues come at a time when a bitter dispute has erupted from Jim’s Dog Wash franchisees over ownership of the dog trailers amid claims they have missed out on thousands of dollars as they stumped up $25,000 for a trailer they will never own.
Founder Jim Penman said the change to ownership was necessary because many franchisees were stripping off their signs and going independent, taking their customers with them as well as the use of intellectual property, including trailer design.
Meanwhile, other franchisees spoke about the “painful” reality of how little money they made, while others have criticised other aspects of their franchise agreement.
sarah.sharples@news.com.au
Originally published as Worker leaks sensitive info on popular chain
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