'Zero progress': Swim schools say they have been left high and dry by franchisor Jump!

Juliet Sharpe is a swimming teacher who always dreamed of owning her own business and thought buying into a Jump! Swim Schools franchise was the way to do it.

However, despite paying $165,000 for a franchise two years ago plus more than $100,000 in rent, she is still no closer to opening her swim school.

"There has been zero progress," Ms Sharpe said.

Juliet Sharpe is a franchisee with Jump! Swim Schools.Credit: Steven Siewert

Ms Sharpe is not the only franchisee affected but Jump! denies any wrongdoing.

60 swimming schools

Jump! operates more than 60 swimming school franchises around Australia and has operations in New Zealand, Brazil and Singapore.

Jump! claims to have received $15 million in revenue for swimming lessons across its swimming schools in 2018 and claims Jump!'s headquarters turned over $9 million with the average turnover of Jump! swimming schools $3.49 million.

Its website offers new franchises for sale and offers "turn-key fit out" which includes the construction of an above ground pool for $180,000 including GST.

The franchise is operated through the company Swim Loops, which is owned by Ian Campbell, the founder of Jump!

Mr Campbell was awarded Australian emerging franchisor of the year in 2016 at the Franchise Council of Australia awards.

Jump! founder Ian Campbell was awarded Australian emerging franchisor of the year in 2016. Credit: AHC Photography

However, many franchisees of Jump! say they have paid franchise fees to Jump! but still don't have a swim school.

Delays

Ms Sharpe taught swimming for more than 20 years but said the last few years have been focused on trying to open a Jump! swim school.

"Here I still am with two years of 'is this opening or isn't it opening?'," she said.

Ms Sharpe says Jump! claimed the building was delayed and said there was trouble with the certification until she engaged a lawyer.

"My lawyer said 'Pay the money back or build the swim school'," she said. "[Jump!] said they could return the options only if they have another buyer. They've got our money and it looks like they are not going to build it unless I take them to court. It's not what I signed up for I can tell you that."

Bamboozled

Another franchisee, who did not want to be identified, said he also has not received the swim school he paid Jump! for.

The franchisee signed up after seeing an advertisement on Facebook.

"I looked at the contract and on paper it looked really good," he said. "Once you get involved the way the contract was drawn up was all in their favour and you had to pay all the money up front."

However the franchisee says there were structural issues with the premises selected for the swim school and so a different premises was selected but the development application was rejected for the premises.

"They bamboozle you with everything but once they have all the money there is no way out," he said. "There are no time frames on the contracts. You are sort of locked in."

In the end the franchisee managed to get out of his contract with Jump! but he said "it was many tens of thousands of dollars down the tube".

Jump! is embroiled in several legal disputes. Credit: Newsday

Legal disputes

Jump! is embroiled in several legal proceedings with franchisees.

Franchisee Shaun Trumbull has brought proceedings in the District Court of NSW against Swim Loops (trading as Jump!)

Mr Trumbull claims he paid more than $154,000 in fees to Jump! to establish two swim schools on Sydney's Northern Beaches.

Mr Trumbull claims Jump! engaged in misleading and deceptive conduct and repudiated its contract with him by requiring payments when the swimming schools were not in existence.

The case is still on foot and Mr Trumbull declined to comment.

In April, Victorian Supreme Court Justice John Digby found in favour of franchisees Todd and Jenelle Delahunt in proceedings brought against Swim Loops (trading as Jump!).

The court heard the Delahunts paid $138,000 to Jump! upon opening the swimming school which they financed through a loan secured over their family home.

However Jump! took possession of the Delahunt's swim school in Reservoir over a dispute over $30,753.

Justice Digby granted an injunction compelling Jump! to relinquish possession and operation of the swimming school.

'High level of regulation'

A spokesperson for Jump! would not comment on how many legal disputes Jump! is contesting.

The spokesperson said over the past six months it has handed over 12 new Jump! franchises to operators.

"Unfortunately, there is a high level of regulation involved in opening a swim school that requires approval from multiple third parties and can be subject to a range of approvals and refusals," the spokesperson said.

"Jump! Swim Schools has little control over the time frames to opening due to these third parties including local councils, private certifiers, health departments as well as a needing the landlord to consent to the building being held vacant whilst we await all the necessary approvals."

The spokesperson said Jump! attempted to support franchisees by providing financial assistance should landlords require rental payments prior to approvals.

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