Prospective franchisees looking to join the Jim’s Group network could receive start-up loans as part of the company’s growth strategy, with founder Jim Penman seeking a pre-IPO backer.

It’s been announced Penman, who franchised Jim’s Group in 1989, is seeking a pre-IPO backer or backers willing to invest around $10 million into the service franchise company.

The ultimate aim of the plan is being able to provide start-up loans to franchisees because, according to Penman, the network loses “hundreds of sales a year” because the banks refuse to lend money to new franchisees.

“One of the main reasons for the float is to be able to offer vendor finance to franchisees. There is actually a huge demand for franchises,” Penman says. Read more.