BUYER BEWARE. Read this before buying a Jumping J-Jays Castle
Franchise or a Stufflers Franchise.
Jumping J-Jays Castles and Stufflers are franchise systems owned and operated
by John Newton in Banyo, QLD, Australia..
You have probably come across this site as part of finding out a bit more a on
what these franchise systems are like. Good for you! Based on discussions I've
had with other franchisees, I think we would have all loved to find a site
providing a Jumping J-Jays Franchise review or a Stufflers Franchise review -
and it isn't all peaches and cream as John Newton would have you believe.
IF YOU ARE A PROSPECTIVE FRANCHISEE - IF YOU DO NOTHING ELSE,
PLEASE, PLEASE, PLEASE MAKE SURE YOU SPEAK TO AS MANY PAST AND PRESENT FRANCHISEES AS YOU CAN. YOU OWE
THIS TO YOURSELF AND YOUR FAMILY! I CANNOT STRESS ENOUGH HOW IMPORTANT THIS
IS! Do not rely on the couple of "hand picked" contacts he gives you
or what is written in the disclosure document (it is, of course, one sided -
his).
NEWS & BEMUSINGS
2/8/16
FLYING PIRATE SHIP IN KALGOORLIE WESTERN AUSTRALIA
Here's a timely reminder for inflatable operators for how quickly things can turn nasty. A few days ago at a Kalgoorlie race meet some strong winds came along and a large inflatable, which was presumably anchored, broke free. Luckily the operators (Jump 4 Us Party Hire) were paying attention and managed to get the kids off just in time before the castle took off. The green item on the roof is one of the blowers
How the castle broke free in this case is unclear, however, I've seen plenty of local jumping castle operators who use little more than tent pegs or a few kilos worth of iron plates to anchor a castle, or nothing at all(!). These operators should be shot. How on earth would this comply with the law, which says each anchored point needs to withstand 160kg of force?
If there is one thing Jumping J-Jays does right, its the use of some seriously heavy duty pegs - i'm talking 80cm of 3/4 inch steel driven into the ground @ 45 degrees with a sledgehammer. Plenty of franchisees will attest to how hard they are to get into (and out of) the ground in the middle of summer.
01/04/16
STOP PRESS - NO MORE JUMPING J-JAYS FRANCHISES?
No, this is not an april fools joke. As an ex franchisee, my brain is going into overdrive trying to get my head around this latest news..
Sometime in March 2016, the Jumping J-Jays website was updated to show that there are opportunities to become a Licensee. Gone is the material related to owning a franchise.
Wow. Just wow. I feel like this is a victory or sorts, in that no longer will families be trapped and suffering in the system. But i'm also agonising over "whats the catch"?
In any case, as an outsider I can think of a bunch of reasons for this change, some of which I am purely speculating:
-We know revenue has been in steady decline. It would be getting harder to justify the $45k+ pricetag for a franchise when the disclosure statement is showing pathetic performance.
-We know that John has offered "free" (as in no purchase fee, but you rented the equipment) franchises in the past. This appears to be somewhat simmilar. Big selling point of the "free franchise" is that by not having to stump up $45k in one go, it gives the appearance of lower risk and "pay as you earn", even though you end up paying the same amount of money over the term.
-We know that in the business world many companies are switching to a rent/lease/subscription model rather than outright buy. The advantage is that this gives you regular income and helps smooth out your cash flow, precisely what you want if your franchise sales are getting difficult.
-Franchise laws are tightening up, his dodgy practices might have started to finally come undone
-Maybe websites like this one swayed enough new franchisees away, that he was forced to make the change? *grin*. We can only hope.
The most amusing part is that for all the talk of what a superstar he is, and how successful the franchise is, it is now self proven to be just that - talk. Eventually, the chickens come home to roost.
23/3/16
John Newton fronts VCAT
Here is an article that I'm sure John Newton is gloating over. It is very sad to see that a franchisee in Mill Park had to resort to the legal system to try and stop John's shenanigans.
On face value the VCAT judgement reads poorly for the franchisee. Its quite long and touches some areas covered in a previous ACCC complaint. I can certainly see simmilarities from my time and others time in the franchise system, but it seems that the evidence was not strong enough and that enough of the law was on John's side, as always seems the case. So it is dissapointing to see that the damage to families will continue.
Regardless of what the law says, I think when you read and hear the same things over and again about franchisees and their dealings in this system, as I have, there can only be one logical conclusion - its probably true.
There is one positive out of this though. Other franchisees in similar situations of desperation have had threats they would have to pay hundreds of thousands of dollars in fees and lost royalties to exit the system. This judgement shows that John can't claim lost revenue based on what he "thinks" it should earn. Effectively, the Mill Park franchisee was able to walk away paying a measly (in comparison) $17k to get out.
I also know of at least one franchisee that simply argued and argued with John for months until John couldn't take it anymore, and he let them out for free.
So for those of you still trapped, I hope there is some comfort knowing that the scary numbers he throws around are complete bullshit and are an attempt to try get more money out of you. Don't buckle under the pressure!
19/03/16
Viva Las Vegas
Just found this photo of John and Monica. I don't know the date it was taken but given that John and Monica have been married for, I think, about 4-5 years I date this circa 2011, perhaps around the time when he was trying (and failed) to expand Jumping J-Jays into the US market.
A couple of things spring to mind. In the context of this photo and having the displeasure of getting to know John, it would not surprise me if some or all of this was claimed as a business expense.
Secondly, given so much of what he does comes out of China, I can't help but feel this might be a marriage of business convenience. I get the impression that without Monica as facilitator he would not be able to do what he does in China. There is even simmilarity in how they both don't give a rats about the customer and are more interested in chasing the dollar.
Interestingly this ties with my previous post on John using his effort in areas away from helping you and your franchise. I found the following page inside Business Franchise Australia Magazine where he is very clearly offering sourcing and manufacturing services in connection with China. Somehow I don't think he will be doing this work outside of business hours in his spare time.
05/02/16
Ebay Extracurricular Activities
John Newton would often boast how he imported a full container load of stuff from China into Australia every month. So naturally I thought "Castle business must be booming"?
So this could be true, but in another context. You see, it is not just Jumping castles, cheaply made bear skins and tacky marketing material he is importing like you are lead to believe. No, the container is also chock full of other crap not at all related to your franchise, at least some of which he is flogging on ebay. So how do I know? Well I've located some of these listings. Apart from the ebay item location being listed as Banyo QLD (same location as Jumping J-Jays and Stufflers office) his name and mobile phone number is very clearly in the listing. And lastly, he is selling this stuff using an ebay account in the name of his wife Monica to do this. I don't suppose this has anything to do with certain tax rules?
The ebay store can be found here. He sells all sorts of crap, from chicken feeders to plastic decking (why?!? Perhaps renovating his house at the expense of others?) and even tandem trailers. These particular trailers, despite having nothing to do with Jumping castle delivery, even feature the same serialisation as the shitty green corporate trailer he flogs to Jumping J-Jays franchisees. It is common knowledge within the system that John orders the corporate trailers in bulk from China and assembles them here, it seems highly likely these trailers are the same deal.
I am not suggesting he is not entitled to make money on the side by selling stuff on ebay. But it does beg the question - how are we to know, as franchisees, that the money we pay isn't subsidising these ventures in some way (e.g. freight, warehousing? Labor costs, internet expenses, etc.) John's frugality is well known and the only financial figures we get to see routinely is the marketing budget (wether you believe the figures is another story). But more importantly, for such a busy man where does he find the time to do this extra stuff on "company time", given that he is supposedly managing not one, but two franchise systems, and fired his Operations Manager?
04/01/16
Happy New Year, Unhappy New Year
Past and present franchisees know this time of year... its the time of year the annual Jumping J-Jays conference is being held. I wonder what excuses John Newton will conjure up this year.
Something I've discovered - the Jumping J-Jays website shows that customers can book "fun foods" online. I'd suggest there is activity underway in trying to push alternative sources of revenue, since castle revenue has been in a steady decline for a number of years. To me its not looking good and I wonder how much longer the organisation can stay afloat. Quite a pertinent time to think given the trouble the Dick Smith Electronics chain is currently in - this was a once successful company, you can argue on the merits of marketing and competition but in the end you cant just force customers to buy from you. Sometimes, I think you just have to be glad you had a good innings and call it a day.
Of course, one could speculate that if your business model is to sell franchises, then it probably matters little that your franchisees are struggling, its not your fault, right?
19/11/15
Too much of a good thing?
I've written elsewhere that for some franchisees, things can be successful. However, for everyone else, things aren't quite so peachy. It is sometimes quite easy to read between the lines and to that which is unspoken, I give the example at one particular conference I attended where an alarming number of franchisees were in the midst of winding up (by dliberately not renewing their agreement) or selling. No reasons as to why (publically, at least), but given my own circumstances it was very clear to me what was happening.
At face value, it almost seems comical. If you spend a few years of your time, effort, blood, sweat and god knows what else in building a business, why would you not renew your franchise agreement at the end of the term? Would it not make sense to renew it anyway, if only to sell it?
One thing that was very apparent is that these were franchisees who were unhappy. What exactly they were unhappy about we can only speculate but again, given my own circumstances it isn't difficult to come up with some possibilities.
Maybe, there was difficulty finding a buyer (or, *ahem*, sucker)?
Maybe, the franchisee felt it was not worth the further physical and/or emotional burdens, and wanted out?
Maybe, the franchisee did not wish to inflict this pain on the next franchisee?
Clearly, John Newton might say that these are franchisees who are having a change in circumstances, e.g. work or personal issues, want to buy some other business, etc. This may be true for certain franchisees but think about it - If the business was good, why would franchisees decide to walk away, effectively losing their investment?
13/3/15
Rosie Batty was (and supposedly still is) a Stufflers Franchise Owner
I've just discovered that Rosie Batty was a former Stufflers franchisee (screen shot 13/3/15). I can only imagine the lack of compassion John Newton would have had when Rosie asked to be released from her franchise contract, quite rightly given the extenuating and just plain awful personal circumstances forced upon her.
And yet, more than a year later, John Newton continues to keep her photo up on the Stufflers website as if she is still running it. Not only is this false advertising, but it is also incredibly cruel.
Google is littered with Jumping J-Jays and Stufflers websites that feature former franchisee photos still being displayed, inferring they are still the franchise owner. It makes the system look more successful than it really is, and gives false impressions to customers. If this isn't illegal, it is most certainly unethical and misleading.
28/2/15
Operations Manager Terminated
James Rizzato no longer has a job. What isn't clear is how this came about although i'm sure its not because the business is expanding.
This is the same James Rizzato that lost some of his fingers in an industrial accident, on one of John Newton's imported "fluff" making machine that I've discussed in the Stufflers section.
As usual, none of the websites have been updated to reflect this change. As far as I know Michael hasn't worked there for at least 2-3 years.