Jim's Group, Australia’s second largest franchisor, is claimed to have failed to fulfil his legal obligations in disclosure documents. Jim's is accused of misleading franchisees concerning UK litigation.Mr Penman has consistently informed media and franchisees that he was acting in response to the wishes of UK franchisees.

In the jurisdiction application, a copy of which has been obtained by WAtoday.com.au, lawyers for Mr Penman say there was no vote by UK franchisees to remove Mr Carr. SMH

While calling attention to parts of Jim’s franchise agreement, Mr Penman has stated that he can be voted out if 3 master franchisees call for a referendum.

Mr Penman previously told WAtoday.com.au that "90 per cent of UK franchisees voted that they wanted him out", though a letter from his lawyer last year to Mr Carr's lawyers refers to that as a "franchisee satisfaction survey".

Disaffected master franchisees have also tried to remove Mr Penman by the same method, but he has refused to recognise a vote held last year.