Franchisee Contract Breaches and Quality Control
First written in FY2016. 15 of 19 entries say "Worsened", first in FY2017. Latest entry: FY2026.
Seigakusha moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2025: 4 of 12 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「As of 31 March 2026, the Group operated 50 franchise classrooms of Individual Instruction Academy Free Step.」
The number of Individual Instruction Academy Free Step franchise classrooms subject to quality control and contract performance risks increased from 48 at the end of the previous fiscal year to 50. - FY2026-H1WorsenedAnnual report
「The number of franchise schools increased by 2 through conversions to franchises, while 1 school was converted to company-operated status.」
The number of franchise classrooms increased from 50 at the end of the previous fiscal year to 51. This indicates an expansion in the scope subject to contract performance and quality control risks associated with franchisee operations, although no breach of contract or other such event was reported. - FY2025WorsenedAnnual report
「As of 31 March 2025, the Group operated 48 franchise classrooms of Individual Instruction Academy Free Step.」
The number of Individual Instruction Academy Free Step franchise classrooms subject to quality control and contract performance risks increased from 47 at the end of the previous fiscal year to 48. - FY2024WorsenedAnnual report
「As of 31 March 2024, the Group operated 47 franchise classrooms of Individual Instruction Academy Free Step.」
It stated that there were 47 Individual Instruction Academy Free Step franchise classrooms subject to quality control risks, up from 43 at the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「As noted above, changes in operating formats increased the number of franchise schools by 1 (in Kyoto), while the opening of 8 kindergartens in Vietnam increased the total by 9 schools.」
The number of franchise classrooms increased from 43 to 52, expanding the scope subject to risks related to franchisee breaches of contract and quality control. - FY2023WorsenedAnnual report
「As of 31 March 2023, the Group operated 43 classrooms as franchise locations of Individual Instruction Academy Free Step.」
The number of franchise classrooms increased from 40 at the end of the previous fiscal year to 43, expanding the scope subject to risks related to franchisee breaches of contract and quality control. - FY2023-Q3WorsenedAnnual report
「In the Individual Instruction Division, revenue increased due to growth in the number of cram-school students, an increase in franchise classrooms and other factors, despite the impact of delays in course progress at Kaisei Education Group Yozemi Satellite Preparatory School.」
The number of franchise classrooms continues to increase, indicating an expansion in the scope subject to risks related to franchisee breaches of contract and quality control. - FY2023-Q2WorsenedAnnual report
「As noted above, changes in operating formats resulted in an increase of 5 schools and a decrease of 1 school among the franchise schools.」
The number of franchise classrooms increased from 36 to 40, expanding the scale subject to risks related to franchisee breaches of contract and quality control. - FY2021RestatedAnnual report
「As of 31 March 2021, the Group operated 35 classrooms as franchise locations of Individual Instruction Academy Free Step. The franchise classrooms use the same curricula and teaching materials as the Group and provide educational services at the same level as company-operated classrooms.」
The number of franchise classrooms was 35, unchanged from the end of the previous fiscal year, and the scope of quality control and contract breach risks did not change materially. - FY2021-Q2MitigatedAnnual report
「During the cumulative second quarter, 3 franchise classrooms, comprising 2 in Osaka Prefecture and 1 in Nara Prefecture, were converted to company-operated classrooms.」
The number of franchise classrooms decreased from 35 to 32, reducing the scale subject to risks related to franchisee breaches of contract and quality control. - FY2020RestatedAnnual report
「As of 31 March 2020, the Group operated 35 classrooms as franchise locations of Individual Instruction Academy Free Step.」
The number of franchise classrooms remained unchanged at 35 from the end of the previous fiscal year, and the scale subject to risks related to franchisee breaches of contract and quality control did not expand. - FY2020-Q2WorsenedAnnual report
「During the cumulative second quarter, 4 company-operated classrooms, comprising 2 in Osaka Prefecture and 2 in Hyogo Prefecture; 1 Kaisei Nursery School in Osaka Prefecture; 1 Aiterasu Nursery School in Hyogo Prefecture; and 1 franchise classroom in Hyogo Prefecture were newly opened.」
The number of franchise classrooms increased from 35 to 36, expanding the scope subject to risks related to franchisee breaches of contract and quality control. - FY2019WorsenedAnnual report
「As of 31 March 2019, the Group operated 35 classrooms as franchise locations of Individual Instruction Academy Free Step.」
The number of franchise classrooms increased from 24 at the end of the previous fiscal year to 35, expanding the scale subject to risks related to franchisee breaches of contract and quality control. - FY2019-Q3WorsenedAnnual report
「In terms of revenue, in addition to the increase in the number of students enrolled across the Group, the increase in franchise schools resulted in segment revenue of ¥8,975 million, up 6.2% year on year.」
The number of franchise classrooms continues to increase, expanding the scope subject to risks related to franchisee breaches of contract and quality control. - FY2019-Q2WorsenedAnnual report
「During the cumulative second quarter, 2 company-operated classrooms, comprising 1 in Hyogo Prefecture and 1 in Tokyo; 3 Kaisei Nursery Schools; 1 Kaisei Petit Nursery School; and 9 franchise classrooms, including 2 company-operated classrooms converted to franchise operation, were newly opened.」
The number of franchise classrooms increased from 24 at the end of the previous fiscal year to 33, expanding the scale subject to risks related to franchisee breaches of contract and quality control. - FY2018WorsenedAnnual report
「As of 31 March 2018, the Group operated 24 classrooms as franchise locations of Individual Instruction Academy Free Step. The franchise classrooms use the same curricula and teaching materials as the Group and provide educational services at the same level as company-operated classrooms.」
The number of franchise classrooms increased from 21 to 24, expanding the scale subject to risks related to franchisee breaches of contract and quality control. - FY2018-Q2WorsenedAnnual report
「The Group opened 3 new franchise classrooms, 1 in Osaka Prefecture and 2 in Kyoto Prefecture.」
The number of franchise classrooms increased from 21 to 23 through the opening of 3 new classrooms and the conversion of 1 classroom to company operation. The scale subject to quality control risks associated with franchisee operations increased. - FY2017WorsenedAnnual report
「As of 31 March 2017, the Group operated 21 classrooms as franchise locations of Individual Instruction Academy Free Step. The franchise classrooms use the same curricula and teaching materials as the Group and provide educational services at the same level as company-operated classrooms.」
The number of franchise classrooms increased to 21, expanding the scale subject to the risk that franchisee breaches of contract and other conduct could affect the brand. - FY2016First statedAnnual report
「As of 31 March 2016, the Group operated 16 classrooms as franchise locations of Individual Instruction Academy Free Step. Although it works to control the quality of its franchise classrooms, franchisees may breach their contracts or otherwise act outside the scope of the Company's guidance.」
It describes the scale of the franchise operation at 16 classrooms and the risk that franchisee conduct could affect the brand.