Risk of Changes to and Contraction of the Lawson Corporate Franchise Agreement
First written in FY2017. 3 of 7 entries say "Restated". Latest entry: FY2022-Q3.
The whole theme swung hardest in 2024: 1 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2022-Q3Franchise agreement for 1 convenience store terminated, with part of the penalty waivedAnnual report
「In the convenience-store business, our group recorded the amount of penalty fees waived in part by the franchisor following the termination of the franchise agreement for 1 store as a gain on waiver of termination penalties under extraordinary income.」
The franchise agreement for 1 convenience store was terminated, and the franchisor partially waived the penalty fees. - FY2019RestatedAnnual report
「At the beginning of the current consolidated fiscal year, we reorganized the convenience-store business, previously our core business, and the number of stores declined substantially. As a result, segment profit from the business fell significantly, while the head-office administrative functions required of a listed company could only be reduced to a limited extent. Consequently, the allocated head-office burden per business location increased, which we recognize as a significant management issue.」
Continued to report that head-office administrative costs remained after the convenience-store business was downsized, increasing the allocated burden per business location. - FY2019-Q3RestatedAnnual report
「On 1 March 2018, we transferred part of our convenience-store business, comprising 91 company-operated stores and 5 franchised stores, to Lawson, Inc. and Lawson Urban Works, Inc. through absorption-type company splits. As a result, performance for the cumulative second quarter of the consolidated fiscal year under review fluctuated significantly from the same period of the previous year.」
The reorganization of the convenience-store business involving the transfer of 91 company-operated stores and 5 franchised stores, and its impact on performance, continued to be disclosed. - FY2019-Q2RestatedAnnual report
「On 1 March 2018, we transferred part of our convenience-store business, comprising 91 company-operated stores and 5 franchised stores, to Lawson, Inc. and Lawson Urban Works, Inc. through absorption-type company splits. As a result, performance for the cumulative second quarter of the consolidated fiscal year under review fluctuated significantly from the same period of the previous year.」
The reorganization of the convenience-store business involving the transfer of 91 company-operated stores and 5 franchised stores continued to be disclosed as a factor behind fluctuations in quarterly performance. - FY2019-Q1MaterialisedAnnual report
「Effective 1 March 2018, part of the Convenience Store Business was transferred to Lawson, Inc. and Lawson Urban Works Co., Ltd. through an absorption-type company split. From that date, the company implemented a major organizational restructuring, shifting to an operating structure consisting of 8 directly managed stores and reducing the scale of the business.」
The transfer of part of the convenience-store business and the resulting business downsizing resolved in the previous fiscal year were carried out on 1 March 2018. - FY2018-Q3MaterialisedAnnual report
「At the boards of directors meetings of both companies held on 22 November 2017, resolutions were passed to carry out two absorption-type company splits under which part of our convenience-store business, comprising 91 company-operated stores and 5 franchised stores, would be transferred to Lawson, Inc. and Lawson Urban Works, Inc., which had been newly established to operate the company-operated stores on behalf of Lawson, Inc.」
In connection with the corporate franchise agreement with Lawson, Inc., the companies resolved to carry out and entered into agreements for absorption-type company splits transferring part of the convenience-store business. The possibility of changes to the agreement and business downsizing emerged as a specific business reorganization. - FY2017First statedAnnual report
「The term of the franchise agreement with Lawson, Inc. is 15 years from 1 March 2012. Although it will not affect our business in the short term, substantial downsizing of the business would incur penalty fees, and changes to the agreement could affect the performance and financial position of our group.」
The company reported potential effects of the 15-year corporate franchise agreement with Lawson, Inc., including penalty fees if the business is downsized and the impact of changes to the agreement.