Risk of Brand Damage from Franchisee Misconduct and Deteriorating Trust
First written in FY2016. 22 of 25 entries say "Restated". Latest entry: FY2027-H1.
The whole theme swung hardest in 2025: 4 of 12 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2027-H1RestatedAnnual report
「Wholesale sales to franchise stores: ¥4,904 million, representing 11.0% of sales and 103.4% of the same period a year earlier」
Wholesale sales to franchise stores accounted for 11.0% of sales, continuing to reflect a business structure based on franchisees and the associated brand-related risk. - FY2026RestatedAnnual report
「If the chain's overall brand image is affected by franchisees abandoning their businesses because of aging and a lack of successors, intensifying competition among franchisees, misconduct or other factors, operating performance may be affected.」
The risks of brand and operating performance impacts arising from aging franchisees, a lack of successors, competition among franchisees and misconduct continue to be identified. - FY2026-H1RestatedAnnual report
「Sales by business were ¥37.766 billion from company-operated stores (87.1% of total), ¥4.743 billion in wholesale sales to franchise stores (10.9%), and ¥862 million in other sales (2.0%).」
Wholesale sales to franchise stores accounted for 10.9% of total sales, continuing to indicate the business structure through franchisees and the associated brand-related risks. - FY2024-Q2RestatedAnnual report
「Wholesale sales to franchise stores: ¥2.348 billion (11.2% of total sales, 99.4% year on year)」
Wholesale sales to franchise stores accounted for 11.2% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2023-Q4RestatedAnnual report
「Sales by business were ¥51.938 billion from company-operated stores (87.1% of total), ¥6.864 billion in wholesale sales to franchise stores (11.5%), and ¥857 million in other sales (1.4%).」
Wholesale sales to franchise stores accounted for 11.5% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2023-Q2RestatedAnnual report
「Sales by business were ¥17.265 billion from company-operated stores (86.6% of total), ¥2.362 billion in wholesale sales to franchise stores (11.9%), and ¥302 million in other sales (1.5%).」
Wholesale sales to franchise stores accounted for 11.9% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2023RaisedAnnual report
「If the chain's overall brand image is affected by franchisees abandoning their businesses because of aging and a lack of successors, intensifying competition among franchisees, misconduct or other factors, operating performance may be affected.」
In addition to misconduct at franchisees and deterioration of trust, aging franchisees, a lack of successors, business closures and intensifying competition among franchisees are explicitly identified as risk factors. - FY2022-Q3RestatedAnnual report
「Operating results by business were as follows: sales at company-operated stores of ¥47,692 million (86.8% of total sales), wholesale sales to franchised stores of ¥6,623 million (12.0%), and other sales of ¥668 million (1.2%).」
Wholesale sales to franchise stores accounted for 12.0% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2022-Q1RestatedAnnual report
「Sales by business were ¥15.816 billion from company-operated stores (87.2% of total), ¥2.147 billion in wholesale sales to franchise stores (11.8%), and ¥180 million in other sales (1.0%).」
Wholesale sales to franchise stores accounted for 11.8% of total sales, with the sales structure through franchisees and the associated brand-related risks continuing. - FY2021-Q3RestatedAnnual report
「Wholesale sales to franchise stores: ¥6.977 billion (12.7% of total sales, 105.6% year on year)」
Wholesale sales to franchise stores accounted for 12.7% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2021-Q2RestatedAnnual report
「Operating results by business were as follows: sales at company-operated stores of ¥32,048 million (85.8% of total sales, 99.8% year on year), wholesale sales to franchised stores of ¥4,762 million (12.8%, 108.5% year on year), and other sales of ¥541 million (1.5%, 149.5% year on year).」
Wholesale sales to franchise stores accounted for 12.8% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2021-Q1RestatedAnnual report
「Wholesale sales to franchise stores: ¥2.303 billion (12.2% of total sales, 116.1% year on year)」
Wholesale sales to franchise stores accounted for 12.2% of total sales, with the sales structure through franchisees and the associated brand-related risks continuing. - FY2020RaisedAnnual report
「In addition, if the relationship of trust between the Group and its franchisees is damaged and this were to result in the termination of franchise agreements with a large number of franchisees, operating performance may be affected.」
In addition to brand damage caused by misconduct at franchisees, the potential impact of terminating agreements with a large number of franchisees is explicitly identified as a risk scenario. - FY2020-Q3RestatedAnnual report
「Operating results by business were as follows: sales at company-operated stores of ¥47,730 million (86.7% of total sales, 101.3% year on year), wholesale sales to franchised stores of ¥6,511 million (11.8%, 117.6% year on year), and other sales of ¥826 million (1.5%, 121.9% year on year).」
Wholesale sales to franchise stores accounted for 11.8% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2020-Q2RestatedAnnual report
「Sales by business were ¥32.101 billion from company-operated stores (87.2% of total sales, 101.5% year on year), ¥4.330 billion in wholesale sales to franchise stores (11.7%, 118.5%), and ¥423 million in other sales (1.1%, 96.8%).」
Wholesale sales to franchise stores accounted for 11.7% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2020-Q1RestatedAnnual report
「Wholesale sales to franchised stores: ¥1,984 million (10.6% of total sales, 113.4% year on year)」
Wholesale sales to franchise stores accounted for 10.6% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2019-Q3RestatedAnnual report
「Wholesale sales to franchised stores: ¥5,535 million (10.4% of total sales, 103.3% year on year)」
Wholesale sales to franchise stores accounted for 10.4% of total sales, with the business structure through franchisees and the associated brand-related risks continuing. - FY2019-Q2RestatedAnnual report
「Wholesale sales to franchise stores: ¥3.655 billion (10.2% of total sales, 101.8% year on year)」
Wholesale sales to franchise stores accounted for 10.2% of total sales, continuing to quantitatively demonstrate a certain degree of dependence on the franchise business. - FY2019-Q1RestatedAnnual report
「Wholesale sales to franchise stores: ¥1.749 billion (9.9% of total sales, 101.6% year on year)」
Wholesale sales to franchise stores accounted for 9.9% of total sales, continuing to indicate a certain degree of dependence on the franchise business. - FY2018-Q3RestatedAnnual report
「Wholesale sales to franchise stores: ¥5.358 billion (10.1% of total sales, 97.2% year on year)」
Wholesale sales to franchise stores accounted for 10.1% of total sales, continuing to quantitatively demonstrate a certain degree of dependence on the franchise business. - FY2018-Q2RestatedAnnual report
「Wholesale sales to franchise stores: ¥3.588 billion (10.1% of total sales, 96.4% year on year)」
Wholesale sales to franchise stores accounted for 10.1% of total sales, continuing to quantitatively demonstrate a certain degree of dependence on the franchise business. - FY2018-Q1RestatedAnnual report
「Wholesale sales to franchise stores: ¥1.722 billion (9.9% of total sales, 95.5% year on year)」
Wholesale sales to franchise stores accounted for 9.9% of total sales, continuing to quantitatively demonstrate a certain degree of dependence on the franchise business. - FY2017RestatedAnnual report
「Approximately 10% of the Group's sales are to franchise stores, and it has entered into basic franchise agreements with franchisees in Japan and overseas covering matters such as product supply prices and contract terms. Under franchise agreements with franchisees, the chain operates under the store brand names owned by the Group.」
The Group continues to describe its business structure, in which franchise sales account for approximately 10% of total sales, and the risk of brand damage caused by misconduct at franchisees or deterioration of trust. - FY2017-Q3RestatedAnnual report
「Sales by business were ¥45.572 billion from company-operated stores (88.3% of total sales, 101.4% year on year), ¥5.514 billion in wholesale sales to franchise stores (10.7%, 97.1%), and ¥543 million in other sales (1.0%, 81.0%).」
Wholesale sales to franchise stores accounted for 10.7% of total sales, quantitatively demonstrating a certain degree of dependence on the franchise business. - FY2016First statedAnnual report
「Approximately 10% of the Group's sales are to franchise stores, and it has entered into basic franchise agreements with franchisees in Japan and overseas covering matters such as product supply prices and contract terms. If the chain's overall brand image is affected by misconduct or other incidents at a franchisee, operating performance may be affected.」
Assuming a business structure in which franchise sales account for approximately 10% of total sales, misconduct at franchisees and the impact of contract terminations on the brand and operating performance are identified as risks.