Dependence on franchise agreements and area licences
First written in FY2017. 4 of 5 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 1 of 7 companies on the "Worse" side.
9 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Under these franchise agreements, our operating territories are limited by the area licence system. Accordingly, for our group to expand its operating territories using various brands, it must enter into new franchise agreements while taking existing franchisees’ territories into account.」
The company continues to disclose its dependence on franchise agreements that include area-licence restrictions on operating territories and termination provisions. - FY2023RestatedAnnual report
「Under these franchise agreements, our operating territories are limited by the area licence system. Accordingly, for our group to expand its operating territories using various brands, it must enter into new franchise agreements while taking existing franchisees’ territories into account.」
The company continues to disclose the risk that area-licence restrictions on operating territories and the need for new franchise agreements to expand into additional regions may affect the business. - FY2020RestatedAnnual report
「Under these franchise agreements, our operating territories are limited by the area licence system. Accordingly, for our group to expand its operating territories using various brands, it must enter into new franchise agreements while taking existing franchisees’ territories into account.」
The company continues to disclose the risk that area-licence restrictions on operating territories and the need for new franchise agreements to expand into additional regions may affect the business. - FY2018RestatedAnnual report
「Under these franchise agreements, our operating territories are limited by the area licence system. Accordingly, for our group to expand its operating territories using various brands, it must enter into new franchise agreements while taking existing franchisees’ territories into account.」
The company reiterates the restrictions on operating territories under area licences and the risk of franchise agreements not continuing for brands including Gyomu Super, Fresh Lunch 39 and Yoshikei. - FY2017First statedAnnual report
「Under these franchise agreements, our operating territories are limited by the area licence system. Accordingly, for our group to expand its operating territories using various brands, it must enter into new franchise agreements while taking existing franchisees’ territories into account. The franchise agreements with the franchise headquarters for “Gyomu Super” and “Yoshikei” also contain termination provisions.」
The company identifies for the first time the risk that restrictions on operating territories under area licences and contract renewals, terminations and new agreements may affect business expansion.