Risks Related to Franchise Store Operations and Brand Credibility
First written in FY2017. 22 of 24 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
「During the current interim accounting period, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company's financial position, operating results or cash flows, among the matters relating to the business and accounting conditions described in the interim report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company states that there have been no new developments or material changes in risks related to FC store operations and brand reputation. - FY2025RestatedAnnual report
「• If a serious complaint or similar issue arises at a franchised store, it could damage the reputation of the company’s brand as a whole. • If a dispute or similar issue arises between the company and a franchised store, it could adversely affect the company’s business results and financial position through termination of the franchise agreement, litigation or other consequences.」
The company continues to identify as risks reputational damage caused by serious complaints at FC franchisees or disputes with franchisees, as well as contract termination and litigation. - FY2025-H1RestatedAnnual report
「During the current interim accounting period, there were no new occurrences of the major risks that management recognizes as potentially having a material impact on the company's financial position, operating results or cash flows, among the matters relating to the business and accounting conditions described in the interim report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company states that there have been no new developments or material changes in risks related to FC store operations and brand reputation. - FY2024-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The Company states that there have been no new occurrences or material changes regarding risks of reputational damage, contract termination or litigation arising from the operation of FC stores, serious complaints or disputes with franchisees. - FY2023RestatedAnnual report
「• If a serious complaint or similar issue arises at a franchised store, it could damage the reputation of the company’s brand as a whole. • If a dispute or similar issue arises between the company and a franchised store, it could adversely affect the company’s business results and financial position through termination of the franchise agreement, litigation or other consequences.」
The company continues to face risks of reputational damage to the brand, termination of contracts, and litigation arising from the operation of franchised stores, serious complaints, and disputes with franchisees. - FY2023-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company states that there have been no new developments or material changes in the risks relating to franchise-store operations and brand credibility. - FY2022-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2022-Q2RestatedAnnual report
「During the cumulative second-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2022-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2021-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no newly arising business or other risks. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2021-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2021-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2020RestatedAnnual report
「• It may be difficult to instill uniform store operating know-how and the company's management policies and initiatives. • Store openings and closures, relocations and other measures based on the company's store-opening policy may not be implemented flexibly. • Store operations may be disrupted depending on the franchisee's financial condition and other factors. • If a serious complaint or other issue arises at an FC store, it could damage the reputation of the company's brand as a whole. • If a dispute or other trouble arises with an FC franchisee due to factors involving the company or the FC store owner, the company could face termination of the franchise agreement, litigation and other events that may adversely affect its business performance and financial condition.」
The Company continues to identify risks involving the dissemination of policies to franchise stores, operational disruptions, serious complaints, and contract termination or litigation arising from disputes with franchisees. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2020-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2019WorsenedAnnual report
「・If disputes or other issues arise with franchisees due to factors attributable to the company or franchise store owners, the company’s business results and financial condition may be adversely affected through termination of franchise agreements, litigation, or other consequences.」
In addition to the risks relating to the communication of existing policies, franchisee operations and serious complaints, the Company explicitly identifies the possibility of contract termination and litigation arising from disputes with franchisees, expanding the range of risk items. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2019-Q2RestatedAnnual report
「No new business or other risks arose during the cumulative second-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2019-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first-quarter period. There were also no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2018RestatedAnnual report
「• It may be difficult to instill consistent store operating know-how and the company’s management policies and initiatives. • Store openings, closures and relocations based on the company’s store-opening policy may not be implemented flexibly. • Store operations may be disrupted by the franchisee’s financial condition or other circumstances. • If a serious complaint or similar issue arises at a franchised store, it could damage the reputation of the company’s brand as a whole.」
The company continues to disclose the risks of declining brand credibility due to failure to instil policies throughout franchise stores, operational disruptions and serious complaints. - FY2018-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no newly arising business or other risks. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new developments or material changes in the risks relating to franchise-store operations and brand credibility. - FY2018-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative second quarter. There were also no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2018-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first quarter. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The Company stated that there had been no material changes regarding risks related to franchise-store operations and brand reputation. - FY2017First statedAnnual report
「However, because franchisees are independent business operators, they also face the following potential risks. ・It may be difficult to implement standardized store operating know-how and disseminate the company's management policies and initiatives. ・Store openings and closures, relocations, and other actions based on the company's store-opening policy may not be carried out flexibly. ・Store operations may be disrupted by the franchisee's financial condition or other circumstances. ・If a serious complaint or other issue occurs at a franchise store, it could damage confidence in the company's brand as a whole.」
While FC expansion offers the benefits of lower costs and greater brand exposure, the company identifies the penetration of operating policies, the financial condition of franchisees, and reputational damage caused by serious complaints as risks.