Brand Damage and Self-Competition Caused by Independent and Franchised Stores
First written in FY2023. 1 of 3 entries say "Worsened", first in FY2024. Latest entry: FY2025.
The whole theme swung hardest in 2025: 3 of 10 companies on the "Worse" side.
16 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If stores are opened too close to one another as the network expands, internal competition may arise and affect the results of the Group.」
Risks related to franchise operations, including brand damage, internal competition, failure to meet franchise plans and contract termination, continue to be disclosed. - FY2024WorsenedAnnual report
「If stores are opened too close to one another as the network expands, internal competition may arise and affect our results. Even after entering into a franchise agreement, failure to proceed as planned could affect the earnings plan.」
The scope has expanded from the existing brand-damage risk to include internal competition, failure to meet franchise plans, and risks of penalties, repurchase costs and disputes upon contract termination. - FY2023First statedAnnual report
「If an independent or franchise store damages the value of the brand through a violation of laws or regulations, reputational damage or another event beyond our control, this could affect our operating results or financial position.」
Pre-opening screening, sharing the Company’s principles, store visits and owner interviews are identified as mitigation measures.