Risk of HOD business expansion falling short due to failure to secure franchisees
First written in FY2017. 3 of 6 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2026.
Osg Corporation moved to the "Worse" side of this theme in 2023.
4 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「Because the business strategy is nationwide expansion through an area-license chain model, securing franchise locations is directly linked to business scale expansion.」
The company continues to disclose the risk that securing franchise locations in the HOD business is directly linked to nationwide expansion and scale expansion. - FY2025-Q1MaterialisedAnnual report
「Wholesale sales of water servers and other products to franchise locations declined because the acquisition of new users fell below plan.」
The plan for acquiring new users was not met, and the risk relating to failure to expand franchise locations continues to materialize as lower wholesale sales to franchise locations. - FY2024MaterialisedAnnual report
「However, wholesale sales of water servers and other products to franchise locations declined because the acquisition of new users fell below plan.」
In connection with the risk of failing to secure franchise locations as planned, the company explains that failure to meet the plan for acquiring new users actually resulted in lower wholesale sales. - FY2024-Q2MaterialisedAnnual report
「Sales from wholesale deliveries to franchise locations declined partly because the launch of new franchisees' businesses was delayed.」
In connection with the risk of failing to secure and expand franchise locations as planned, the company explains that delays in launching new franchisees' businesses actually resulted in lower wholesale sales. - FY2021RestatedAnnual report
「Because the business strategy is nationwide expansion through an area-license chain model, securing franchise locations is directly linked to business scale expansion. Accordingly, if franchise locations cannot be secured as planned, this could affect the Group's operating results and financial position.」
The company is reaffirming the risk that failure to secure franchise locations in the HOD business could affect scale expansion and operating results. - FY2017First statedAnnual report
「Because the business strategy is nationwide expansion through an area-license chain model, securing franchise locations is directly linked to business scale expansion. Accordingly, if franchise locations cannot be secured as planned, this could affect the Group's operating results and financial position.」
Because securing franchise locations is directly linked to scale expansion in the HOD business, failure to meet the plan is identified as a risk to operating results and financial position.