Risk of Declining Franchise Locations and Weakened Franchisor Functions
First written in FY2016. 10 of 16 entries say "Worsened", first in FY2024-Q2. Latest entry: 2026-08-10.
Plaza Holdings moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2026: 4 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- 2026-08-10WorsenedFinancial results presentation
「Franchised stores declined following the consolidation and closure of low-profit stores」
Franchised stores declined from 151 in the first quarter of the fiscal year ending March 2026 to 118 in the first quarter of the fiscal year ending March 2027, continuing the reduction in locations supporting the wholesale base. - FY2026WorsenedAnnual report
「At the end of the consolidated fiscal year, Palette Plaza had 126 franchised stores and 17 company-operated stores, compared with 157 franchised stores and 12 company-operated stores at the end of the previous consolidated fiscal year.」
The number of FC locations declined by 31 stores, from 157 at the end of the previous fiscal year to 126, and the decline in the locations supporting the FC head office's wholesale business continues. - FY2026-H1WorsenedAnnual report
「As of the end of the current interim consolidated accounting period, Palette Plaza had 147 franchise stores and 15 company-operated stores (157 franchise stores and 12 company-operated stores at the end of the previous consolidated fiscal year, and 161 franchise stores and 12 company-operated stores at the end of the previous interim consolidated accounting period).」
The number of franchise locations declined from 157 at the end of the previous fiscal year to 147, and from 161 at the end of the same period of the previous year to 147. The decline in the locations supporting the FC head office's wholesale business continues. - FY2025-H1WorsenedAnnual report
「Palette Plaza had 161 franchise stores and 12 company-operated stores at the end of the interim period of the current consolidated fiscal year, compared with 172 franchise stores and 14 company-operated stores at the end of the previous consolidated fiscal year and 181 franchise stores and 16 company-operated stores at the end of the previous interim period.」
The number of franchise locations continued to decline, falling by 11 stores from the end of the previous fiscal year. This reduced the store base supporting the FC head office's wholesale business. - FY2024WorsenedAnnual report
「Compared with the previous consolidated fiscal year, the Imaging Business reported a slight increase in revenue and a smaller segment loss. Although wholesale revenue declined as Palette Plaza franchise stores decreased and fixed costs increased as the new businesses, namely glamping and apparel, were launched, price increases at Palette Plaza stores and other factors reduced the loss.」
The decline in franchise stores continued to translate into lower wholesale revenue. The loss narrowed following price increases, but the impact of the decline in locations continues. - FY2024-Q3WorsenedAnnual report
「Compared with the end of the third quarter of the previous consolidated fiscal year, the Imaging Business reported lower revenue and a smaller loss. Wholesale revenue declined as Palette Plaza franchise stores decreased, and fixed costs incurred from the first quarter of the current consolidated fiscal year by the new businesses, namely glamping and apparel, remained unrecovered. However, the loss narrowed due to price increases at Palette Plaza stores, among other factors.」
The decline in franchise stores continued to translate into lower wholesale revenue, and fixed costs for the new businesses have not yet been recovered. The loss narrowed due to price increases at Palette Plaza stores and other factors, but the Imaging Business reported lower revenue. - FY2024-Q2WorsenedAnnual report
「Compared with the end of the second quarter of the previous consolidated fiscal year, the Imaging Business reported lower revenue and a slight reduction in its loss. This reflected lower wholesale revenue resulting from the decline in Palette Plaza franchise stores, higher fixed costs resulting from the temporary increase in Palette Plaza company-operated stores, and the inability to recover fixed costs incurred from the first quarter of the current consolidated fiscal year by the new businesses, namely glamping and apparel.」
The decline in franchise stores continued to translate into lower wholesale revenue, compounded by higher fixed costs resulting from the temporary increase in company-operated stores. - FY2024-Q1MaterialisedAnnual report
「Compared with the end of the first quarter of the previous consolidated fiscal year, the Imaging Business reported lower revenue and lower profit. This reflected lower wholesale revenue resulting from the decline in Palette Plaza franchise stores, higher fixed costs resulting from the temporary increase in Palette Plaza company-operated stores, and the inability to recover fixed costs incurred from the first quarter of the current consolidated fiscal year by the new businesses, namely glamping and apparel.」
The decline in franchise locations translated into lower wholesale revenue and became a factor behind the Imaging Business's revenue decline. - FY2022RestatedAnnual report
「The Group's performance may be affected if the franchise head office's functions are inadequately evaluated and the franchise locations decline because of circumstances affecting franchisees that are not attributable to the Group.」
The risks of inadequate evaluations of the FC head-office functions and declining locations due to circumstances affecting franchisees continue to be described. - FY2020RestatedAnnual report
「The Group's performance may be affected if the franchise locations decline because the franchise head office's functions are inadequately evaluated or because of circumstances affecting franchisees that are not attributable to the Group.」
The risks of inadequate evaluations of the franchise head-office functions and declining locations due to circumstances affecting franchisees continue to be described. - FY2019RestatedAnnual report
「The Group's earnings may be affected if the franchise locations decline because the franchise head office's functions are inadequately evaluated or because of circumstances affecting franchisees that are not attributable to the Group.」
The risks of inadequate evaluations of the franchise head-office functions and declining locations due to circumstances affecting franchisees are reiterated. - FY2018RestatedAnnual report
「The Group's earnings may be affected if the franchise locations decline because the franchise head office's functions are inadequately evaluated or because of circumstances affecting franchisees that are not attributable to the Group.」
The risk of inadequate evaluations of the FC head-office functions and declining locations due to circumstances affecting franchisees is reiterated. - FY2016First statedAnnual report
「The Company's earnings may be affected if the franchise locations decline because the franchise head office's functions are inadequately evaluated or because of circumstances affecting franchisees that are not attributable to the Company.」
The risk of declining locations due to inadequate evaluations of the head office and circumstances affecting franchisees is described.