Brand Damage from Weaker Franchisee Earnings, Accidents, Misconduct and Litigation
First written in FY2017. 4 of 6 entries say "Restated". Latest entry: FY2025.
Poplar moved to the "Worse" side of this theme in 2025, 5 years after the typical company in this theme (2020).
The whole theme swung hardest in 2025: 4 of 12 companies on the "Worse" side.
2 other companies' latest entry also says "Worsened".
- FY2025WorsenedAnnual report
「If the Group suffers reputational damage due to evaluations, reputations or complaints concerning the products, goods and services it sells or manufactures, incidents and accidents at stores or elsewhere, or misconduct by the Company, its management, employees or franchisees, this could damage its corporate image and affect the Group’s operating results and financial position through sluggish sales and other effects.」
In addition to brand damage from store accidents, misconduct and franchisee disputes, the scope of the reputational risks expanded to include evaluations and complaints concerning products and services, and misconduct by management and employees. - FY2022RestatedAnnual report
「Accordingly, if the profitability of franchise stores deteriorates due to the emergence of competing stores or other factors, the brand image is damaged by accidents or misconduct at stores, or a dispute or lawsuit arises with a franchisee and results in an unfavorable outcome for the Company, this could adversely affect the Group’s operating results and financial position.」
Franchise-store profitability, store accidents and misconduct, brand damage, and disputes and lawsuits with franchisees continue to be identified as risks. - FY2021RestatedAnnual report
「If the profitability of franchise stores deteriorates due to the emergence of competing stores or other factors, the brand image is damaged by accidents or misconduct at stores, or a dispute or lawsuit arises with a franchisee and results in an unfavorable outcome for the Company, this could adversely affect the Group’s operating results and financial position.」
Deterioration in franchise-store profitability, store accidents and misconduct, brand damage, and disputes and lawsuits with franchisees continue to be identified as risks in the franchise business. - FY2019RestatedAnnual report
「Accordingly, if the profitability of franchise stores deteriorates due to the emergence of competing stores or other factors, the brand image is damaged by accidents or misconduct at stores, or a dispute or lawsuit arises with a franchisee and results in an unfavorable outcome for the Company, this could adversely affect the Group’s operating results and financial position.」
Franchise-store profitability, store accidents and misconduct, brand damage, and disputes and lawsuits with franchisees continue to be identified as risks in the franchise business. - FY2018RestatedAnnual report
「Accordingly, if the profitability of franchise stores deteriorates due to the emergence of competing stores or other factors, the brand image is damaged by accidents or misconduct at stores, or a dispute or lawsuit arises with a franchisee and results in an unfavorable outcome for the Company, this could adversely affect the Group’s operating results and financial position.」
Franchise-store profitability, store accidents and misconduct, brand damage, and disputes and lawsuits with franchisees continue to be identified as risks under franchise agreements. - FY2017First statedAnnual report
「If the profitability of franchise stores deteriorates due to the emergence of competing stores or other factors, the brand image is damaged by accidents or misconduct at stores, or a dispute or lawsuit arises with a franchisee and results in an unfavorable outcome for the Company, this could adversely affect the Group’s operating results and financial position.」
Deterioration in franchise-store profitability, brand damage from store accidents and misconduct, and disputes and lawsuits with franchisees are described as risks in the franchise business.