Business impact of declining or stagnant franchisee numbers
First written in FY2016. 18 of 31 entries say "Restated". Latest entry: 2026-07-31.
Century21 Real Estate Of Japan 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.
0 other companies' latest entry also says "Materialised".
- 2026-07-31MaterialisedEarnings
「New franchisees 3 0 1 1 0 5 Withdrawals (terminations) 5 2 2 0 0 9 Number of franchisee outlets at end of first quarter 400 303 103 92 32 930」
There were 5 new franchisees and 9 withdrawals or terminations in the first quarter, bringing the number of franchisee outlets at quarter-end to 930. The decline in franchisee numbers continued. - FY2026MaterialisedAnnual report
「Although some large franchisees operating multiple stores withdrew during the fiscal year, the number of withdrawals was 59, down 18 from the previous year, resulting in a net decline of 26 franchise stores.」
The company actually experienced a decline in franchisee numbers, with 59 withdrawals, 33 new franchisees and a net decline of 26 franchised stores, including the withdrawal of large franchisees. - 2026-04-30MaterialisedEarnings
「New franchisees 16 9 6 1 1 33 Withdrawals (terminations) 24 25 1 3 6 59 Number of franchisee outlets at fiscal year-end 402 305 104 91 32 934」
In the fiscal year ended March 2026, there were 33 new franchisees and 59 withdrawals or terminations, reducing the number of franchisee outlets at year-end by 26, from 960 to 934. The decline and sluggish growth in franchisee numbers continued during the fiscal year. - FY2026-H1MaterialisedAnnual report
「While new franchise additions have remained sluggish, a certain number of franchisees have withdrawn because of poor performance and other reasons, and the number of franchise outlets has declined. We will nevertheless continue to focus on acquiring new franchisees.」
The company states that the actual situation includes sluggish growth in new franchisees, franchisee withdrawals due to poor performance and other factors, and a decline in the number of franchised stores. - FY2025MaterialisedAnnual report
「Although some large franchisees operating multiple stores withdrew during the fiscal year, the company launched the Century 21 Management Academy to improve franchisee performance … 77 stores withdrew, an increase of 6 from the previous fiscal year. As a result, the number of franchise stores declined by a net 34.」
Some large franchisees operating multiple stores withdrew, resulting in 77 withdrawals and a net decline of 34 franchise stores. - FY2025-H1MaterialisedAnnual report
「A certain number of franchisees have withdrawn because of poor performance or independence, and progress toward expanding the number of franchise outlets has been slow, but we will continue to focus on acquiring new franchisees.」
The company states that a certain number of franchisees withdrew due to poor performance or independence, and that progress in expanding the franchisee base has slowed. - FY2024MaterialisedAnnual report
「Regarding the number of franchised stores, we strengthened online customer acquisition by improving the SEO of the franchise recruitment website and took other measures to increase new contracts. There were 57 new franchisees during the fiscal year. However, withdrawals, including unexpected withdrawals due to poor performance by franchisees whose main business was construction, totaled 71 stores, an increase of 15 from the previous fiscal year. As a result, the number of franchise stores declined by a net 14.」
Including unexpected withdrawals due to poor performance by franchisees whose main business was construction, 71 stores withdrew, resulting in a net decline of 14 franchise stores. - FY2024-Q3MaterialisedAnnual report
「The number of stores that withdrew during the cumulative third quarter was 55, primarily due to poor performance and other factors. We will continue to monitor the business conditions of existing franchisees and actively pursue the acquisition of new franchisees.」
Franchisee withdrawals due to poor performance and other factors actually occurred, with 55 stores withdrawing during the cumulative third quarter. The company states that it will pursue new franchisee acquisitions while monitoring the business conditions of existing stores in response to continued withdrawals. - FY2024-Q2MaterialisedAnnual report
「The number of stores that withdrew during the cumulative second quarter was 45, including franchisees that withdrew due to poor performance resulting from conditions in the construction industry and those that withdrew to operate independently under their own brands. Although withdrawals are currently outpacing additions, we will continue to monitor the business conditions of existing franchisees while focusing on acquiring new franchisees.」
Including withdrawals due to poor performance resulting from deteriorating conditions in the construction industry and withdrawals to operate independently under proprietary brands, 45 stores withdrew during the cumulative second quarter. The company states that withdrawals are currently outpacing additions and that it will focus on acquiring new franchisees while monitoring the business conditions of existing stores. - FY2024-Q1MaterialisedAnnual report
「In the construction industry, which is closely related to real estate brokerage, many companies have suffered poor performance due to worsening business conditions, including soaring materials and equipment costs and labor shortages, and the impact on the real estate brokerage industry is by no means insignificant. Among our franchisees, some companies that operate construction businesses as related operations have also found it difficult to continue their businesses. In response to the business conditions in the construction industry and other sectors described above, the number of stores that withdrew during the cumulative first quarter, including franchisees that withdrew due to poor performance, was 26. This represented approximately one-third of the number of withdrawals expected for the full year. We will continue to monitor the business conditions of existing franchisees while focusing on acquiring new franchisees.」
The company states that worsening conditions in the construction industry have actually made it difficult for some franchisees' related businesses to continue, and that 26 stores withdrew during the cumulative first quarter. - FY2023RestatedAnnual report
「We operate our real estate brokerage business under a franchise model, and steady growth in the number of franchised stores is key to its success.」
The company reiterates the risk that declining or stagnant franchisee numbers could affect operating results and financial position, together with a list of the underlying factors. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2022RestatedAnnual report
「We operate our real estate brokerage business under a franchise model, and steady growth in the number of franchised stores is key to its success. If we become unable to maintain high-quality services for franchisees, violate the Act on Improvement of Management of Small and Medium-sized Retail Businesses or other relevant laws, or if other companies provide better services than we do and franchisees leave for those companies' brands, the number of franchised stores could decline or stagnate. The same could occur if some franchisees provide low-quality services to customers or engage in illegal activities, damaging the image of our franchise business as a whole, or if franchisees collectively seek to operate independent businesses. These developments could affect our operating results and financial position.」
The company reiterates the factors that could cause franchisee numbers to decline or stagnate, including lower service quality, legal violations, franchisee attrition to other brands, reputational damage and collective pursuit of independent business operations. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2022-Q1RestatedAnnual report
「During the cumulative first quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the risks relating to the business and other matters, and indicates no new changes concerning the business impact risk arising from declining or stagnant franchisee numbers. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the risks relating to the business and other matters, and indicates no new changes concerning the risk of declining or stagnant franchisee numbers. - FY2020-Q3RestatedAnnual report
「During the cumulative third quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2019RestatedAnnual report
「If we become unable to maintain high-quality services for franchisees, violate the Act on Improvement of Management of Small and Medium-sized Retail Businesses or other relevant laws, or if other companies provide better services than we do and franchisees leave for those companies' brands, the number of franchised stores could decline or stagnate. The same could occur if some franchisees provide low-quality services to customers or engage in illegal activities, damaging the image of our franchise business as a whole, or if franchisees collectively seek to operate independent businesses. These developments could affect our operating results and financial position.」
The company reiterates the risk of declining franchisee numbers due to franchisee attrition, lower service quality, legal violations or collective pursuit of independent business operations. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2019-Q2MitigatedAnnual report
「The effectiveness of activities by the FC Consulting Department, established to improve performance and curb the withdrawal rate, also helped keep the number of withdrawing stores low, at approximately 50% of the previous year's level.」
As a measure to address the risk of franchisee withdrawals, the company states that the activities of its FC Consulting Department reduced the number of withdrawing stores to approximately 50% of the previous year's level. - FY2018RestatedAnnual report
「If we become unable to maintain high-quality services for franchisees, violate the Act on Improvement of Management of Small and Medium-sized Retail Businesses or other relevant laws, or if other companies provide better services than we do and franchisees leave for those companies' brands, the number of franchised stores could decline or stagnate. The same could occur if some franchisees provide low-quality services to customers or engage in illegal activities, damaging the image of our franchise business as a whole, or if franchisees collectively seek to operate independent businesses. These developments could affect our operating results and financial position.」
The company reiterates the risk that franchisee numbers could decline or stagnate due to franchisee attrition, lower service quality, legal violations or collective pursuit of independent business operations. - FY2018-Q3RestatedAnnual report
「Against this backdrop, partly due to the cancellation of a franchise agreement by a major franchisee at the beginning of the fiscal year, service fee revenue declined 3.1% year on year, or ¥75 million, to ¥2,338 million,」
The impact of the cancellation of a major franchisee agreement at the beginning of the fiscal year continues to be cited as a factor behind the decline in service fee revenue. - FY2018-Q2MaterialisedAnnual report
「Against this backdrop, partly due to the cancellation of a franchise agreement by a major franchisee at the beginning of the fiscal year, service fee revenue declined 3.8% year on year, or ¥60 million, to ¥1,517 million. IT services revenue rose 6.3%, or ¥21 million, to ¥359 million. Franchise fee revenue declined 3.1%, or ¥2 million, to ¥82 million, while other revenue rose 24.3%, or ¥5 million, to ¥29 million. Overall, revenue declined 1.8%, or ¥35 million, to ¥1,989 million.」
The cancellation of a franchise agreement by a major franchisee actually occurred, and its impact is cited as a factor behind the decline in service fee revenue. - FY2018-Q1RestatedAnnual report
「During the cumulative first quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2017RestatedAnnual report
「A decline or stagnation in the number of franchised stores could affect the company's operating results and financial position.」
The company reiterates the risk that declining or stagnant franchisee numbers could affect operating results and other matters. - FY2017-Q3RestatedAnnual report
「During the cumulative third quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2017-Q2RestatedAnnual report
「During the cumulative second quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company states that there were no material changes to the business impact risk arising from declining or stagnant franchisee numbers. - FY2017-Q1RestatedAnnual report
「During the cumulative first quarter, there were no material changes in the company's financial position, operating results or cash flows, including any abnormal fluctuations, or in the risks relating to the business and other matters described in the securities report for the previous fiscal year.」
The company expressly stated that there were no material changes to the previously disclosed risk of declining or stagnant franchisee numbers. - FY2016First statedAnnual report
「We operate our real estate brokerage business under a franchise model, and steady growth in the number of franchised stores is key to its success.」
The company identifies as risks the possibility that the number of franchised stores could decline or stagnate due to franchisee attrition, lower service quality, legal violations or franchisees collectively pursuing independent business operations.