Aqualine to halt key business with ROY, restructures operations

Aqualine (TSE:6173) announced that it will suspend its franchise operations with ROY Corporation, a major business partner in its "water service support business," effective July 31, 2025. This decision follows ROY Corporation's intent to discontinue the franchise agreement. This is part of Aqualine's efforts to reorganize its "water service support business," which had previously been impacted by an administrative action from the Consumer Affairs Agency in 2021. At that time, Aqualine shifted to a franchise business model where ROY Corporation became a key franchisee. Although the business with ROY is ceasing, Aqualine has secured an agreement where another major franchisee will absorb some of the Aqualine employees who were working at ROY. Aqualine believes the impact of this transaction on its business performance will be limited, even though it is undertaking a detailed examination of the financial effects. For the fiscal year ending February 28, 2025, transactions with ROY Corporation totaled JPY 594,740,000, representing 17.2% of Aqualine's consolidated sales.