Chatime Malaysia bubble-tea outlets will be rebranded following a dispute between franchisor La Kaffa International of Taiwan and Malaysia’s Loob Holdings.
The move follows a termination of the franchise contract because of irreconcilable differences. Loob Holdings, which runs 165 Chatime outlets in Malaysia, contributes more than half of the turnover for the franchise company’s 800 outlets internationally.
“We will surely come up with something better,” says CEO Bryan Loo, noting his company has nine other brands. He says it built the Taiwanese brand from scratch in Malaysia — “from zero to hero, and from no outlet to the current 165”.
Loo says disagreements and disputes over business and operational matters had all been dealt with in accordance with the terms of the franchise agreement.
“In 2011, there were a few dozen bubble-tea brands, and now there are only three. We are by far the market leader in our segment, and we are confident of holding this leadership with our own brand, which will be revealed when the time comes.”
The dispute came to light when La Kaffa announced on January 6 that it had terminated the franchise and would immediately take over all the 165 Chatime outlets in Malaysia. However, Loo has clarified that Loob Holding and its sub-franchisees are still running all 165 outlets. According to the franchise agreement, the outlets will stop using the Chatime branding after 45 days.
