La Kaffa Int., the Taiwan franchisor for Chatime, has given its side of the story regarding the termination of its agreement with Malaysian company Loob Holding.
The Taiwanese company said that Loob Holding “used raw materials that were not part of the approved recipe” and that it was a “a serious violation within the agreement” which “could and might in the future, jeopardise the brand’s image and cause serious loss to franchisees”.
It is also reported that Loob failed to settle royalty fees in a timely manner, with amounts of money outstanding for over a year.
On the other end of the spectrum, Loob Holding and its CEO Bryan Loo seem to be moving on with its plans to unveil a new brand to replace Chatime at all 165 outlets in Malaysia.
On a new Facebook page called Tea Is Our Life with a similar purple colour palette as Chatime, a video is posted showcasing Loo detailing Loob Holding’s plans for the new brand so they would “come back with a bang” and building up excitement as something new is soon to be unveiled.
Watch it below:
