KUALA LUMPUR: There are only four franchised Chatime outlets that have opted to stay with the Taiwanese franchise owner, says Loob Holdings Sdn Bhd CEO Bryan Loo.
Loo, formerly the master franchisee, today said the other franchisees, or more than 95% from the total 165 Chatime outlets in Malaysia, have decided to quit the Chatime brand and to adopt Loob Holding’s new brand.
“Only three franchisees, who operate a total of four stalls, did not want to move on with us.
“They will be handed back to the franchise owner (La Kaffa International),” he told reporters at the Pavilion Shopping Mall here after launching his new brand, Tealive.
However, Loo did not disclose who are the three franchisees and where are the four outlets that chose to continue using the Chatime brand.
The figures disclosed by Loo showed a large difference from what was claimed by La Kaffa International Ltd earlier this month.
On Feb 7, at a press conference held at a hotel here, the Taiwanese company’s executive vice-president Teresa Wang said that they are confident that close to 50 out of the 165 franchisees will continue to collaborate with Chatime.
At the same press conference, La Kaffa had also thrown some doubt on the ingredients used by Loob Holdings, saying the latter had stopped ordering the halal ingredients supplied by them from Taiwan to make the beverages at Chatime’s Malaysia outlets.
Loob Holdings denied such claims, with Loo saying their products are certified by the Department of Islamic Development Malaysia (Jakim).
La Kaffa and Loob Holdings’ dispute started in early December, when the Taiwanese company terminated the master franchise agreement between the two parties even though there was more than 20 years left on the deal.
Loo had also lodge a police report over the sudden termination.
Both companies have taken their dispute to the Singapore International Arbitration Centre.
Loo declined to reveal any details on the arbitration process and what had transpired so far, saying he was bound by confidentially.
Meanwhile, he told reporters that Tealive will be opening their first outlet overseas in Vietnam by October this year.
“We have plans to deliver five outlets in Vietnam this year and hope to increase that with another 20 outlets by the end of 2018,” he said, adding that Tealive will also venture into other Asean countries within the next few years.