Termination of franchise: Chatime operator in Malaysia to seek legal redress

Termination of franchise: Chatime operator in Malaysia to seek legal redress

Loob CEO says all 165 Chatime outlets will remain open in the meantime.

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KUALA LUMPUR:
Loob Holdings Sdn Bhd, operator and owner of Chatime outlets in Malaysia, will seek legal advice in response to news of a purported termination of the franchise agreement between it and La Kaffa International of Taiwan.

In a statement today, Loob chief executive officer Bryan Loo said although the franchisor owned the brand, all Chatime outlets in Malaysia were owned and operated by the company, either through direct ownership, sub-franchisees or joint venture with sub-franchisees.

He said while waiting for the legal process, all 165 Chatime outlets in Malaysia would be operating as usual under master franchisee Loob Holdings.

“Let me assure our Malaysian customers that our outlets would continue to offer the same quality products and excellent service that the company has built up over the past six years,” he said.

Earlier, La Kaffa’s chairman Henry Wang had announced the termination of Loob Holdings’ Chatime master franchisor contract due to disagreements in the direction of business operations.

Wang said it would take over the Chatime business operations in Malaysia and assured franchisees they would continue to receive support from the company.

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