Chatime Malaysia master franchisor axed
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Loob Holdings, which owns and runs the Chatime Malaysia outlets, says it will seek legal advice in response to news of a purported termination of the franchise agreement with La Kaffa International of Taiwan.
Loob CEO Bryan Loo says that while the franchisor owns the brands, all Chatime outlets in Malaysia are owned and run by his company, either through direct ownership, sub-franchisees or joint ventures with sub-franchisees.
While awaiting the legal process, he says all 165 Chatime outlets in Malaysia will be open as usual with Loob as master franchisee.
Earlier, La Kaffa chairman Henry Wang announced the termination of Loob Holdings’ Chatime master franchisor contract, which it has held for six year, because of disagreements in the direction of business operations.
Wang said La Kaffa would take over the Chatime business in Malaysia, assuring franchisees they would continue to receive support from the company.
Questions & Answers
Q.Why has La Kaffa International terminated the franchise agreement with Loob Holdings?
Why has La Kaffa International terminated the franchise agreement with Loob Holdings?
La Kaffa chairman Henry Wang stated the termination was due to disagreements regarding the direction of business operations. Loob Holdings had held the Chatime master franchisor contract for six years before this announcement was made by La Kaffa.
Q.What is Loob Holdings' immediate response to the termination announcement?
What is Loob Holdings' immediate response to the termination announcement?
Loob Holdings CEO Bryan Loo stated the company will seek legal advice in response to the purported termination. He also confirmed all 165 Chatime outlets in Malaysia will remain open as usual, with Loob continuing as the master franchisee.
Q.What will happen to the Chatime business in Malaysia, according to La Kaffa?
What will happen to the Chatime business in Malaysia, according to La Kaffa?
La Kaffa chairman Henry Wang announced that La Kaffa International would take over the Chatime business operations in Malaysia. He also assured existing franchisees that they would continue to receive full support directly from the company.
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