KUALA LUMPUR, Feb 3 — The Malaysian franchise for Chatime was cancelled as the local firm sourced ingredients other than those approved in the commercial agreement, said the Taiwanese parent of the bubble tea chain.

According to Taiwanese firm La Kaffa, Loob Holding was also behind on royalty payments for the franchise.

The firm told the Channel News Asia portal that the Malaysian firm had sourced for raw ingredients that were not included in the original recipe, which La Kaffa said was unacceptable due to the possible harm this might do to the brand.

"A substantial amount of money is owed to La Kaffa for a considerable period, with some amounts outstanding for more than a year,” the firm told the news portal.

Loob Holding was responsible for bringing the franchise to Malaysia in 2010 and helped ignite the bubble tea craze here.

The firm went from a single store in the Pavilion shopping mall in Kuala Lumpur to 165 outlets across the country, which Loob claimed were responsible for half of all revenue from the over 800 Chatime-branded establishments worldwide.

La Kaffa’s global revenue in 2015 was RM233 million, according to Loob.

Aside from cancelling the Malaysian franchise, La Kaffa said it was also suing Loob over the dispute.

Loob has lodged a police report in Malaysia against La Kaffa claiming "unlawful” termination of their franchise agreement.

The franchise dispute has not yet affected consumers directly as the bubble tea drinks continue to be served at the 165 outlets in the country, at least until March 6.

The Chatime website in Malaysia also sought to assure customers with the message, "Here today, here tomorrow.”

Loob said it will rebrand the 165 outlets, but will retain the same concept as Chatime.