KUALA LUMPUR, March 6 — La Kaffa International announced today a new licensor of Chatime Malaysia that planned to open 30 outlets over the next six months, amid a feud with its former franchisee, Loob Holding Sdn Bhd.
The Taiwanese bubble milk tea company said the new Chatime Malaysia master licensor, Will Group, also planned to open an additional 40 Chatime outlets by mid-next year.
“A high degree of dedication and prudent business operations make Will Group an ideal entity to enhance our partnership with.
“By working closely with Will Group, we hope to grow the revenue of Chatime Malaysia to eventually account for about 10 per cent for the group in the next few years,” La Kaffa International chairman Henry Wang said in a statement.
Will Group managing director N. Aliza Ali said the company would further “develop and grow Chatime to maintain its position as the number one bubble tea brand in the market”.
According to La Kaffa International, Malaysia contributed about five per cent to the group’s revenue.
The Star reported that La Kaffa International filed last Thursday for a court injunction to stop Loob from continuing to sell bubble milk tea under its rebranded image.
Loob had reportedly announced a new brand called Tealive to replace its 161 Chatime outlets in Malaysia.
La Kaffa International terminated its franchise agreement with Loob on January 5. La Kaffa had reportedly accused Loob of purchasing raw materials from a third party and claimed that its former franchisee owed it US$644,536.32 (RM2.866 million) in outstanding payments.
