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.