Tealive, Chatime owners reach settlement on franchise disputes

ETALING JAYA: Tealive operator Loob Holding Sdn Bhd and Chatime Taiwanese owner La Kaffa International Co Ltd have reached an out-of-court settlement on all disputes arising from the Chatime bubble tea brand.

In a joint statement today, they said the settlement agreement was executed yesterday with both parties agreeing to withdraw all proceedings in Malaysian courts as well as arbitration in Singapore.

“This settlement shall not constitute nor be deemed or treated by any party as an admission of any allegation and/or liability,” they said.

“Parties have come to an agreement in resolution of their disputes, in which the decision has also been made to stop all court or any other enforcement action against each other.”

The Tealive brand was created by Loob Holding after it exited a franchise agreement with La Kaffa, which owns the Chatime franchise.

The dispute between La Kaffa and Loob Holding started in early December 2016, when the Taiwanese company terminated the master franchise agreement between the two parties even though there were more than 20 years left on the deal.

On Feb 17 last year, La Kaffa sought an injunction to stop Loob Holding from selling products similar to theirs.

Company director Chen Zhao, through his affidavit, claimed Loob Holding had breached the terms of the main franchise agreement, leading to its termination.

Loob Holding appealed against the injunction order but failed as the judge ruled that there were no special circumstances to stop it since Loob Holding had not filed to seek leave to the Federal Court.