<article>Malaysia&#8217;s popular tea drink brand Chatime will go in for a brand makeover following a dispute between Taiwan&#8217;s Chatime franchiser La Kaffa International Co and the local operator Loob Holdings.</article>

Malaysia&#8217;s popular tea drink brand Chatime will go in for a brand makeover following a dispute between Taiwan&#8217;s Chatime franchiser La Kaffa International Co and the local operator Loob Holdings.
The move follows a termination of franchise contract on differences in business matters.
Loob Holdings which runs 165 Chatime outlets in Malaysia contributes more than half of the turnover for the franchiser&#8217;s 800 outlets around the world.
In a statement earlier this week, Loob Holdings CEO Bryan Loo said, &#8220;we will surely come up with something better. Loob Holding has 10 brands under us, including this <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/51055-51055/" target="_blank">Taiwanese brand </a>which we built from scratch in Malaysia — from zero to hero and from no outlet to the current 165.&#8221;
Loo said, there had been disagreements and disputes over some business and operational matters but these were all dealt with in accordance with the terms of the franchise agreement.
&#8220;In 2011, there were a few dozen <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/31454-31454/" target="_blank">bubble tea brands</a> and now, there&#8217;re only three. We are by far the market leader in our segment and we are confident of holding this leadership with our own brand &#8211; which will be revealed when the time comes,&#8221; he said.
The dispute had come to light when La Kaffa announced at a press conference on January 6 that it had terminated the franchise and would immediately take over all the 165 Chatime outlets in Malaysia.
Loo has however, clarified that Loob Holding and its sub-franchisees are still operating all 165 outlets. According to the franchise agreement, all the current outlets would cease using the Chatime branding after 45 days.
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Tea drink brand Chatime to do a brand makeover following dispute between Taiwan’s Chatime franchiser La Kaffa International Co and local operator Loob Holdings.

Malaysia: Loob to create own brand after Chatime franchise dispute

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Malaysia: Loob to create own brand after Chatime franchise dispute

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