The Court of Appeal recently granted an injunction filed by La Kaffa International, the owner of Chatime, against its former franchise holder Loob Holding which owns the rival brand Tealive, from running a similar business.
According to The Star, the court said the injunction was based on “breach of post-franchise terms and the return of its properties” and Tealive is to cease operations. In a statement to A+M, Loob Holding said it filed an application for a stay of execution on 29 June 2018, adding that the matter is being handled by its lawyers and it will let the due process of law take its course.
The company also said in a statement on Tealive’s Facebook that it has instructed its lawyers to make the necessary applications to the courts to allow Tealive to maintain status quo until final settlement of the entire legal process.
“Loob Holding will honour all our obligations to all trade partners and customers, including those holding Tealive vouchers. Please bear with us as we go through this legal process and await its final conclusion. We value and appreciate all the support and understanding shown thus far by all parties,” it said.
Last year, Loob Holding gave up hold over the Chatime franchise due to disputes over business and operational matters with La Kaffa International before launching Tealive under 161 of its outlets. Since then, Loob Holding has launched the Tealive brand in Australia, Vietnam, India and China.
In a previous interview with A+M, CEO Bryan Loo said it is committed to expanding into six more countries in 2019 and have 1,000 stores in the region by 2020, mainly through its direct and franchise model. It is currently working with Melbourne-based independent agency The Sphere Agency as its global strategic partner.
In May this year, the company also added Nasi Lemak onto its menu. Its spokesperson told A+M that given Tealive is available at LRT and MRT stations, it sees that many customers may need a breakfast item other than drinks during their morning commute to work. Initially staring off with four outlets, the dish is now slowly extending to more outlets primarily at petrol stations and LRT and MRT stations. It is planned to be a permanent menu item, with variations every quarterly.