KUALA LUMPUR: The fate of 1,000 workers of the popular tea drink, Chatime, is in limbo after its Taiwanese franchisor ends the right of its Malaysian partner.
Master franchisee for Malaysia, Loob Holding Sdn Bhd, said La Kaffa International Co Ltd recently decided to prematurely end the franchise, which still has 24 years to go.
The dispute between La Kaffa and Loob Holding came out in the open when the franchisor announced at a press conference on Jan 6 that it had terminated the agreement and would immediately take over all the 165 Chatime outlets in Malaysia.
Chatime Malaysia’s outlets accounted for over half of the turnover recorded by the franchisor’s reported 800 outlets worldwide.
In a statement on Saturday, Loob Holding CEO Bryan Loo said he was concerned about the loss of jobs resulting from the termination.
“While we seek legal advice to protect our legitimate rights and interests under the franchise agreement which only runs out in 2041, we are very much concerned over what will happen to these workers and their dependents.
“Although our agreement with them (the franchisor) still has 24 years to go, they have unilaterally served us a termination letter on Jan 5,” he said.
Loo said the company’s management and supervisory staff were liaising with all its outlet workers to assure them that their livelihood would be protected.
He said while there had been disagreements and disputes over various business and operational matters in the past, these were all dealt with in accordance with the terms of the franchise agreement.
“We have lodged a police report against La Kaffa for the sudden termination and we will let the authorities take the necessary action according to the law,” Loo said.
Read more at http://www.thestar.com.my/news/nation/2017/01/23/business-dispute-leaves-a-bad-aftertaste-for-chatime-workers/#1V8fW1eompTWqBdp.99