Loob owes us money: Chatime franchisor

PETALING JAYA: Chatime franchisor La Kaffa International Co Ltd claims that Loob Holding Sdn Bhd owes it a substantial amount of money, some of which has been outstanding for more than a year.
La Kaffa said, it considers product quality one of the most important promises to Chatime franchisees and customers and Loob breached the master franchisee contract, when it used and supplied raw materials that were not part of the approved recipe.
"It is a serious violation within the agreement where the ingredients used could, and may in the future, jeopardise the brand's image and is a violation that we at La Kaffa, take very seriously," La Kaffa said in a statement today.
The franchisor claims it tried to contact Loob Holding on various occasions with no response, leading it to appoint a global legal team to handle the legal process.
"We are convinced that Malaysia is a country with a high degree of rule of law, and a country that is absolutely committed to commercial integrity," said La Kaffa.
As the owner of Chatime brand, La Kaffa said the company's main priority is to protect Malaysia's Chatime consumers' interests and that of Chatime franchisees and their employees' rights.
It assured franchisees once again that they will continue to receive support from La Kaffa.