Oldtown to have first restaurant in Fujian, China by Q3 2017

PETALING JAYA: Oldtown Bhd will have its first restaurant in Fujian, China by the third quarter of 2017.
In a filing with Bursa Malaysia yesterday, the group said its indirect wholly-owned subsidiary Shenzhen Kopitiam Asia Pacific Limited (SZKAP) has given Xiamen Kuaike Investment Management Company Limited the right to operate the restaurant business "Oldtown White Coffee" in the province of Fujian, China and to sub-license it to third parties.
The principal nature of business carried out by Xiamen Kuaike is investment holding, food and beverage management, franchise and licensing, and industrial investment.
The terms of the territorial license agreement will be for five years with an option to renew for two consecutive terms of five years, bringing the total to 15 years.
Xiamen Kuaike will open the first direct license outlet to the public by the third quarter of 2017 and achieve and maintain minimum performance standards, as set out in the terms and conditions of the agreement.
Xiamen Kuaike is given a first right of refusal to take up the territorial license for the territory rights with respect to Beijing, Guangdong and Shanghai vide separate letters of offers executed with SZKAP.
SZKAP had on March 21, 2017, executed a territorial license agreement with master licensee Oldtown Asia Pacific Limited (OTAP) to accept the territorial licence awarded by OTAP for the right to use and sub-license the use of trade name, trademark and system to be able to set up a network of outlets in the province of Fujian, China.