According to The Court of Appeal of Malaysia, an injunction was filed by La Kaffa International Co. Ltd., the owner of the Chatime franchise against Loob Holding Sdn Bhd, the company behind TeaLive Malaysia. The injunction was filed to stop TeaLive from operating a similar or competing business to Chatime’s.
This is in light of Loob Holding’s decision to change the name of Chatime to TeaLive almost overnight sometime last year. Chatime franchisees are not allowed to operate businesses similar to the popular bubble tea brand’s for at least two years ‘after the expiration or earlier termination of the franchise operation’ as shown in the printscreen below.
The Court of Appeal has dismissed the application of a stay of execution by Loob Holdings, the company behind TeaLive Malaysia. Thus, effective today, all TeaLive Malaysia outlets are to be shut immediately. This shutdown will affect 161 TeaLive stores and around 800 staff all over Malaysia.
Well, now that TeaLive is no more, will we still turn to other bubble tea brands in Malaysia? Only time will tell.