KUALA LUMPUR (Aug 30): Loob Holding Sdn Bhd and La Kaffa International Co Ltd have now agreed to amicably settle all disputes arising from their one-time franchise relationship of the latter's Chatime bubble tea brand.

A joint press statement released today said both parties have agreed, in a settlement agreement executed yesterday, to withdraw all proceedings in Malaysian courts and arbitration in Singapore.

"This settlement shall not constitute nor be deemed nor treated by any party as an admission of any allegation and/or liability. Parties have come to an agreement in resolution of their disputes, in which the decision has also been made to stop all court or any other enforcement actions against each other.

"This joint press statement is part of the terms of settlement. Both parties have agreed that all the other terms shall remain private and confidential," it added.

Loob, the owner and franchiser of Tealive, has been in a legal dispute with La Kaffa since last year, when the latter terminated its contract with its sole Malaysian franchisee Loob over disagreements in royalty and ingredient sources.

Following the termination, Loob rebranded its Chatime stores to Tealive.

On July 5, Loob filed an appeal to the apex court to reverse a ruling granted in favour of the Chatime bubble tea stores' principal, La Kaffa.

This follows the Court of Appeal's dismissal of Loob's application for a stay to keep its Tealive outlets open while it appeals a court ruling that prohibits it from operating a competing business to Chatime in Malaysia for two years.

On July 16, the Federal Court granted Loob's request for a stay of the Court of Appeal's decision, which allowed Tealive stores to remain in business.