Xing Fu Tang Malaysia to Taiwan HQ: Stop the accusations, you’re only hurting the brand’s reputation

KUALA LUMPUR, Oct 31 — The Malaysian franchisee of popular brown sugar bubble tea chain Xing Fu Tang today urged the chain’s Taiwan founder to stop hurling accusations and further harming the brand’s reputation.

Xing Fu Tang Malaysia’s director Derek Cheong Sheng Ze today addressed allegations made by Xing Fu Tang Taiwan as part of their ongoing public dispute.

Cheong noted that Xing Fu Tang Taiwan’s founder Edison Chen had previously claimed that the sale of heart-shaped pearl moulding machines to franchisees at RM120,000 each was to purportedly to reveal Xing Fu Tang Malaysia’s “true colours”, but said Chen had allegedly changed the claim.

“The night Malaysia Xing Fu Tang revealed that he forced the franchisees across the world to purchase the pearl machines, he twisted his words in contrary claiming that the pearl machines were used to test the trust between franchisees,” Cheong said in a brief statement in response to Malay Mail’s enquiries.

Cheong’s statement was in response to Xing Fu Tang Taiwan’s Facebook post last night, where the Taiwanese company claimed that it had sought to sell the machines to the Malaysian franchisee Collab Working Lifestyle Sdn Bhd and Malaysian sub-franchisees to put them to the test and identify if they were in for the long haul or merely for quick short-term profits.

Xing Fu Tang Taiwan’s Facebook post last night also listed numerous other allegations against the brand’s Malaysian franchisee, including alleged breaches of contract terms including purported failure to obtain Taiwan headquarters’ prior consent for sales and promotions.

Xing Fu Tang Malaysia’s Cheong, however, urged for a stop to the allegations.

“Even our boba advertisement was criticised upon for no valid reason. We hope that the Taiwan HQ will stop with the ridiculous accusations and ruining Xing Fu Tang’s reputation further,” he said.

Cheong also claimed that Xing Fu Tang Taiwan’s principal CEO International was allegedly trying to “smear” the Malaysian franchisee’s reputation again.

“This time, they are bringing up an old case involving a former staff of Collab Working Lifestyle Sdn Bhd,” Cheong said, referring to Xing Fu Tang Taiwan’s Facebook post last night that claimed of the alleged “betrayal” of a former business partner.

Cheong said that CEO International had allegedly claimed that Xing Fu Tang’s Malaysian franchisee Collab Working Lifestyle was “unscrupulous” in its business conduct and had allegedly manipulated a former business partner.

Cheong however said that the individual concerned was “not a business partner or executive director of Collab Working Lifestyle”, but merely an employee.

“He was only employed as a manager. We have attended to this matter with a legal letter and warning,” Cheong said, adding that the company reserves the legal rights to take action against the alleged defamation by Xing Fu Tang Taiwan and the individual.

Cheong is also executive director of Collab Working Lifestyle.

Xing Fu Tang Taiwan had on October 21 posted a Facebook post that listed complaints against the Malaysian franchisee, while Xing Fu Tang Malaysia had in turn taken to Facebook on October 28 to hit back at the allegations and declared that it would not be bullied.

The dispute further escalated when Xing Fu Tang Taiwan last night said on Facebook that it would take legal action against the brand’s Malaysian franchisee Collab Working Lifestyle, after listing alleged contract violations and alleged tarnishing of the brand’s reputation by the Malaysian company.

Part of the current bubble tea craze locally, Xing Fu Tang Malaysia had started out with just one outlet on March 3 and had yesterday announced it would have a soft opening for its 40th outlet in the country in early November.

Malaysia had previously seen a dispute involving the Taiwanese bubble tea brand Chatime’s owner and the Malaysian master franchisee, which was later resolved and which had also resulted in the creation of the Tealive brand.

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