Lian Fa claims it terminated an agreement between the two in September,making it unlawful for Sharetea Australia to use its brand or confidential information such as its recipes for the sweet milky tea served with pearls of tapioca that the chain is known for.
But according to an email seen byThe Sydney Morning Herald andThe Age, Sharetea Australia has refused to comply with the termination notice,sparking questions from the individual franchisees who operate outlets under the brand.
Sharetea Australia,launched by entrepreneur Teng ‘Anthony’ Mu almost a decade ago,has about 80 stores in its network. The company is vigorously contesting the termination notice in court,with a spokesman saying it has a legally binding agreement with Lian Fa that still has a decade to run.
He said Lian Fa had requested Sharetea Australia provide confidential information regarding its franchisees to help with the Taiwanese company’s public listing,which was at the heart of the dispute.
“Sharetea Australia did not comply with Lian Fa’s requests for several reasons,including our obligation to protect the confidentiality of our franchise partners,” the spokesman said. “Early this year,Lian Fa stopped supplying Sharetea Australia with product,which forced Sharetea Australia to source products from alternative suppliers.”
The spokesman said Sharetea Australia would keep operating normally while the dispute is before the courts,had informed its franchisees of the issue and maintained Lian Fa had not validly ended the two sides’ agreement,which was signed in Shenzhen and lasts until 2032.
“Sharetea Australia maintains that our menus,recipes,store designs and operations manual were developed independently of Lian Fa,” he said.