Bubble tea battle: Sharetea Australia ‘very happy’ after three-year fight against Taiwanese giant

2 days ago 1

A long-running ineligible tussle betwixt Sharetea Australia and the Taiwanese genitor institution down the bubble beverage marque has ended with the section concern gaining exclusive and indefinite rights successful Australia, adjacent arsenic it battles abstracted disputes with immoderate store operators.

Lian Fa International Business Dining Corporation, whose president founded Sharetea successful 1992, launched tribunal proceedings against the Australian maestro franchise Sharetea Australia successful October 2021 aft the nine-year narration broke down, with Lian Fa alleging that Sharetea Australia was utilizing its trademarks, recipes and passing disconnected its products without support aft terminating their agreement.

Sharetea Australia has won exclusive rights to the marque successful Australia for an unlimited term.

After years of delays wherever proceedings dates were pushed backmost respective times, the Federal Court ordered the 2 parties to be a mediation wherever they reached a settlement. Sharetea Australia present owns the exclusive trademark licence to Sharetea and the close to sub-license each registered and aboriginal registered trademarks relating to the marque successful Australia.

Teng “Anthony” Mu, who established Sharetea’s beingness successful Australia successful aboriginal 2012, said the result was a “big relief” and paid tribute to his ineligible squad Addisons.

“I’m not surprised. Of course, I’m happy,” Mu said.

Sharetea Australia laminitis Teng ‘Anthony’ Mu.

“It’s not lone maine that’s excited astir this result; it’s besides for the full caput bureau team, which is implicit 40, and besides for our full network, implicit 1000 Australian employees, relating to that galore families. I’m precise excited with these results, and I’m precise happy.”

The section bubble beverage concatenation has continued to grow implicit the years portion the quality ran successful the background: Sharetea Australia says it turns implicit much than $50 cardinal each twelvemonth and has 125 outlets crossed the state with plans to unfastened 25 much by the extremity of the year.

“The concern volition support increasing and ne'er stop,” helium said. “Every day, honestly, I enactment connected however to physique this brand, however to turn this business.”

Lian Fa was represented by instrumentality steadfast Holman Fenwick Willan, which declined to comment. Lian Fa has besides been contacted for comment.

While the tribunal lawsuit with Lian Fa has been resolved, Mu is facing abstracted disputes with immoderate of its franchisees. The Australian Small Business and Family Enterprise Ombudsman confirmed it had received 4 requests for assistance from bubble beverage franchisees successful the past 12 months. In precocious 2021, the ombudsman was handling 22 complaints astir constituent costs, supplies, leasing arrangements and selling funds.

One would-be franchisee said they were not informed by Sharetea Australia astir its dispute with Lian Fa earlier paying a $107,800 invoice to unafraid a franchise. After uncovering retired done this masthead’s reporting, they engaged a solicitor to petition a refund, arguing Sharetea Australia had not signed their portion of the deal.

“All our efforts to get this wealth backmost has exhausted america financially and emotionally,” they said.

The franchise codification of behaviour requires a franchisor to archer a franchisee successful penning astir ineligible disputes wrong 14 days if it is not mentioned successful disclosure documents.

“Part of our work is helping franchisees and we’d promote immoderate franchisees with problems similar these to attack america and we volition assistance with trying to resoluteness the dispute,” said Ombudsman Bruce Billson.

Sharetea Australia has rejected these allegations and said franchisees had each been adequately informed done the proviso of disclosure documents.

“This is not immoderate ineligible allegation,” said Mu. “I’m precise unsure if the accusation progressive is true.”

Lian Fa claims it terminated its statement with Sharetea Australia successful September 2021, which it refused to comply with. Lian Fa past initiated ineligible proceedings successful October claiming Sharetea had infringed its trademarks, engaged successful misleading and deceptive conduct, and ordered it to wage damages.

In a connection of assertion filed to the Federal Court obtained by this masthead, Lian Fa besides alleged Sharetea Australia placed an bid for ingredients totalling $124,829.76 successful January 2021 that Sharetea had agreed to wage for earlier picking up the goods.

“In breach of the agreement, Sharetea Australia took possession of the goods and has refused oregon neglected to wage for the goods sold and delivered to it by Lian Fa,” work the connection of claim.

Lian Fa subsequently stopped supplying Sharetea with ingredients, forcing the section concatenation to alteration suppliers, sparking complaints from franchisees of contamination and dormant insects.

The Fair Work Ombudsman conducted an audit of 14 Sharetea stores successful April 2022 and recovered astir $90,000 successful unpaid wages for 36 workers.

Of the 14 outlets, lone 5 met accelerated nutrient grant obligations. Casual pay, play punishment rates, and overtime rates were not decently paid and inspectors besides recovered inadequate record-keeping and payslip breaches.

As portion of the settlement, some parties person been ordered to wage their ain ineligible costs.

The Business Briefing newsletter delivers large stories, exclusive sum and adept opinion. Sign up to get it each weekday morning.