The Butter Factory Group (TBFG) announced yesterday they have terminated their franchise agreement with JV Entertainment Snd BHD (JVE), the company operating The Butter Factory KL.
TBFG attributed the termination to numerous breaches of the franchise agreement by JVE, including breaches of non-competition clauses and those the Group views as ruining “its long-standing reputation, goodwill, value and operational standards”.
Said TBFG’s executive chairman Tay Eu-Yen, “we hold our brand very dearly to our hearts and we expect those who wear our brand name to uphold our hard earned reputation.” She also said that the Group doesn’t see this setback as a failure on their part to sustain a franchise.
JVE is expected to have already removed The Butter Factory signage and other brand elements from the club’s premises. Any use of The Butter Factory’s brand name is considered by the Group to be unauthorised and unlawful.
