LONDON: A legal and branding dispute has emerged between once-viral sensation Arshad Khan – popularly known as blue-eyed Arshad Khan Chaiwala – and Nadir Durrani, the London-based businessman who helped introduce the Café Chaiwala brand to the UK.
The dispute centers on the use of the Chaiwala name, payments and claims of independent brand development.
Arshad Khan only became a household name in 2016 after a picture of him making tea in an Islamabad stall went viral. Riding that wave of fame, he launched his original Chaiwala Café in October 2020. In March 2021, UK master franchise rights were awarded to Nadir Durrani and Yawar Akbar Durrani under a 10-store master franchise agreement.
The first branch under this arrangement opened in East London, Ilford Lane, in 2023, followed by a sub-franchise in Tooting, South London, in early 2025 – both doing good business.
The case hinges on intellectual property rights and contract interpretation. Arshad says the British partners have terminated him.
Speaking to Pakinomist News, Nadir confirmed that the British company has terminated its contract with the brand represented by Arshad. “We have parted ways amicably. We will soon be rebranding under a new name – which will be revealed very soon. We will soon be opening another outlet in Slough, West London.”
He claims that what was initially pitched as a franchise turned into a “self-built business” as the UK team received “no operational, material or marketing support from franchise owner Kazim Hasan and we had to design everything independently – from the logo and decor to recipes and customer experience”.
He added that despite loyal payment of royalties, the UK company was left without the resources typically provided in a legal franchise system. “Everything that defines our cafes – the visuals, the menu and the feel – was created here, not imported. We received no support from Arshad Khan’s team. He couldn’t come to the UK because of his Afghan nationality. Every promise his team made turned out to be false.”
Nadir said: “Arshad Khan’s team played no role in our success. The cafe’s identity, menu, operations and branding were not inherited from the franchisor, but conceived and built entirely through my own creativity, experimentation and persistence. I bore the financial burden, took all the risks and did the ground work where our headquarters are typically based on our personal success.”
Arshad claims that since early 2025 he has faced ongoing contractual and payment problems with his UK partners. He told this reporter that he had not received royalty payments for over 10 months despite the cafes continuing to operate and “making good money”.
“They sent me a termination notice and stopped my payments,” claimed Arshad. “But they still operate the business under my trademark ‘Café Chaiwala’ – removing only ‘Arshad Khan’ from the branding. “This is my name, my identity and my hard work. I just want justice.”
Nadir said: “Arshad Khan was not the franchisor but was instead managed by Kazim who was the actual franchisor who signed the agreement with us. When we signed the agreement with Kazim they had a flagship unit in Blue Area and more opening in Pakistan but they lost all their units due to poor performance. We sued them in Pakistan and never had a positive review of Arshad for us. signed the contract We offered to buy the franchise outright but the franchisor did not cooperate.
Arshad also said that he has now hired lawyers to pursue legal action and intends to travel to London after the cancellation of his CNIC – due to the issue of Afghan nationality, which was resolved last month.
In a statement, Kazim said: “The brand and its ownership remain solely under our franchise rights.”
