Pakistan’s renowned ‘Chaiwala’ Arshad Khan’s London café is facing serious financial difficulties, a year after its grand opening, due to non-payment of royalties by UK franchise owners.
The UK franchise, led by Nadir Khan Durrani and Yaver Akbar Durrani, has reportedly failed to fulfill their financial commitments to Arshad Khan, prompting him to pursue legal action.
Despite the initial success of the café, poor management, hygiene issues, and disputes with the building owner have led to a decline in business. Yaver Akbar Durrani, a key figure in the venture, has cited increased competition and reduced profitability as reasons for non-payment.
The disagreement has soured relations between Arshad Khan and the Durrani brothers, leading to threats of legal action and termination of the franchise agreement.
A source at Arshad Khan Chaiwala said that the Pakistani national has sold international franchise to Durrani brothers but they have broken the contract and agreement by not paying royalty to Arshad Khan and continuing to use his name therefore Arshad Khan will not allow them to use the brand and franchise anymore. “Both sides have threatened legal action against each other,” said the source in Islamabad.
When opening the café last year in London, brothers Bahadur Durrani, and Yaver Akbar Durrani and Nadir Durrani announced to open several franchise “Café Chaiwala Arshad Khan” in the United Kingdom, Europe, North America, Asia, Australia and the Middle East.
Arshad Khan, catapulted to fame in 2016, sold international franchises to the Durrani brothers, but the failure to uphold contractual obligations has resulted in a rift between the parties.
