Starting a franchise in Mumbai can be one of the smartest business moves you make — but only if you handle the legal side right. Whether you're planning to open a food outlet, a retail store, or a service-based franchise, this guide breaks down the step-by-step legal process to help you launch with confidence.
A franchise business allows you (the franchisee) to use an established company’s (franchisor’s) brand, systems, and support in exchange for fees and royalties.
Benefits of franchising:
✅ Ready-to-use business model
✅ Brand recognition
✅ Ongoing training & support
✅ Faster return on investment
Mumbai is:
🇮🇳 India’s commercial capital
💸 Home to high-spending consumers
🌍 Diverse and fast-growing market
🔁 Open to global and local franchise brands
Before signing anything:
Check brand credibility
Understand franchise fees and ROI
Read the Franchise Disclosure Document (FDD)
💡 Pro Tip: Don’t rely on word-of-mouth—do your own research!
This is the foundation of your franchise business. It must cover:
Roles & responsibilities
Territory rights
Duration & termination terms
Fee structure
Dispute resolution
🧑⚖️ Recommended: Hire a franchise lawyer in Mumbai to review or draft this document.
You can choose any of the following:
Sole Proprietorship
Partnership
LLP (Limited Liability Partnership)
Private Limited Company (Best for franchises)
📌 Register on the MCA portal
All businesses with turnover over ₹20 lakhs must have a GST number.
📍 Apply at: www.gst.gov.in
Apply for:
Shop & Establishment Act License
From: Municipal Corporation of Greater Mumbai (BMC)
Depending on your niche, you may need:
🍔 FSSAI License – Food business
🔥 Fire NOC – For commercial premises
👨🏫 Education Board NOC – For schools/learning centres
👷♂️ Labour Law Compliances – PF, ESI, etc.
Here’s what you’ll typically need:
| Document | Required For |
|---|---|
| Franchise Agreement | Legal foundation |
| PAN & Aadhaar | Identity verification |
| Business Registration Certificate | Entity setup |
| Rent Agreement / NOC | If operating on rented premises |
| GST Certificate | Tax compliance |
| Shop License | Local permissions |
| FSSAI License | For food-related businesses |
| Service | Cost (INR) |
|---|---|
| Business Registration | ₹7,000 – ₹15,000 |
| GST Registration | ₹0 – ₹2,000 |
| Trade License | ₹1,500 – ₹5,000 |
| Franchise Agreement | ₹5,000 – ₹20,000 |
| FSSAI License | ₹1,000 – ₹5,000 |
🎯 These are estimated prices and may vary based on legal advisors and consultants.
❌ Skipping legal review of the franchise agreement
❌ Missing municipal licenses
❌ Delayed GST filing
❌ Not clarifying your territorial rights
❌ Assuming franchisor handles all legalities