Tea Franchise License & Legal Requirements in India

Starting a tea franchise in India involves more than just investment—it requires compliance with legal and regulatory formalities to operate smoothly and avoid penalties. Here's a guide to the key licenses you’ll need in 2025.

1. FSSAI License
Mandatory for any food business. The Food Safety and Standards Authority of India (FSSAI) issues this license, which certifies your business for hygiene and safety standards. It’s valid for 1–5 years.

2. GST Registration
Required if your annual turnover exceeds ₹20 lakh. Even if you're under the threshold, many franchisors mandate GST for supply chain and billing integration.

3. Trade License
Issued by the local municipal body, this allows you to legally run your outlet within the specified premises.

4. Shop & Establishment Act Registration
Essential for hiring employees and maintaining legal working hours. Must be obtained from the state labour department.

5. Brand Agreement or Franchise Agreement
A formal contract with the franchisor outlining the terms, investment, location, training, and royalty clauses.

Optional: Fire Safety Certificate, NOC from landlord (if renting), and signage permission.

Completing these legal steps ensures your tea franchise runs without disruption. Most reputed brands like Tea Time or MBA Chai Wala assist in the documentation process as part of their franchise support.