Open a Franchise Business in Spain

The franchise industry in Spain is best represented by businesses which carry their operations in the retail, accommodation and fast food industries. The highest rate of growth for franchise businesses was observed in certain Spanish regions, such as Valencia and Andalusia, as well as in the city of Madrid. Franchises operate on the local market through a franchise agreement, a legal document that is established between the franchisor and the franchisee. Our team of Spanish lawyers can advise on the regulations that are applicable to a franchising agreement concluded in this country.

 

 

A franchise business is characterized by the fact that the franchisor (the legal entity that has already established a successful brand in Spain or elsewehere) grants intellectual property rights to the franchisee, the entity that will enforce on an agreed territory the business model carried out under the respective brand. In this sense, the parties have to establish exclusivity matters, through which the franchisee will receive the right to sell products or services in a designated geographical area. 

 

Another aspect that should be stipulated in a franchise agreement refers to its duration. Customarily, franchise agreements are concluded for a period of five years, in which the franchisee will need to pay royalties to the franchisor for using the company’s intellectual property. Our team of lawyers in Spain can offer legal advice on the intellectual property regulations applicable here. 

 

It is also necessary to register with the local Franchisors Registry and, prior to signing the contract, the franchisee should receive all the relevant information on its obligations in due time (established at 20 days). 

 

 

The franchise companies operating in this country are regulated by a set of rules. These types of businesses have to follow the stipulations of the Royal Decree Law 201/2010, which obligates the parties to provide relevant data to the Franchisors Registry. 

 

Additional legal requirements are provided under the Article 62 of the Law 7/1996, as well as the Law 14/2013. Investors can address to our law firm in Spain for consultancy services regarding the legislation on franchising.