Four reasons to franchise your business in Spain
The franchise agreement enhances the franchisor’s distribution of products and provision of services and enables the franchisor to create a uniform commercial distribution network.
The Franchisor registration is no longer required in Spain
The Spanish Ministry of Industry and Competitiveness has suspended the Franchisor Registraty in Spain and thus, the obligation for all franchisors to register. This Registry was used as an information mechanism to keep track of the existence of franchises and their development in Spain.
Regulation of franchises in Spain vs the United States
In Spain, franchise law is regulated by Real Decree 201/2010, of February 26, which regulates the exercise of franchise commercial activity and the communication of information to the franchise registry – and by article 62 of the law on Retail Trade 7/1996.
Master franchise agreements in Spain: the trust by selectivity
The Master Franchise agreement is an exclusivity contract of a British/American franchise abroad. Structured by a double legal relationship between the headquarters, the master franchisee and the local franchisee, the contract allows the extension of a business model and the spirit of a British/American franchise abroad legally and economically.
Direct franchising in Spain: Security by proximity
Direct franchising permits British/American Franchisors to develop business models in Spain quickly and simply. As it offers the opportunity to freely choose commercial partners and the establishment areas of a business model, having recourse to a direct franchise agreement is a real token of quality and control when it comes to exporting a franchise business model to Spain.
Franchise exportation strategy to the Spanish market
The exportation strategy of a franchise to Spain is mostly based on a combination of three economical and legal factors: to lean on an innovative and profitable model, the roll out of a stable but flexible structure and the adaptation of the model to the specific needs of the targeted market by a good understanding of that market.
Elements of the franchise contract in Spain
The franchise contract in Spain has no specific regulations, although there are some pre-contractual duties that the franchiser must fulfil in order to give greater protection to the franchisee, which is always considered the weaker party.
Creating Franchises in Spain: What the franchisor must consider
The franchisor must consider the fundamental aspects of the business and what he wants to transmit to the franchisee in order for its project to function. In addition, the franchisor must have previously developed and have good knowledge of both the business model and the corporate image.
Why turn to a lawyer when opening a franchise in Spain
In Spain, the signature between the parties to a franchise contract is not governed by any specific law and must be performed at the end of the contracting period. It is therefore advisable to consult an expert lawyer in the franchising field before signing any document.
