Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 6/20/2019

The franchise sector continues to show signs of growth in Spain. With an annual turnover of $34 billion in 2018, the sector offers good potential for U.S. companies.  Please see the Franchise Best Prospect for more details.

When drawing up contracts, franchise companies - whether Spanish, foreign, or the master franchisee – must register with a special administrative Franchisors Registry and need to meet the requirements of the Disclosure of Pre-Contractual Information. The intended franchisee must receive all the required information in writing at least 30 days prior to signing a franchising contract or a pre-contract, or prior to any payment to the franchisor. All new contracts should comply with Spanish and EU legislation.  Current contracts should also be reviewed whenever possible.

Franchise Disclosure Rules in Spain

According to current law, the most important considerations are:

  • Each franchisor must disclose how long he/she has been managing the franchised business in question prior to disclosure;
  • Master franchisees are obliged to annex to their disclosure document a copy of his/her Master Franchise Agreement;
  • Foreign companies must translate all legal documents into Spanish and register them together with the original language versions;

Additionally, each franchisor may voluntarily register the following information:
  • The company's quality certifications;
  • Any mediation or ADR (Alternative Dispute Resolution) systems in use in the franchise network;
  • Whether the franchisor observes a Code of Conduct;
  • Whether the franchisor participates in the consumers' arbitration system or any other system to settle consumer complaints. Both sides must decide in which country (ies) the arbitration method will apply, if needed.

On May 28, 2014, the Spanish Franchise Association (Asociación Española de Franquiciadores – AEF) entered into an agreement with the World Intellectual Property Organization (WIPO) to promote arbitration in master franchise agreements. Franchise lawyers will be fully trained on ADR WIPO proceedings and the AEF will collaborate to verify that a potential arbitrator is experienced enough to be nominated as a WIPO arbitrator.

The World Intellectual Property Organization Copyright Treaty (WIPO Copyright Treaty or WCT) is an international treaty for copyright law. It provides additional protections for copyright, e.g. ensuring that computer programs are protected as literary works (Article 4), and that the arrangement and selection of material in databases is protected (Article 5). It provides authors of works with control over their rental and distribution (Articles 6-8) which they may not have under the Berne Convention alone. It also prohibits circumvention of technological measures for the protection of works (Article 11) and unauthorized modification of rights management information contained in works (Article 12).

Legislation regulating franchise matters in Spain includes:
  • Article 62, of Law 7/1996, of 15th January, of Retail Sector Management.
  • Royal Decree-Law 201/2010, of 26th February, regulating the exercise of commercial activity under a franchise regime and the communication of data to the Registry of Franchisors.
  • Law14/2013 of 27th September, Support for Entrepreneurs.
  • Law 20/2013 of 9th December, Warranty of Market Unity.
  • The public institution which manages the Registry of Franchisors is The Directorate General for Internal Trade of the Ministry of Economy and Competitiveness.  This is the public registry to which franchisors must communicate the beginning of the franchising activity in Spain.


Companies are advised to have all new contracts drawn up in compliance with Spanish and EU legislation, and to have current contracts reviewed whenever possible.  The U.S. Commercial Service Spain advises all U.S. companies to consult with a local legal office to ensure this compliance.

For more information on specific opportunities, trade shows and customized CS services, see the franchise leading sector below.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.