Why Open a Franchise in Spain?
Spain offers strong opportunities for franchising with:
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📊 Over 1,300 franchise brands and growing consumer markets
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🏙️ Strong presence in Madrid, Barcelona, Valencia, Málaga
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🤝 Government support for entrepreneurship and foreign investment
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💼 Diverse sectors: food, fashion, education, services, retail
Franchising is an ideal entry model for foreign brands and investors in Spain.
🧾 Types of Franchise Models
| Model | Description |
|---|---|
| Direct Franchise | Foreign franchisor contracts directly with Spanish unit |
| Master Franchise | One franchisee manages sub-franchisees in Spain |
| Joint Venture | Shared ownership between franchisor and Spanish partner |
📌 Most international companies choose Master Franchising for scale and efficiency.
⚖️ Legal Requirements for Franchises in Spain
Franchise activity is regulated by:
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Retail Trade Act (Ley de Comercio Minorista)
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Royal Decree 201/2010 on Franchising Regulation
📝 Disclosure Obligations
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The franchisor must provide a Franchise Information Document (DIP) at least 20 business days before signing or paying any fees.
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Must include: business history, trademarks, fees, training, legal issues, and financial data.
🧾 Franchise Agreement
Key elements:
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Rights to use trademark
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Franchisee obligations
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Initial and recurring fees
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Territory and exclusivity
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Termination and renewal terms
✅ Spanish Civil and Commercial Codes apply. Agreements should be in Spanish for local compliance.
🏢 Franchise Registration in Spain
Franchisors operating in Spain must:
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Register with the Spanish Franchisor Registry (Registro de Franquiciadores) via the regional authority
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Submit required documents including the DIP and business certificate
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Update annually with any changes
❗ Failure to register may result in fines and unenforceable franchise agreements.
💶 Tax & Employment Considerations
📊 Corporate Tax
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Standard 25% corporate tax applies to franchise companies
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Reduced rates may apply for new small businesses
👥 Hiring Employees
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Must comply with Spanish Labor Law
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Contracts, payroll, and social security must be registered correctly
🧾 VAT & Invoicing
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VAT registration is required for invoicing franchise fees
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Ongoing accounting and tax filing required
🔍 Case Study
Client: A U.S.-based food franchise wanted to expand into Madrid.
We handled franchising disclosure documents, DIP translation, registry filing, and drafting a Spanish-compliant agreement for their master franchisee. The business launched in under 6 months.
👨⚖️ How Borderless Lawyers Can Help
Our franchising services include:
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✅ Drafting and localizing franchise agreements
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✅ Preparing and filing Franchise Disclosure Documents
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✅ Registering in the Spanish Franchisor Registry
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✅ Tax setup and compliance
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✅ Legal support for franchise disputes or termination