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Open a Franchise Business in Spain

Open a Franchise Business in Spain

The number of franchise businesses in Spain increased in 2016 by 5% compared to the previous year (in terms of franchise brands). The value of the market size for franchise businesses increased up to  nearly $30 billion, while the projections for 2017 show an estimate value of $30 billion. In order to open a company in Spain operating as a franchise, it is necessary to register with the Franchisors Registry and this is applicable to both domestic and foreign companiesOur team of specialists in company formation in Spain can advise on the main regulations set up in this sense. 

Franchise agreements in Spain 

A business set up as a franchise in Spain has to sign a franchise agreement, a type of contract concluded between the franchisor and the franchisee. According to the applicable legislation for franchise agreements, the parties have to establish a set of provisions following the requirements established under the Disclosure of Pre-Contractual Information.

In order to start the procedure of company formation in Spain for a franchise business, the franchisee must receive all the relevant information regarding the manner in which the business activities will be carried out 20 days prior to signing the contract. It is compulsory for foreign companies that will operate as franchises in Spain to translate all the company’s legal documents into Spanish and our team of agents can offer assistance with the procedure, as all the relevant documents have to be registered with the local authorities together with the original versions. 

We recommend the services offered by our accountants in Spain if you want to open a company in this country and to ensure smooth running from this point of view. You can opt for payroll services, bookkeeping, preparation of annual financial statements, audits, tax advice, financial analysis and reports, and tax minimization methods, among others. Regardless of the activities you have, contact us to learn more about the services we offer.

Legislation on franchising in Spain 

The legal definition of franchising in Spain is given by the Section 62.1 of the Retail Regulation Act, which was further refined by the Royal Decree 201/2010. The Royal Decree 201/2010 included stipulations regarding the experience of the franchisor on a local or foreign market, besides the contractual matters that have to be established through a franchise agreement. In this sense, the Decree imposes to the franchisor a certain level of business experience and success in his or her respective activity. 

The Decree provides other complusory requirments and businessmen can contact our team of consultants in company registration in Spain for further information on this matter.