Spanish law requires franchisors to disclose certain information at least 20 days before the execution of an agreement or pre-agreement or before payment by the franchisee to the franchisor. The information must be communicated to the potential franchisee in writing and not in a misleading manner and must understand that, from a commercial point of view, the franchise sector has continued to grow. According to the 2018 report of the Spanish Association of Franchisees, there are 1,348 franchised brands operating in Spain, of which about 82.8% are Spanish and the rest from 26 different countries, with France, Italy and the United States being the main countries. This is an increase of 108.7% since 2001. Fashion is the main market, followed by hotels and restaurants. The form of Spanish franchise agreements is generally the same form as that used in the EU and the United States. Where a franchise agreement complies with the requirements of the EU Class Exemption Regulation (BER) 1, it generally meets the requirements of competition law in Spain. Under Spanish law, franchises are expressly excluded: franchise rules apply to commercial franchise agreements, regardless of the sector in which they operate. However, an exclusive commercial sales right contract is not necessarily a franchise when it is simply a contract by which a seller promises to purchase, under certain conditions, goods (which are normally protected) from a seller (who is normally protected) who, under certain conditions, grants the seller exclusivity over a specified territory and provides assistance to buyers. Under the regulations, a franchisor may ask the franchisee to execute a confidentiality agreement on the information disclosed.
Foreign franchisors may operate in Spain without special permission. In addition, recent amendments to the Retail Act no longer require other administrative obligations (e.g. B, registration in the crossing register or necessary updates). Therefore, a non-Spanish company has no restrictions on the granting of franchise or development master`s rights to a local franchisee or master franchisee. Similarly, there are no general restrictions on foreign franchisors holding equity in a local business or in possession of real estate. If the contract is indefinite, each party can terminate the contract without notice. Since there is no legal standard for the duration of the advance notice, it should be provided with a reasonable period of notice, as required by the circumstances of any agreement. However, under the Unfair Competition Act, termination of a commercial relationship without written and specific prior notification, which was made at least six months in advance, could be considered abusive, unless it was a serious offence or a case of force majeure.
In addition, these prohibitions do not apply (Article 5) to minor restrictions under the competition regulation, particularly where the participants in the agreement do not hold more than 10% or 15% market share (depending on whether the participants are competitors).