Franchise agreements in Spain: how they are regulated

The regulation of franchise agreements in Spain is based primarily on case law, as there are no specific regulations governing them. These agreements establish the guidelines that govern commercial relations between franchisors and franchisees.

Mónica Muñoz, an expert manager in the franchise sector, explains in L'Express Franchise that they grant “their own identity to legally regulate the reciprocal rights and obligations of the franchisor and franchisee.” 

Before entering into a franchise agreement, our expert points to prevention: “Before joining the franchise network, it is important that the franchisee has all the necessary information in hand to make the decision to sign or not sign the franchise agreement.” 

This contract stipulates a series of obligations and rights for the franchisee. On the one hand, the obligation to “carry out the franchised activity while respecting and applying the management methods proposed by the franchisor, complying with the obligation of confidentiality and respecting the industrial and/or intellectual property rights transferred under the franchise agreement and during its term.”

On the other hand, the franchisee has the right to “receive ongoing technical and commercial assistance and initial and ongoing training from the franchise headquarters; in addition, the territorial exclusivity zone that, where applicable, has been granted to them for the operation of the franchised activity must be respected.”