Spain
Spanish - Law 7/1996 Printable version
Spanish - Royal Decree
Printable version
Spain – Legislation specific to Franchising
1. Law 7/1996 of 15 Jan. 1996 on Retail Trading: Article 62
Article 62 defines the franchise system. It states the principle that Franchisors in Spain or wishing to enter the Spanish market must register in special franchise registers (federal register for foreigners, regional national franchisors). This article also defines the obligation that Franchisors must provide pre-contractual information to their future franchisees.
2. Royal Execution Decree 2485 of 13 November 1998
This decree develops the details of Law 7/1996. It details the conditions for establishing a franchise contract. It defines the National Register of Franchisors. The principle of the Register is vital because it establishes the rule that in order to function in Spain, a shop/brand name has been recognised and validated on the Spanish market. It is impossible to allow a franchise system on the market on the basis of brands submitted to the Patents and Brands Office if the name/brand has not been registered in the National or a regional franchise register.
The National register has 2 functions:
- to centralize data on all Franchisors in Spain,
- to register directly all foreign Franchise businesses on the Spanish territory. Spanish franchisors register in the Regional Register of the Autonomous Region in which their Franchise has it registered office.
The National Register comes under the Ministry of Economy and Finance - General Direction of Interior Commerce