Franchises and master franchising in Spain
In the USA, 49% of small businesses are franchises. In the UK, the figure is 38%. In France 32%. In Spain, only 5% of small businesses are franchises. This represents real opportunities for foreign franchises, especially as the market in their home country becomes saturated.
Master franchising in Spain
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FAQs:
What are the requirements to start a master franchise in Spain?
Who needs to register in the Franchise Registry?
What does your master franchise service include?
Links:
The Chamber of Commerce of Madrid: discussion of franchises [Spanish]
One requirement is registration of the franchise. The other relates to obligations to the franchisee, as follows:
- At the signing of the contract, the franchiser must be able to prove to the franchisee that the trademark exists, and that it's registered or in the process of registration.
- The franchiser must guarantee to the franchisee adecuate protection of the trademark, since, as its owner, the franchiser is the only one who can exercise legal action against unauthorized use of the trademark by third parties.
- The franchiser must ensure that during the life of the contract, the franchisee can freely use the trademark and distinctive signs.
- The franchiser, in terms established in the contractual relation, will refrain from competing with the franchisee, using the same trademarks and signs, within the zone of exclusivity of the franchisee.
Who needs to register in the Franchise Registry?
Any franchise owner, whether a person or company, needs to register if they will be opening a franchise in more than one region (comunidad autónoma) of Spain. Registration must take place before the second franchise begins operating. Registration is free.
The application should be submitted to the office in the region where the company has its corporate address. Once approved by the office, the franchise data gets passed on to the Dirección General de Política Comercial for direct inscription in the Registry. If the owner does not have their corporate address in Spain, they can present the application to the Dirección General de Política Comercial directly.
What does your master franchise service include?
Our service includes the following:
- We work with you to develop an analysis of viability and strategic definition.
- We adapt the franchise to conform to Spanish legislation.
- We register the franchise. To accomplish that, we may need to show intellectual property rights, contracts, plans, photos, MOs, presentation of the products, and any other legalities necessary to start operating operating the franchise.