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Franchise agreement in Spain: Template, Key Clauses and Local Law (2026)

Adira EditorialLegal AI desk5 min read

What a Spanish franchise agreement is, and the law that governs it A franchise agreement in Spain lets a franchisee run a business under the franchisor's brand, system and know-how in return for fees. There is no full franchise code. The regime is built on two instruments: Article 62 of the Retail Trade Act (Ley 7/1996 de Ordenacion del Comercio Minorista), which defines franchising and sets the disclosure duty, and Royal Decree 201/2010, which develops the rules, in particular the pre-contract information a franchisor must give. The contract itself is then governed by general civil and commercial law and by EU and Spanish competition law. The heart of the regime is pre-contract disclosure. A franchisor must give the prospective franchisee truthful, non-misleading, franchisee-specific information in writing a set period before signing. Beyond that, the commercial terms are largely for the parties to agree. This article is general guidance, not legal advice. Have a Spanish lawyer review a franchise agreement before you sign. ## What local law requires in 2026 - Framework: Law 7/1996 and Royal Decree 201/2010. Article 62 of Law 7/1996 defines the franchise and requires pre-contract disclosure; Royal Decree 201/2010 sets out the detail.

  • Pre-contract disclosure, at least 20 days before. The franchisor must provide written, truthful and non-misleading, franchisee-specific information at least 20 days before signing the franchise agreement or any pre-agreement, or before the prospective franchisee pays anything. Some sources read the period as 20 working days, so check the exact count.
  • What must be disclosed. Royal Decree 201/2010 lists the items, including the franchisor's identity and registration, proof of its trademark rights, a description of the business and the sector, the structure and extent of the network, and the essential terms of the franchise agreement.
  • Registration is not mandatory. There is no requirement to register the franchise agreement or the trademark licence to make the franchise valid; the former national franchisor register is no longer a mandatory condition of operating.
  • Competition law applies. Vertical restraints such as resale-price terms, territory limits and non-competes are judged under the EU vertical block exemption and Spanish competition law. Keep post-term non-competes narrow.
  • No special franchise contract statute. Beyond disclosure, the contract runs on general civil and commercial law, so the written terms largely decide the relationship. ## Spanish franchise agreement template Copy the block below and fill the bracketed fields. Deliver the required pre-contract information at least 20 days before signing and keep dated proof. ``` FRANCHISE AGREEMENT (CONTRATO DE FRANQUICIA) This agreement is made on [DATE], at least 20 days after delivery of the pre-contract information dated [DATE]. BETWEEN: [FRANCHISOR NAME], [tax ID], [address] ("Franchisor") AND [FRANCHISEE NAME], [tax ID], [address] ("Franchisee") 1. GRANT AND TERRITORY The Franchisor grants the Franchisee the right to operate a [brand] franchise at [location] / in [territory], [exclusive / non-exclusive]. 2. TERM AND RENEWAL Term: [N] years from [DATE]. Renewal: [conditions]. 3. FEES Initial fee: [amount]. Royalty: [percentage of turnover]. Marketing contribution: [amount]. Payment: [schedule]. 4. SYSTEM, KNOW-HOW AND IP The Franchisor licenses the brand, the operations manual and the know-how. Trade marks and other IP remain the Franchisor's. 5. TRAINING AND SUPPORT The Franchisor provides [initial training and ongoing support]; the Franchisee keeps standards and passes inspections. 6. OBLIGATIONS OF THE FRANCHISEE Operate to brand standards, use approved supplies, keep records, report turnover, maintain insurance. 7. RESTRICTIONS [In-term exclusivity.] Territorial, pricing and non-compete terms comply with competition law; any post-term non-compete is limited to [duration], [area] and [scope]. 8. TERMINATION Grounds, notice and consequences; end-of-term treatment of IP use, signage and stock. 9. GOVERNING LAW AND DISPUTES Spanish law applies. Disputes go to [the courts of (place) / arbitration]. Signed: Franchisor ____________ Franchisee ____________ Name / date Name / date
- **Fees (clause 3).** List the initial fee, royalty base, marketing contribution and any supply mark-up, and make sure they match the disclosed information.
- **Restrictions (clause 7).** Resale-price maintenance and overbroad territory or non-compete terms are judged under the EU vertical block exemption and Spanish competition law. Keep post-term non-competes narrow in time, area and scope.
- **Term and renewal (clause 2).** There is no statutory right to renew, so the renewal mechanism matters for a franchisee who invests in fit-out and local goodwill. ## Red flags to avoid - Signing or taking payment before the disclosure period has run. Deliver the information at least 20 days before, keep dated proof, and check whether the count is calendar or working days.
- Disclosure that is incomplete, misleading or inconsistent with the signed agreement.
- Assuming registration makes the franchise valid; it is not a mandatory condition, and skipping disclosure is the real risk.
- A post-term non-compete too wide to survive competition-law review.
- No clear renewal mechanism for a franchisee who has invested heavily.
- Vague brand-standard and supply obligations that become disputes. ## Where a contract workspace helps A template gives you a workable Spanish franchise agreement. The ongoing work is everything around it: preparing the pre-contract information, delivering it at least 20 days before signing and keeping dated proof, keeping the disclosed information and the agreement aligned on fees, territory and term, tracking renewal and notice windows across a growing network, and keeping restraints within competition law. Drafting from a franchise template, checking that disclosure and agreement line up and the 20-day rule is met, reviewing restraint and termination terms, and tracking renewal dates across many units can sit in one AI workspace tuned to how your company franchises. [Adira](https://adiralaw.com) is built around that shape: it drafts from a template, models the contract as linked clauses so a change in one place can be traced through the rest, lets you edit in plain language, and keeps renewal and notice dates on one timeline. Adira is India-first today, and deeper Spain-specific coverage is on its roadmap rather than a settled claim, so use it for drafting and review and keep a Spanish franchise lawyer for the local-law call. The template and checklist above are enough to start a fair agreement on their own. Last verified October 2026.

Frequently asked questions

Is there a franchise law in Spain?
There is no full franchise code, but franchising is regulated. Article 62 of the Retail Trade Act (Ley 7/1996) defines the franchise and sets the pre-contract disclosure duty, and Royal Decree 201/2010 develops the detail, especially the information a franchisor must give before signing. Beyond disclosure, the franchise contract is governed by general civil and commercial law and by EU and Spanish competition law, so the written terms largely decide the commercial relationship between the parties.
How far in advance must a Spanish franchisor disclose?
At least 20 days before signing the franchise agreement or any pre-agreement, and before the prospective franchisee pays anything, the franchisor must provide truthful, non-misleading, franchisee-specific information in writing. Some sources read the period as 20 working days rather than calendar days, so the exact count should be checked against the text of Royal Decree 201/2010. Either way, delivering the information in good time and keeping dated proof is the key compliance step.
What must a Spanish franchisor disclose before signing?
Royal Decree 201/2010 lists the required items. They include the franchisor's identity and registration details, proof that it holds the relevant trademark and intellectual property rights, a description of the business and the sector in which it operates, the structure and size of the franchise network, and the essential elements of the franchise agreement. The information must be truthful and not misleading and must be specific to the prospective franchisee rather than generic marketing material.
Must a franchise be registered in Spain?
No. Registration of the franchise agreement or the trademark licence is not a mandatory condition for the franchise to be valid, and the former national franchisor register is no longer a mandatory requirement to operate. The real legal obligation is pre-contract disclosure, not registration. Franchisors should therefore focus on delivering complete, accurate information at least 20 days before signing, rather than treating any registration step as the thing that makes the franchise lawful.
Are franchise non-compete clauses enforceable in Spain?
They can be, if they are proportionate. Vertical restraints such as territory limits, pricing terms and non-compete clauses are judged under the EU vertical block exemption and Spanish competition law. Resale-price maintenance is treated strictly, and a post-term non-compete must be limited in duration, geographic area and scope of activity to be enforceable. An overbroad restraint risks being void in whole or in part, so these clauses should be drafted narrowly and reviewed against current competition-law practice.
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