Legal guide to franchise agreements in Spain: Law 7/1996, Royal Decree 201/2010 (Franchisor Register), mandatory pre-contractual information, entry fee, royalties, non-compete covenant and grounds for termination.
Spanish franchise law is governed by Art. 62–63 of Law 7/1996 and Royal Decree 201/2010. Key obligations include: (1) mandatory pre-contractual disclosure document (DIP) 20 days before signing; (2) registration of the franchisor in the Register of Franchisors; (3) compliance with EU Regulation 2022/720 on vertical restraints (market share <30% for territorial exclusivity; post-contractual non-compete limited to 1 year at the business premises).
Lack of adequate DIP can trigger contract nullity (STS 1ª 14 July 2017 and STS 1ª 501/2025). Unlike agency contracts, there is no automatic goodwill compensation on termination.
Lexiel verifies the Registro de Franquiciadores, locates Supreme Court franchise decisions and drafts DIP audits and termination notices with verified citations.
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