Spain relaxed registration requirements for EU Franchisors
22 June 2010
The Spanish Retail Management Act of 15 Jan 1996 requires
franchisors to register at the relevant local or regional franchise
registry. Failure to register can lead to hefty fines and bad
publicity. The registration process needs to be complied with,
within 30 days of having started business activities and is managed
by the registry of the different autonomous communities that exist
within Spain.
Until recently all franchisors had to submit the following
information:
- Corporate Details of the franchisor (company name, domicile,
incorporation certificate, tax registry number)
- Description of the relevant IP rights together with
certificates of ownership or licensing agreements
attached.
- Description of the franchised business including detail of the
number of franchisees and corporately owned outlets.
With effect from February 2010 franchisors from European Union
member states who operate within the free movement regime and are
not permanently established in Spain are exempt from these detailed
filing obligations. Their only obligation will consist in
communicating to the Registry by simple letter the start of
their activities in Spain.
EU franchisors which have a permanent establishment in Spain
still need to register, but the process of registration has been
simplified. Rather than having to put together a bible of
information and translate it into Spanish, a simple new
registration form will soon be available for applications for
franchisors based in Spain. This new registration form is not
available yet, but it is expected to be ready shortly.
Both changes are good news for franchisors and should facilitate
the process of cross-border franchising within the EU.
For more information on franchising in Spain or the registration
procedure, please contact Mark Abell, Babette
Märzheuser-Wood or Chris Wormald at Field Fisher
Waterhouse LLP.