Spanish Legal System on Disclosure in Franchise Networks: Problems and Proposals for an Improved Regulation

Abstract:

Spanish law obliges franchisors to be transparent in their dealings with potential franchisees in two ways: by imposing upon them the duty to provide certain pre-contractual information and by requiring them to register in the Franchisor Registry. This paper will give the reader an overview of the concept of Franchise and the legal framework within which it must be understood. It will go on to explain the conditions and the administrative requirements that franchisors must comply with as a consequence of the introduction of the Franchisor Registry. And, finally, will consider the pre-contractual obligation of franchisors to disclose information to prospective franchisees and conclude with a brief critical analysis of how these questions are regulated in Spanish law.