We are a firm of specialist lawyers in distribution and franchise law.
Our work in the area of Franchises and Distribution, leads us to assist and advise, both judicially and extrajudicially, to numerous franchising companies and also franchisees, having been part of the Committee of Legal Experts of the Spanish Association of Franchisors and having carried out the Legal Advice of the Aragonese Association of Franchisors.
Our extensive experience has been rewarded internationally resulting in our office
lawyer chosen by Corporate INTL Magacine LEGAL AWARD 2010 in the category
"Office of the year in Spain in Right of Distribution and Franchising"
Everything you always wanted to know about franchises and were afraid to ask
Published in Ifema
, 07 - October , 2022 
Overview franchises
In our country, this business model continues to grow at a good pace, consolidating itself and leaving positive turnover figures.
To franchise or not to franchise, that is the question. Those who are thinking of entering the business world usually face this dilemma: invest their capital in their own brand and start from scratch, but with total autonomy in management, or open a franchised establishment and stick to the 'established script' always backed by a well-known and prestigious brand.
The answer is not easy and depends on many factors, although if we look at the data provided by the Spanish Association of Franchisors (AEF) in its report The franchise in Spain 2020: “at the end of 2019 there were a total of 77,819 stores operating in Spain , of which 19,787 were of their own nature and the remaining 58,032, franchisees”. A business model, that of franchises, which in our country continues to grow at a good pace, consolidating itself and leaving positive turnover figures: "It has gone from the 11,421 million euros recorded at the end of 2001 to 26,154.3 million euros 2019, that is, 14,733.3 million euros more”.
As in any business project, there are pros and cons when it comes to franchising, however, experts highlight as advantages, beyond the popularity of the brand, having technological, marketing and advertising support and that, As it is a business tested in advance, a priori the possibility of the establishment being a success is greater. In fact, it is often said that the franchise is the cheapest way to open a profitable business: the franchisee pays the entry fee, the advertising fee and the royalty, but does not pay for beginner mistakes.
"The franchisor has more data and can more accurately assess the market situation, anticipate trends, better than a new franchisee or one with limited experience in the sector," confirms Juan Álvarez-Bolado, Director of Risks at Banco Santander in Spain. , who among the benefits of a franchise compared to a conventional business highlights precisely the know-how: "The franchising company knows the sector, the geographical area, how the business is managed more efficiently... In other words, it brings you all its experience in the activity that is just what the entrepreneur does not usually have”.
