Premises and licences when franchising a business in Spain

A business that works in one property cannot automatically be replicated in another. When franchising in Spain, the planning, technical and administrative requirements for each site can affect the investment needed and delay opening. To build a strong franchise network, make assessing premises a formal step before entering into financial commitments that are difficult to reverse.

1. Define what your premises actually need

Before looking for locations, separate commercial preferences from essential requirements. An attractive frontage may help drive sales; an extraction flue, where required, may determine whether the business can operate at all.

Prepare a premises specification with three levels:

• Essential requirements: usable floor area, accessibility, electrical capacity, ventilation, emergency escape routes, sanitary facilities or storage conditions required for the activity.
• Commercial criteria: visibility, pedestrian access, loading and unloading options, and proximity to your target customers.
• Adaptable elements: internal layout, finishes or furniture options that allow alternatives without compromising the customer experience.

Do not simply copy the features of your existing premises. They may have installations that are difficult to replicate, approvals tied to particular conditions or advantages that another property will not offer.

Commission a suitably qualified technical professional to turn this specification into verifiable criteria. The result should allow you to rule out a property before paying for full design work, making non-refundable payments or committing to an opening date.

2. Check feasibility before committing to a lease

The franchisor’s commercial approval is not the same as approval from the relevant authorities. Nor is it enough for the landlord to say that the property “has a licence”. You need to check which activity it covers, under what conditions and what procedures the proposed change requires.

For each shortlisted property, arrange a document review and a technical site visit. Check, as applicable:

• Whether the activity is permitted under local planning rules and whether any restrictions on use apply.
• The premises’ history of licences, declarations of compliance and building works.
• Accessibility, fire safety, noise and ventilation requirements.
• Any approvals needed for signage, outdoor seating areas, façades or shared parts of the building.
• Building restrictions and whether consent is needed from the landlord or the owners’ association.

In Spain, procedures vary by autonomous community, municipality and business activity. There is no single national licence that allows every outlet in a franchise to open. Where a declaration of compliance (declaración responsable) is the appropriate procedure, submitting it does not remove the obligation to meet the requirements or prevent a subsequent inspection.

Before signing the lease, take legal advice and negotiate how to handle the possibility that the premises prove unsuitable. Conditions, periods for carrying out checks or termination rights can be agreed, but they must be expressly set out in writing. A verbal promise to refund a holding deposit offers far less protection.

3. Allocate responsibilities without promising approvals

Franchisees generally manage their own premises, but that independence is no reason to leave responsibilities unclear. Prepare a matrix identifying who requests documents, appoints the technical professional, makes submissions, pays fees and checks that the opening requirements have been met.

Distinguish between three decisions: approving the commercial location, approving the design against the franchise concept and confirming technical and administrative compliance. The franchisor can take responsibility for the first two without replacing the qualified professional or the relevant authorities.

The contract should specify the premises approval process, response times and the consequences if a proposed location is rejected. It should also clarify who bears the cost of adapting the property and how changes to the design are authorised.

Franchising is specifically regulated in Spain: Article 62 of Law 7/1996 on the Regulation of Retail Trade and Royal Decree 201/2010 establish its framework and pre-contractual obligations. Information must be provided in writing at least twenty working days before a contract or preliminary agreement is signed, or before any payment is received from the prospective franchisee. Investment estimates should reflect foreseeable adaptation work, rather than presenting a generic budget as a fixed price.

Royal Decree-Law 20/2018 also removed the national obligation to notify the Franchisors Register. That register should not be confused with the procedures that remain necessary for each individual outlet.

4. Approve opening on the basis of evidence, not expectations

Create a file for each location containing reports, approved plans, an updated budget, consents and supporting administrative documents. Record outstanding issues and who is responsible for resolving them.

Schedule the opening once the applicable legal and operational conditions have been met. Do not let an advertising campaign force you to open with incomplete documentation. If the building works or intended use change, ask the technical professional to review whether the submissions already made need to be amended.

Practical conclusion: before committing to new premises, require three documented checks: commercial suitability, technical feasibility and a clearly defined administrative process. This protects the franchisee and supports responsible growth across the franchise network.