Underneath the Golden Boy - Robson Hall Faculty of Law

Franchise Legislation and Associations Around the World 377
and business environment for the expansion of franchising in Russia. 112 The
Association has incorporated a Code of Ethics that applies to the relationship
between franchisor and franchisee as well as between master franchisee and
franchisees. However, it does not apply to the relationship between the
franchisor and its master franchisee. 113
10. Spain
Franchising in Spain has experienced a steady incline in recent years. A study
conducted by the Spanish Franchise Association (“AEF”) reveals that, by the
end of 2005, there were 712 franchise brands in Spain, an increase of 63 brands
from 2004. Furthermore, out of the 712 brands registered in 2005, 80 percent are
Spanish, and the rest hail from other countries, including France, the United
States and Italy. 114 Franchise is governed in Spain by Article 62 of Spanish Act
7/1996 on the Regulation of Retail Trading (Article 62) and the Royal Decree
2485/1998 of 13 November which contain accompanying rules and regulations.
The Ministry of Economy and Finance is the Spanish regulatory authority
responsible for administering portions of, and enforcing, Spanish Franchise
Law. 115
Article 62 defines the franchise system. It states the principle that
franchisors in Spain or wishing to enter the Spanish market must register in
special franchise registers (federal register for foreigners, regional national
franchisors). 116 The Article also establishes that a franchisor must disclose to a
potential franchisee, in writing, at least 20 days prior to the signing of any
franchise agreement or pre-agreement or prior to any payments related to the
franchise, all necessary information to facilitate making a well-informed
decision. 117 The Royal Decree 2485/1998 complements Act 7/1996 by
112
Russian Franchise Association, “About the RFA,” online: About the RFA
.
113
Russian Franchise Association, Code of Ethics, online: Code of Ethics
.
114
Spanish Franchise Association (“AEF”), “El Sistema de La Franquicia Facturo 17.909 Millones
de Euros en 2005, un 12% Mas,” online: Datos del Sector
.
115
Frank Zaid and Kendal Tyre, supra note 29 at A-11.
116
European Franchise Federation, “Spain – Legislation Specific to Franchising,” online: Self
Regulation and Regulation – Regulation at National Level
[EFF, “Spain Legislation”].
117
Spain, Act 7/1996, online:
at Article 62 [Spain, Act 7/1996].