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Licenses in the opening of franchises

Licenses in the opening of franchises

Published in Mundo Franquicia , 17 - July , 2019 abogados franquicias Overview franchises

On the importance of proper management of planning and administrative licenses in the Franchise Expansion.

We often find that there is no proper management of the processing of administrative licenses necessary for the opening of a franchise establishment.

This happens either because the franchisor only gives some general indications about the licenses that the franchisee must obtain for opening, delegating this task to the subcontractors that will carry out the work, or directly to the franchisee.

The complex legislation that exists in Spain on the necessary licenses to be able to open an establishment, apart from hindering the growth of the sector, can be a real nightmare for a franchisee.

We are still far from a common urban regulation at the regional and local level; although Royal Decree-law 19/2012, of 25 May, on urgent measures to liberalize trade and certain services was an important step forward, it is necessary to continue moving forward in a standard model for all of Spain. For practical purposes there is currently a different regulation in each City Council, together with the disparity of criteria that may have the officials responsible for processing each file.

And this as a franchisee, how does it affect me?

Unfortunately, it is common to consider obtaining the licenses as one more item of the investment to be made, and it is not taken into account that if they are not managed correctly we will find delays in the openings, modifications in the premises, to be subsequently made to the opening, increased costs and in the worst cases, sanctions and closures. Let's not be afraid that we can present a prior communication or a responsible statement: let's make sure before that what we present will comply.

Therefore, before signing the purchase or lease of a local, both the franchisor and the franchisee, must have a correct individualized study for each location that must contain both the licenses to obtain, all technical requirements, which must be met by the local its procedures and times and of course the cost. The carrying out of this study previously, making the necessary consultations, with the municipalities and administrations that are competent, will save time, money, and above all dislikes.

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