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From Brand to Global Market: Spain’s Franchising Experience and New Opportunities for Iranian Companies

Exploring business expansion models, entry into the Spanish market, financing, women’s entrepreneurship and the resilience of business networksPrepared and analysed by the Secretariat of the Iran–Spain Joint Chamber of Commerce

Franchising: An Alternative Route into Business

Entering a new market involves important decisions, whether for a company pursuing international expansion or an entrepreneur planning to establish a business abroad. These include choosing the right sector, understanding customers, securing investment, finding suitable premises, meeting regulatory requirements and building trust in the market.Starting a completely independent business is not the only option. Working with an established brand and adopting its proven business model can also provide a route into a new market.This approach, known as franchising, is based on a contractual relationship between a brand owner and an investor or business operator. Under agreed conditions, the franchisor grants the franchisee the right to use its brand name, operational know-how, service standards and business management methods.In many franchise networks, this relationship also includes staff training, management support, assistance with site selection, product supply, marketing and quality control. In return, franchisees are generally required to invest capital, comply with operating standards and pay the fees specified in their agreements.Understanding this model is particularly relevant to members of the Iran–Spain Joint Chamber of Commerce. Iranian companies may explore partnerships with Spanish brands, businesses already operating in third countries may identify opportunities to expand their networks, and Iranians living in Spain or considering establishing a business there can assess franchising alongside other investment options.This article draws on three initiatives organised by the Spanish Franchise Association (Asociación Española de la Franquicia – AEF): a 2022 legal webinar on franchising in Spain and the United Arab Emirates, the presentation of the report “Women in Franchising 2025”, and the 2025 National and European Franchise Awards.

How Does Franchising Differ from Running an Independent Business?

In an independent business, entrepreneurs generally develop most aspects of their business model themselves, from the brand name and identity to operating procedures, suppliers, marketing and employee training. In a franchise, much of this structure has already been developed by the brand owner, allowing investors to join a network that may have experience operating across several cities or countries.This does not necessarily make franchising the better option. Independent entrepreneurs enjoy greater freedom over products, pricing and business operations, while franchisees must generally follow contractual standards and restrictions. In addition to the initial investment, a franchise may involve recurring royalty payments, contributions to advertising costs and obligations to purchase from designated suppliers.

Lessons from Spain and the UAE: Expansion Requires Legal Understanding

On 14 June 2022, the Spanish Franchise Association organised a webinar entitled “Franchising in Spain and the United Arab Emirates: Legal Perspectives, Opportunities and Challenges”. Participants included Eduardo Abadía, Executive Director of AEF; Sandra Carrillo of GNF Worldwide; Lourdes Ayala of Bird & Bird; and Melissa Murray, a specialist in intellectual property and franchise law in the Middle East.A business model that succeeds in its home country cannot necessarily be introduced into another market without adaptation. Intellectual property rights, territorial exclusivity, contractual obligations, product sourcing, termination provisions and dispute resolution mechanisms all influence the feasibility of international franchise arrangements.For Iranian companies, the lessons extend beyond the UAE. They raise essential questions that should be addressed before entering into franchise partnerships in other countries. Having a company registered in a third country does not, in itself, guarantee eligibility for a franchise or remove legal and banking restrictions.

Franchising for Iranians Interested in Doing Business in Spain

For many Iranians living in Spain, as well as those considering business activities in the country, starting a company raises several questions: which sector to invest in, how Spanish consumers behave, how much capital is required and how to organise operations without previous experience in the local market. Franchising may be an option worth exploring, particularly for individuals with sufficient financial resources and management experience who prefer to operate within an established business network.Eroski, the Spanish food retail group, received the award for Best Food Franchise at the 2025 Franchise Awards. The network operates more than 600 franchised stores, including 171 managed by entrepreneurs representing 20 nationalities. Its announced support services cover various stages of business development, from finding suitable premises and preparing a business plan to opening a store and establishing its operations.Purchasing a franchise or registering a company in Spain does not automatically guarantee residency, work authorisation or the renewal of an existing residence permit. These matters must be assessed separately under the applicable immigration regulations.

Knowledge Transfer and Support: The Real Value of a Franchise Network

Kids&Us, a children’s English-language education network and winner of the Best Services Franchise award, has more than 700 centres across 13 countries and over 190,000 students. More than 35% of its franchisees operate multiple centres. In networks of this kind, the value of the partnership goes beyond the brand itself. Teaching methods, training systems, operational standards and support structures are equally important.La Fresería, a brand specialising in chocolate-covered strawberries, was recognised as an emerging franchise. Since 2023, it has expanded to more than 45 stores and entered the Portuguese and French markets. Japanese Head Spa received the International Franchise of the Year award. The network operates 75 centres in 13 countries, with its international expansion managed from Colombia.

Women in the Spanish Franchise Sector

On 8 July 2025, the Spanish Franchise Association presented the third edition of its report “Women in Franchising” (La mujer en la franquicia 2025) in Madrid, with the support of Banco Sabadell. According to the report, women account for 33.7% of franchisees and hold 33.31% of management positions in franchisor companies.Luisa Masuet, President of AEF, highlighted motivations such as financial independence, professional ambitions and achieving a balance between personal life and business activities. At the same time, access to finance, limited specialised training, administrative difficulties and family responsibilities continue to affect women’s entrepreneurial journeys. These priorities are closely aligned with the objectives of the Women Entrepreneurs Committee of the Iran–Spain Joint Chamber of Commerce.

Financing, Innovation and Resilience

Banco Sabadell received a special award for its services to the franchise sector, recognising its specialised financial products for franchisors and franchisees. The initial franchise fee is only one part of the overall investment. Premises, rent, staffing, inventory, marketing, taxes, insurance and working capital must also be taken into account. The availability of specialised financial services does not mean that every investor will automatically qualify for bank financing.The experience of Alain Afflelou in optical and hearing care services illustrates that franchise expansion is not simply about increasing the number of outlets. Digital tools, online appointment systems and e-commerce also contribute to a network’s competitiveness. At the same time, franchising does not automatically guarantee business resilience. Dependence on the brand owner, contractual obligations and regulatory changes can introduce additional risks.

Three Opportunities for Chamber Members to Explore

• • Establishing a business in Spain: An option for Iranian residents and those interested in economic activity in the country, alongside starting an independent business or acquiring an existing one.

• • Partnerships in third-country markets: Iranian companies with a lawful presence in other countries may explore acquiring franchise rights or participating in the expansion of Spanish brands.

• • Expanding Iranian brands: Standardising business models and developing them through contractual networks, with an emphasis on training, quality control and effective support systems.

Before choosing a franchise, prospective investors should clearly understand the nature of the partnership, required capital, franchise fees, training services, marketing obligations, product sourcing arrangements, territorial rights and contract termination conditions. Speaking with existing franchisees and reviewing the performance of operating outlets can also provide valuable insight.

Carrefour Express: The Experience of an Iranian Woman Entrepreneur in Madrid

Engineer Zahra Fallah Majelan, Vice President of the Iran–Spain Joint Chamber of Commerce, established and managed a Carrefour Express store near the Iranian Embassy in Madrid under a franchise agreement.What makes this experience particularly valuable is the opportunity to turn practical business knowledge into guidance for prospective entrepreneurs, covering the franchise application process, store establishment, day-to-day management and investment considerations. Providing such advice does not constitute official authorisation to grant franchises on behalf of Carrefour, nor does it guarantee approval of an application. Franchise agreements remain subject to the brand owner’s requirements and approval.

Franchising: An Opportunity for Business Growth, Not a Risk-Free Solution

Spain’s franchising experience demonstrates how business expansion can be built on contractual cooperation, knowledge transfer, standardised operations and the strengths of established commercial networks. For members of the Joint Chamber, this experience offers three areas of interest: partnerships with Spanish brands, opportunities in third-country markets and establishing businesses in Spain itself.The value of franchising lies not only in a recognised brand name but also in access to operational expertise, management standards and market experience. Final investment decisions, legal reviews of franchise agreements and financial assessments of individual projects remain the responsibility of applicants and their professional advisers.Full article: Read on TelegraphSecretariat of the Iran–Spain Joint Chamber of Commerce