Hitler wanted Franco to take Gibraltar, but Franco refused.
Franco knew he had to do some things to keep Hitler from turning on him, in the end, the alternative would have been full-blown Nazi occupation.
Hitler wanted Spain in the war so that Germany could take Gibraltar. Franco refused to do that.
Franco knew he had to do some things to keep Hitler from turning on him, in the end, the alternative would have been full-blown Nazi occupation.
I doubt that was ever a real possibility. Hitler had other plans and he knew that Franco wasn't going to cause trouble regardless.