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It's a good thing that the Habsburg Family is not participating in the struggle for the throne; standing on the sidelines allows one to make the most advantageous decisions.
Moreover, the Kingdom of Spain is currently a hotbed of trouble, and it won't be easy to resolve the internal issues.
Throughout history, subjects have shared a common problem: they do not like a strong Monarch. Europe's succession systems are well-established, giving them little room to exert influence.
This time, the selection of a Spanish King is different; an outsider King cannot do without the support of the local power factions, so the new King of Spain will most likely be an inept ruler.
Having already produced an unfortunate Emperor of Mexico, Franz seriously doubted how much of the Habsburg Family's glory would remain if another incompetent King were to emerge.