I have a few small Spanish Lavender, I have been asking the same questions.
From what I have read, if you deadhead them (only to the first few leaves) then it will encourage new growth and possibly a second flowering!
I have just deadheaded mine, to get the extra growth and more flower!... basicly it's all about what you're after. I want a bushier plant so I have cut the heads back, I have left about 3 flowers and will cut them back once they have finished flowering!
Good luck
Dave
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