Buy a Franchise
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In the USA today the franchising business model is very popular in many industries.
There are thousands of franchised businesses, which can be seen in every shopping plaza or mall through some of the most familiar brands. Some of these franchises have been in business for over fifty years.
The longevity of these brands is solid proof of an effective business system that really works.
For Americans buying a franchise represents an opportunity to take control of their economic future. For International investors it provides an opportunity to live and work in USA.
Investor visas, such as: EB-5 and E-2, offer immigration opportunities for International entrepreneurs and their families who are seeking to immigrate to United States through investing in a business.
What is a franchise?
Franchising is a business model in which many different business owners share the same brand name. Opening a franchise means buying a working business model in a particular industry.
The franchise business model consists of two business partners: the franchisor, or parent company, and the franchisee, the proprietor that operates the business.
A parent company allows the franchisee to conduct the business under their trade mark and trade name and also provide them with an operating system, brand and support.
The parent company provides the franchisee with support, advertising and training, as part of the franchising agreement.
A franchise re-sale is an established franchise business that is for sale.
Advantages of the Franchising Model
Franchising may be the key to success for a small business owner because it offers a tested and proven business model.
There are many benefits to buying a franchise resale including established system of operation, corporate support, detailed marketing plans, technology, long – standing training program, tools and a brand presence.
For foreign entrepreneurs who are interested in immigrating to the USA and considering opening a small business, but are unsure how to start, operate and survive in US competitive market, buying a franchise could be an easiest way of doing it.
Buying a franchise versus starting your own business
Some entrepreneurs wonder if it is better to buy a franchise or start a new business.
Franchising eliminates many of the risks and challenges the foreign entrepreneurs will face by starting up a new company in a new country.
It can be difficult for foreign entrepreneurs to assess their business options when moving into an unfamiliar environment, especially when they are trying to understand the US market needs, consumer tastes and expectations.
For foreign entrepreneurs starting a new business in US and adapting to new culture and a different language can be difficult, so having a proven turnkey model significantly increases the chances of success.
Franchise brands offer a proven system for operating the business and generating profits, training and continued support from the franchisor, so the entrepreneur does not need to be an expert in the business to succeed.
An established franchise will have a higher overall chance of survival than a start-up business.
Buying a franchise could be one of the best paths for an entrepreneur and his family to immigrating to the U.S.
E-2 Investor Visa
An E2 visa is the unique program to legally live and work in the USA through the business ownership.
An E-2 Investor Visa allows foreign investors from countries that the U.S. has a Treaty with to enter and work in the USA by investing in a business.
E-2 Visa is the best visa option for some foreign investors who might not have a lot of money and time to invest in getting an EB-5 visa, which requires to invest at list one Million dollars and a lengthy waiting period for approval.
Initial E 2 visa may last for up to five years with unlimited extensions.
The E-2 visa can be extended almost indefinitely, as long as the investor meets the requirements for the E-2 visa. This means that the treaty investor may be able to have his E-2 visa renewed as long as the visa holder maintains the investment.
Additionally, the E2 Visa has the advantage of allowing an Investor’s spouse and children to reside the U.S A. The investor’s spouses may work in any field upon receiving an employment authorization.
What is the “substantial amount” to Invest for an E2 Visa?
The E-2 Investor must demonstrate that a substantial investment of personal funds has been invested in the business enterprise and will be dedicated to the business development.
In order to qualify for E-2 Visa, the investor must buy a business that he plan to run, make a “substantial investment” and create jobs for US workers.
Franchises are ideal investments for qualifying for E 2 visa because the franchise create job openings for US citizens.
There is no set minimum investment to qualify for this program.
The investment amount depends on the type of business and shall be large enough to ensure that the investor is dedicated to the financial success of the operation.
In general, to qualify for E-2 visa the investor should have a minimum of $100,000 USD towards their business investment.
Benefits of Investing in a Franchise for E-2 visa
Buying a franchise with a proven successful business model puts an investor in a great position for qualifying for E-2 visa program.
Franchise makes it easier for the immigration officials to identify the validity of the business.
Established franchise is likely to be perceived more favorably over a start-up unknown business and increases the investor’s chances of having their application accepted by US immigration officials. Immigration officials are readily familiar with a franchise concept, unlike a new, unproven business.
By partnering with a franchisor the investor will be able to effortlessly provide immigration officials with required documentation for E-2 visa, such as: complete business plans, operational manuals, forecast and extensive histories of success.
Creating these documents on your own can be difficult and very expensive.
Acceptable for E-2 visa investment amount is generally lower with a franchise than a start – up business.
Immigration officials carefully review the previous experience of the E-2 visa applicant. If applicant is buying a franchise his previous business experience is not important, as the franchisor provides the experience.
Franchises are great choices to qualify for E2 visa for the following reasons:
- Franchises are definitely real businesses.
- The investor is buying a proven operational system.
- The franchise provides a built-in support system.
- Name recognition.
- Easier to start.
- Have a higher chance of success.
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Buy a Franchise Wiki Info:
The E-2 Investor Visa allows an individual to enter and work inside of the United States based on an investment he or she will be controlling, while inside the United States. This visa must generally be renewed every two years, but there is no limit to how many times one can renew. The investment must be “substantial.” Investor visas are available only to treaty countries, which include countries like Albania and Senegal, but do not include Brazil, Russia, India and China. E-2 visas are also available to non-investor employees of the business, as long as the persons are of the same nationality as the investor and are destined for a role in the US business that is either executive/supervisory or requires specialized skills that are essential to the efficient operation of the US enterprise. 
For new startups, the investment must be large enough to start and operate the business. The amount of investment varies on the type of business. The investment will not be considered substantial if it is not large enough to capitalize the venture. The USCIS will use an ‘Inverted Sliding Scale’ to determine whether the investment is substantial in proportion to the overall cost of the enterprise.
Spouses and unmarried children under 21 years of age, regardless of nationality, may receive derivative E-2 visas in order to accompany the principal alien. The duration of visa for a family member who is of a different nationality from the principal is determined by any reciprocal agreements between their country of nationality and the US. Only if there is no such reciprocal agreement will the duration be the same as the principal applicant. Dependents may seekemployment in the US by applying for employment authorization using Form I-765, Application for Employment Authorization. Children under 21 cannot apply for work; only the spouse of the E-2 holder can.
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