Eb5 and Investing in a Franchise

EB-5 Immigrant Investor Program helps investors and their families by making them eligible to apply for a Green Card (permanent residence) if they make the necessary and substantial investment in a commercial businesses and plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers. Enacted by congress, this program helps grow the economy by creating jobs and capital investments by foreign investors. “EB-5” is essentially and immigrant investor program that has become an increasingly substantial source of investment within the United States as it creates a great number of jobs. The purpose of this specific visa program is to create more jobs which is why it is not a visa for everyone, but for those who have a mission to build and maintain economic growth within the United States through investing. It is the only visa program created in order to allow residence within the United States for foreign investors.

America is known as the “land of opportunity” and is built off of small businesses and well-known franchises. EB-5 investments are a common way of creating and increasing capital for the expansion of American franchises. Franchising has been proven over the years to create great economic impact. Although the investment level has increased from $500,000 to $900,000, the qualified investor has the ability to purchase multiple locations of the franchise which only increases its economic success.

As franchises generally have a uniform model nationally and internationally, if it already has a fixed estimate for the number of employees mandatory in order to operate one location, the investor can depend on the existing business model in creating ten new jobs.

Franchises are often capitalized well and are typically able to provide established and credible products and services. Franchisees benefit by gaining high scale in key markets and recognition across the nation with brand-name franchises, which would typically take years to establish. Successful business launches of new businesses in the franchise world consist of training, grand-openings, financing, etc. In order to keep the franchise successful on a long-term basis, there must be ongoing support in terms of advertising, management support, discounts with authorized vendors, etc. In cases where the franchisor has various locations, there must be management support in order to run and efficiently operate these various locations.

It is advisable to seek legal guidance from our immigration office today as we strive to help guide you with your specific case. 

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