Here are 5 reasons to invest in a franchise for your E2 visa. We believe the reasons are very compelling.
In the previous blog post, we have been exploring why to invest in a franchise to get an E2 or an EB-5 visa. Let’s focus on the E2 visa specifically. The attached infographic above shows some interesting information regarding the E2 visa. The E2 visa is an investor visa, that as we are writing this blog, does not give access to citizenship. So it’s a non immigrant visa. Things might change in the future. A new bill will be introduced next week by David Jolly, Florida representative of the 13th congressional district, that proposes to give access to citizenship with an E2 after 10 years.
For the visa to be granted a certain number of conditions have to be fulfilled, the major ones are :
- the requestor need to hold a passport from a country that has signed a friendship and trade treaty with the US. You can find more information here. This list is evolving. Most of European countries, including some from eastern Europe are part of the list, some of the major countries excluded are China, Russia, Israel, Brazil.
- The investment has to be substantial. There is not a specific sum that has to be invested though. This means the business plan and the rationale are very important.
- The investor has to have a skin in the game : his participation in the venture has to be more than 50%.
- He needs to be personally involved in the business
- It has to be a real business and the business has to be viable. This is also one of the conditions that will be scrutinized when renewing the visa, so it is important to pick the right business.
So how are franchises a good fit for an E2 visa ?
- they are obviously real businesses. If the brand is known and has some popularity that really helps the immigration official understand what this business is.
- Franchises need to disclose very clearly the expenses that will be incurred in the starting and running the franchise. That simplifies writing the Business Plan.
- Although not all franchises disclose earning claims in the Franchise Disclosure Document, it is actually possible figuring that out during the franchise discovery process. So the Business plan can be established and be a very close representation of what the business can earn.
- Franchises provide training and support, so one does not need to be an expert in the business to succeed. Immigration officials review carefully the background and the experience of the E2 requestor. Obviously for a franchise this is not that important, as the franchisor provides the experience.
- Finally a franchise provide a proven path and a model to follow for success. Starting a business can be challenging. Starting a business in a new country can be overwhelming. A new culture, a different language can be difficult to deal with, so having a turnkey business and continued support from the franchisor, increases the chances of success.
If you would like to know more about investing in a franchise and getting an E2 visa, contact us.