These 2 Visas Can Open Doors for Global Entrepreneurs to Franchise in the U.S.

Consider nan franchises you are astir acquainted pinch — possibly it's a section salon, adjacent edifice aliases location work business. They apt person easy recognizable names and branding that you tin conjure without overmuch effort. It's nary wonderment that 70 of nan apical 100 franchises are U.S.-based.

As a business model, franchising is often synonymous pinch "local" and "regional" brands owed to a whopping 80% of franchises that autumn wrong this category. However, that doesn't mean franchising does not pull aspiring entrepreneurs from astir nan world. In fact, location are 2 visa programs that connection paths to franchise ownership (and different mini business ownership) and ineligible position successful nan United States: nan E-2 visa and nan EB-5 visa.

As a franchise consultant, I person worked pinch a number of foreign nationals who want to unfastened a business successful nan U.S. while gaining ineligible status, truthful I took a dive into learning much astir these visa options. I do not supply immoderate benignant of ineligible proposal to candidates, and those willing successful ineligible requirements for nan E-2 and EB-5 visas should consult an attorney.

Let's return a look astatine some of these visa options to get a birdseye knowing of what they mean, nan first baseline requirements for each and why they are comparatively difficult to travel by.

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E-2 classification

According to nan U.S. Citizenship and Immigration Services, an E-2 Treaty Investor is simply a "nonimmigrant classification" that "allows a nationalist of a pact state to beryllium admitted to nan United States erstwhile investing a important magnitude of superior successful a U.S. business."

General qualifications for E-2 visas include, arsenic mentioned, being a nationalist of a state that has a opinionated pact pinch nan United States. In addition, an individual must put (or beryllium successful nan process of investing) a "substantial magnitude of superior successful a bona fide endeavor successful nan United States" which includes nan full costs of an "established enterprise" — specified arsenic a franchise — aliases nan full costs of establishing a caller enterprise. Lastly, nan individual must show that they activity to participate nan U.S. solely to create this enterprise. E-2 visa holders are not capable to execute immoderate activity extracurricular of their approved E-2 interests.

It's important to understand that this action is not a way to a Green Card aliases U.S. citizenship and requires an finance of clip and money to qualify. This type of visa is considered to beryllium employer-sponsored and individuals cannot use for this visa while extracurricular of nan United States. Furthermore, nan E-2 is approved successful two-year increments (though applicants tin reapply each 2 years indefinitely) and nan classified individual is only capable to unrecorded and activity successful nan United States for arsenic agelong arsenic their business is operational.

Note: A pact state is "a state pinch which nan United States maintains a pact of commerce and navigation, aliases pinch which nan United States maintains a qualifying world agreement, aliases which has been deemed a qualifying state by legislation." For a afloat database of pact countries and a history of nan dates each pact was made, spot this U.S. Department of State website.

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EB-5 classification

In nan early 1990s, nan United States developed nan Immigrant Investor Program which created opportunities for overseas individuals to put successful U.S. based companies successful bid to stimulate nan economy. Through this initiative, nan EB-5 visa was created to let foreigners, who are capable to comply pinch nan requirements, to go business owners successful nan United States.

Unlike nan E-2 which is simply a "nonimmigrant classification" and is truthful not a way to American citizenship, nan EB-5 Immigrant Investor Program is. Because of this, an EB-5 visa is not employer-sponsored, it is substantially much difficult to get and has respective stringent requirements that fewer individuals tin suffice for.

As nan EB-5 section of nan U.S. Citizenship and Immigration Services website indicates, individuals "are eligible to use for lawful imperishable residence (become a Green Card holder) if they" tin first, "make nan basal finance successful a commercialized endeavor successful nan United States" which was updated successful 2022 to beryllium a minimum of $1.05 million; and second, if they "plan to create aliases sphere 10 imperishable full-time jobs for qualified U.S. workers." In essence, these 2 minimum qualifications see a ample financial finance arsenic good arsenic occupation creation wrong your enterprise.

While location is nary fixed headdress for nan number of EB-5 classifications that tin beryllium granted, nan mean yearly number of visa holders is astir 10,000.

Related: Location Is Everything — Especially successful Franchising. These Are nan Territory Rules You Need to Know.

As you tin imagine, these 2 visas are not peculiarly easy to suffice for arsenic an mean overseas investor. However, for those who are capable to spend nan superior investment, location are a fewer options for business ownership. One of these is franchising.

Why is franchise ownership a viable option? As a business model, franchising doesn't only person a model and blueprint for really to tally a profitable business, but it besides has nan backing from a registered genitor company. Therefore, a ample information of legwork and business start-up mentation has already been completed, not to mention nan support strategy of different franchisees nether nan aforesaid brand.

Franchising tin besides beryllium a measurement to commencement a business that is culturally aligned pinch request trends for a overseas nationalist who has not spent important clip successful nan country. It besides tin beryllium a recognizable marque sanction and business exemplary for officials who are approving nan business for visa purposes.

While franchising is by nary intends nan only action for E-2 and EB-5 visa holders, it's an avenue worthy considering for overseas nationals seeking ways to put successful a U.S. business and summation ineligible status.