The Power of Buying a Franchise Business
The US actively promotes foreign investment by way of its E2 Treaty Investor Program. Investors can qualify for the E2 Visa by buying or setting up their own business. In this article we’ll look at buying a franchise as a means of securing your E2 visa.
So many companies have become household names – Subway, Planet Fitness, Mrs. Fields, to name a few – and using the power behind these established brands may help to ensure the long-term success of an E2 Treaty Investor visa application.
The decision to purchase a franchise, like any other life-changing decision, has both pros and cons. Let’s take a look at some of the highlights of buying a franchise for your E2 visa application.
The Power of the Franchise Brand
Starting up a business can be one of the riskiest ventures anyone can undertake and, when paired with an intercontinental relocation, the stakes are very high. In purchasing a franchise business, E2 visa investors can gain the support and experience of other experienced franchisees as well as the established marketing systems of the franchisor that have proven successful for the brand. Whilst buying a franchise does not guarantee success, it does help you avoid so many pit-falls that come with starting a business from scratch.
Some people looking to relocate to the US are not looking to work long hours; some are coming more for retirement and looking to the franchise to get the E2 visa so they can live in the US indefinitely, while others, the younger ones, full of beans and ambition are looking to roll up their selves and build an empire. One of the great aspects of buying into a franchise is that many people end up buying multiple franchises over time and do very well indeed.
Is Prior Experience Required?
One of the beauties of buying a franchise is that no prior experience is required in most cases. Instead, the E2 visa investor will attend a rigorous training course that will teach you everything you need to know about owning and operating your business. Many E2 visa clients find the training invaluable and a comforting especially if they have had no experience running their own business before.
What are the Main Benefits of Buying a Franchise?
As entrepreneurs, E2 visa investors take the risk that there will be a demand for the product or service they are offering. With individuals who start-up brand new businesses from scratch based on a unique concept, they must face the inherent risk that consumers will need time to become aware of, familiar with, and then ready to buy their product or service. With a franchise, especially a well-established one, E2 investors can rest assured that there is already a well established public desire for the products or services, though they must be willing to put forth the effort to properly run the business.
What Does a Typical Franchise Cost to Set Up?
With the purchase of a franchise, you will be getting the benefits of an established brand as well as support from other franchisees; however, E2 investors will need to be willing to pay for this. A typical franchise business will cost you anywhere between $100,000 – $250,000 to set up. Indeed the much larger franchise outlets can run into several hundreds of thousands of dollars but these franchises tend to require very little day-to-day management from the E2 investor. So if you’re really looking to retire aim big, in the $500K+ investment range.
To ensure that your franchise is well supported by the head office in terms of on going training, national and local ad campaigns and product innovations, most franchisors will require you to pay a small royalty in the region of 5% – 9% from the gross revenues of the business. Some franchise companies may have other fees too.
What Are the Risks With Franchises?
As with all business ventures there is an element of risk. Not all businesses that start well end well. So the appeal of going down the franchise route is the idea that if a franchise has many thriving branches that it has grown over the years then you can assume that they have worked out many of the pitfalls and learned from them so that when you come to buy your franchise you will be in an advantaged position.
You should also focus on buying a franchise outlet that is already up and running and has great financial accounting records. Whilst it’s possible to open up a brand new location as a franchise, you never know how long it will take for that franchise to become established and move from a loss making situation to a positive cash flow situation. There is the risk that you could run out of cash flow before the business has established itself.
Best advice, buy a well oiled machine of a franchise outlet rather than open one from scratch yourself unless you have very deep pockets.
How Do I know Which Franchise is Right For Me?
Deciding which type of business to purchase or start-up can be one of the most difficult decisions made by E2 visa Investors, and it should be given careful thought. With E2 investors, the visa is directly tied to the success of the business, so it is important for individuals to purchase a business that can be successful in the long-term.
Franchises are great options for many E2 Investors, and the Law Offices of Chris M. Ingram have helped many realize their American Dream through the purchase of a franchise. To learn more about E2 Investors who purchased a franchise, we invite you to review the stories of Helen and Andy, who purchased a Nuyo frozen yogurt company; Harry, who purchased a Mrs. Fields’ cookie store; and Douglas and Tracy who purchased a Merry Maids cleaning service.
Contact the Law Offices of Chris M. Ingram today for a free consultation that could be the start of your American Dream!
US Immigration Law Offices of Chris M. Ingram
Chris M. Ingram LL.M., ESQ – Immigration Attorney
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Specializing in the E2 Visa, EB1 Green Card, L-1A Visa and O1 Visa and K1 Visa Marriage-Based Immigration. Attorney Chris M. Ingram is dedicated to providing the very best in US Immigration legal representation. Enjoy our website.
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