On October 7th, there was a free Facebook live event where immigration professionals spoke about what the Pros and Cons are when investing in franchises or existing businesses. Both VisaPlace and Vetted Biz had immigration professionals speak on the topic. Patrick Findaro from Vetted Biz/Visa Franchise and Fadi Minawi from VisaPlace discussed:
- How to Analyze Franchises & Businesses
- Steps for Buying a Franchise or Businesses
- Steps for Buying a Franchise or Business
- Franchise/Business Pros and Cons + The Secret Hybrid
- How Visa Franchise Can Empower Your Business Search
- How VisaPlace Can Help You Apply and Your Immigration Process
Watch the Full Video on E-2 Investor Visas: Franchise vs Existing Business here:
Why Choose an E-2 Visa
E-2 Visas approval rating has remained the same year-over-year at an 89% approval rating. The E-2 Visas approval ratings are significantly higher than many non-immigrant visas. The overall nonimmigrant visa denial rate increased from 22% in 2018 to 26% in 2019 except for the E-2 Visa. The top 15 E-2 Countries include:
- Japan
- Canada
- Great Britian
- Germany
- France
- South Korea
- Mexico
- Italy
- Spain
- Taiwan
- Türkiye (formerly Turkey)
- Sweden
- Argentina
- Colombia
- Australia
What Type of Investor Are You?
There are two main types of Investors: Strategic/Financial Investor and Lifestyle Investor
Strategic/Financial Investor
- Foreign corporations and individuals seeking to enter new markets and/or expand the product offering
- Initial investment from $80,000 to $1,000,000+
- Beyond visa eligibility, there is a major focus on return on invest
- Aims to expand the business through opening new locations, acquiring competitors, or other means
- Location is important but often secondary to strong earnings and potential growth
Lifestyle Investor
- Foreign individuals generally with a net worth above $1,000,000
- Prioritize working fewer hours over gaining more income from the business
- Initial investment from $150,000 to $350,000
- School district is very important for the children
- The longevity of the business is more important than high profit
- Potential to sell the business after 2-4 years if they return to their home country or decide to pursue a green card
What Industry Should I Invest in for an E-2 Visa?
There are a few industries that international investors are most interested in especially in light of the current pandemic.
- Fast Food
- Real Estate
- Health
- Cleaning
- Pet Care
- Business Services
- Beauty
- Education
Should I Invest in a Franchise or Business for an E-2 Visa?
There are two main options for investing in the US: Franchise and Independent Business
Franchise for E-2 Visa
Pros:
- Initial & Ongoing Support from the Franchisor
- An established business model built to scale
- business functions often provided by franchisors (negotiating with suppliers, research & development)
Cons:
- Costs associated with gaining franchise rights
- The time it takes to open the business and break-even
- Restrictions imposed by the franchisor
Independent Business for E-2 Visa
Pros:
- Business is already operational and often times profitable
- Historical financials to better determine the success of the business
- Easier to finance (through the seller or possibly bank)
- A wider array of businesses and industries available
Cons:
- Financial/ legal due diligence by professionals ($$$)
- Successful businesses may have a high asking price
- Seller training and ongoing support often limited
Full Online Event Presentation:
VisaPlace Immigration News Contributor
Ella Bergquist
Hello! I am one of VisaPlace's many immigration news contributors. Comment below if you have any questions or comments about this article.
