Frequently Asked Questions

Frequently Asked Questions

01 What is Franchising?

Franchising is a method of distributing products or services.  Each franchise system typically includes the franchisor, who lends the brand and business system; and the franchisee, who pays a royalty and often an initial franchise fee for the right to do business under the franchisor’s name and system.

02 Can I invest in a franchise that is well known in my home country?

Foreign franchises can be quite successful in the U.S. but generally after several adjustments to their business model. We prefer to work with foreign franchisor brands that have atleast few units operating in the U.S. and a track record of success.

03 What are the major growth industries in franchising?

Industries in franchising that are expected to continue to experience rapid growth for the coming years are largely in the service-related fields such as:

  • Fitness
  • Healthcare/Senior Care
  • Education
  • Pet Care
  • Cleaning Services

There are many opportunities across specific sub-segments of industries like quick service restaurants as well. Industry growth is a key part to understand before investing in a franchise, however, it is key to also analyze an individual franchise company’s track record. Consult with Visa Franchise to learn more.

04 What should i consider before buying a franchise?

Among the points which the International Franchise Association (IFA) recommends for investigation include:

  • The type of experience required in the franchised business;
  • A complete understanding of the business;
  • The hours and personal commitment necessary to run the business;
  • Who the franchisor is, what its track record has been, and the business experience of its officers and directors;
  • How other franchisees in the same system are doing;
  • How much it’s going to cost to get into the franchise;
  • How much you’re going to pay for the continuing right to operate the business;
  • If there are any products or services you must buy from the franchisor and how and by whom they are supplied;
  • The terms and conditions under which the franchise relationship can be terminated or renewed, and how many franchisees have left the system during the past few years;
  • The financial condition of the franchisor and its system.
05 How much capital is needed to buy a franchise?

Investment requirements range greatly depending on the franchise, location and industry. Total start-up costs can range from $20,000 to over $1,000,000, depending on the franchise selected.

06 What is the minimum franchise investment needed for an L-1 or E-2 visa?

There are no set minimums for either visa category but we recommend a total investment of at least $150,000 for the E-2 investor visa and $100,000 for the L-1 visa.

07 What are the requirements for an E-2 visa?
  • E-2 Treaty Investor Visa: Allows a national of a “treaty country” – a country with which the U.S. maintains a treaty of commerce and navigation – to be admitted to the United States when investing a substantial amount of capital in a U.S. business;
  • The U.S. E-2 business must be majority owned by nationals of the treaty country
  • Examples of treaty countries: Argentina, Colombia, Ecuador, France, Germany, Italy, Japan, Mexico, Spain & United Kingdom (complete list: http://travel.state.gov/content/visas/en/fees/treaty.html);
  • Although Brazil and Venezuela, are not treaty countries, many investors qualify for the E-2 visa through dual-nationality with countries like Italy and Spain;
  • The investment must be substantial in relation to the type and size of the business often times a minimum of $150,000;
  • The E-2 business must be an enterprise with sufficient profits to support the investor’s family.
08 What are the benefits of the E-2 investor visa?
  • May be extended indefinitely
  • May sponsor other essential employers that have same nationality
  • Short processing time often less than one month
  • Minors under 21 can attend school and spouse can obtain work authorization
09 My ancestors are from an E-2 treaty country and I think I might be eligible for citizenship. Does Visa Franchise help in obtaining Spanish, Italian, French, or other country citizenships?

Visa Franchise works with firms who have helped thousands of people obtain their European citizenship. Contact us if you are interested in exploring this option.

10 I own my own business in my country and would like to open up a subsidiary in the United States. Could Visa Franchise help me with this process?

Depending on the type of business you would like to operate in the U.S., Visa Franchise can provide support on market and financial studies. Also, we supports services related to obtaining the visa through Visa Franchise and our partners.

A prospective investor might have an established business in his home market then decide to invest in a U.S. franchise or existing business. This still allows them to obtain an L-1 visa even if the affiliated business abroad is not in the same industry as the U.S. company.

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