Can I Choose A Franchise As My EB5 "New Commercial Enterprise"?
EB5 investors are faced with a myriad of choices when it comes to fulfilling the new commercial enterprise requirement of the EB5 program.
The EB5 program has three main requirements. These being that $1 million be invested in a new commercial enterprise or $500,000 be invested in a targeted employment area (TEA), and this investment must create 10 full time jobs for qualified U.S. workers.
Can I Choose To Invest In A Franchise?
Yes, you can opt to invest in a franchise. This doesn't mean that you shouldn't conduct due diligence on each project you're interested in.
What Are The Benefits Of Investing In A Franchise?
There are many benefits to investing in a franchise as your "new commercial enterprise." To lower the minimum investment required, investing in a franchise in a TEA, only requires $500,000 capital investment.
- An investor doesn't have to create a business from the ground up, they can purchase a franchise that already has a location.
- Franchises are already established. They have name brand recognition that will bring in customers.
- They have business models and plans laid out for new franchise owners and can reasonably predict how many jobs the business can create.
- They may train employees for franchise owners. This can be incredibly helpful to immigrant investors who may not have direct experience business management.
- A franchise may provide all the marketing.
What Next?
Choosing a franchise with a strong customer-base and business plan may be a strong overall investment that can create the requisite jobs necessary. It may also make the application through the USCIS go much smoother.
Conduct research and seek professionals for more advice on all your options. Not all franchises may fit what you are looking for or what the EB5 program requires. A small coffee shop may look like a great model, but if it doesn't create the required number of jobs, the USCIS will deny your petition and prevent you from acquiring a green card.