One of the services we provide at franchise city is matching foreign investors with appropriate
E-2 visa friendly franchises.
Now part of the reason that the E-2 can be a confusing visa is it's relative ambiguity.
Unlike the EB-5 which provides very specific guidelines in terms of employees and financial
requirements, the E-2 visa requirements are comparatively vague.
The advice for E-2 applicants is that the business should not be "marginal" But what
does that actually mean?
Well at the core of the definition is the requirement that the applicant is not starting
a business merely for their own financial benefit.
So if your business or franchise possesses an operational model where money is generated
solely by you and for you, it is quite likely you will be denied the E-2.
Now to further complicate matters keep in mind each immigration official will have varying
interpretations of what marginal means.
Because we are dealing with human beings, and because the requirements are relatively
ambiguous there is no definitive answer to what marginal actually means.
A few things to consider however that will strengthen your E-2 petition are as follows:
1.
Present a business plan that demonstrates economic benefit to the US economy, not just
yourself.
Examples might be having employees, or hiring contractors.
Some businesses that are not ideal options and are often perceived as marginal are Real
Estate or investments of any kind.
These endeavors generally show little economic benefit outside the owners own finances and
are not good choices for E-2.
Keep in mind the goal is not only revenue.
The Adjudicator doesn't care if your business makes 20 million a year if that money is all
going into your pocket.
Always think in terms of overall economic benefit to the US economy.
If you are starting a new business it is not necessarly a requirement to have employees
when you first open.
But including the addition of employees in your long term business plan is a definite
benefit.
2.
Provide a strutured and clean business plan.
If you present a sloppy business plan it doesnt project the image that you are a future success
story.
One of the benefits of purchasing a franchise is the ability to reference historical successes,
and often times existing business plans.
3.
Letters of intent or contracts.
Being able to provide such documentation to the E-2 visa official demonstrates conclusively
the business is viable, and capable of securing contracts.
The official needs to be convinced that this is a viable business and what better way than
having contracts already in place.
Be careful however how you secure the contracts as there are a very limited number of acceptable
business activities you can perform prior to being granted your investor visa.
4.
Keep projections realistic.
Many applicants are tempted to exaggerate their projected financials in order to strengthen
their case.
Most officials will have very conservative outlook and are likely to prefer a realistic
business plan rather than one that claims outlandish earnings.
5.
Don't buy a failing business.
If the business you are buying is a "great deal" however the financials indicate losses,
this may be perceived as a marginal business.
You may be better starting a business or franchise from scratch as it will not carry the negative
baggage that is the case with a financially distressed company.
If you do have the budget, be sure the company financials show growth, long term employees,
and stable revenue.
Partnering with a well known franchise has a number of benefits for the E-2 visa over
starting your own business.
Franchise City helps foreign Nationals partner with E-2 friendly franchises that are best
matched to their qualifications and budget.
You can learn more about our services by clicking the link above.
Thanks for watching.