EB5 Investors Magazine Volume 7, Issue 2 | Page 114

The benefits of using a franchise as a direct EB-5 investment For new immigrants, investing in a franchise could provide for a more supportive investment route and be a safer option when in unchartered territory. By Manish Adhiya A merica is the “Land of Opportunity”. Every day, we see immigration as a story on the news. Illegal or legal, rich or poor, America is the promised land for thousands, if not hundreds of thousands of people annually. Foreign Investors and business professionals are among those looking to come to the U.S. in order to create a better life and opportunity for themselves and their families. America was built on small business and this entrepreneurial spirit is alive and thriving across the c o u n tr y. Ac c o r d i n g to th e I n te r na ti o nal Fr a n c h ise Association (IFA), franchising is a proven business model with 733, 000 establishments, 270 billion in payroll, $674 billion in output, $404.6 billion in GDP, more than 3,900 franchise concepts and the catalyst of 7.6 million jobs. 114 EB5 INVESTORS M AGAZINE THE BASICS OF FRANCHISING Before getting into why franchising is a viable option for an EB-5 investor, let’s define a few words that often get confused by an investor. A franchisor is the company that owns the business model, processes, systems, name and trademarks of the business. A franchisee is someone that buys a business that is part of a chain using the same name, trademarks, product and services. A franchise is the business that allows the franchisee to start a business offered by the franchisor. The grow th and economic impac t of franchising is substantial in the U.S. and continues to grow from the early 1850’s, when franchising first began. Franchising is a proven method of knowledge, insight, and wisdom of a