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