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FranchiseEB-5 Franchise Investment:
The Process Explained
EB-5 Franchise Investment: The Process Explained
The U.S. can be a lucrative place for a foreign investor to come to start their own business. It has a strong overall economy; The World Bank reported in January 2024 that as of 2022, the most recent year available, the U.S. gross domestic product (GDP) was $25.44 trillion; the highest in the world. So how can a foreign investor like yourself stake your claim in the U.S. markets? There are several ways, but one that may suit you best is the EB-5 program. Let’s take a look at how this program works, and how out of all the EB-5 investment opportunities there are, an EB-5 franchise may be your best bet.
EB-5 Defined
The EB-5 program, also known as the Immigrant Investor Program, is a visa program that allows foreign investors like you to become a full U.S. resident by establishing a business in the country. The program started in 1990, and not only helps businesspeople who want to come to the U.S. and gain citizenship, it also helps increase job opportunities in areas with unemployment challenges.
To meet EB-5 visa requirements, you must invest in an EB-5 franchise, or other EB-5 qualifying business. For your investment to quality, you must invest at least $800,000 in a business located in a targeted employee area (TEA), or $1,050,000 in a business located in an area outside of TEAs. Your investment must also create or save at least ten full-time job positions for U.S. workers for two years.
If these amounts alone sound like more than you can afford by yourself, and you don’t want to borrow money, there is an option available to you. Through the EB-5 Reform and Integrity Act of 2022, the regional center program was reenacted. These centers allow multiple foreign investors to pool their capital to invest in a qualifying EB-5 business. However, be aware that if you go this route, these regional centers charge administrative fees. Regional center operator EB5AN estimates these fees usually come in between $30,000 - $90,000.
The Visa Process
Once you’ve made your investment, obtaining a visa is a straightforward process which typically takes about 13 months. First, you submit an application to U.S. Citizenship and Immigration Services (USCIS) with Form I-526. The service reviews the application and sends it to the National Visa Center (NVC). The center will contact you to request the necessary fees and documents. From there, you apply for an immigrant visa and attend an interview at the U.S. Embassy. If you’re approved, you’ll be issued your Immigrant Investor Visa.
Franchising and EB-5
Regardless of the country, opening a new business always comes with some risk. But you can give your business idea the best opportunity for success by making it an EB-5 franchise. Franchises aren’t only viable as an EB-5 business, they give you a lot of advantages, including:
- Proven business models to lower the risk of failure.
- Franchisors to serve as guides to the U.S. business landscape, provide advice, and provide important support services for your franchise.
- A greater chance of approval for business loans.
- Improved business networking opportunities through your fellow franchisees and with your franchisor’s connections.
The U.S. welcomes hardworking, ambitious entrepreneurs that want to come here and make their fortune and help others do the same. The EB-5 program is here to help businesspeople like you with vision and passion to stake your business claim, and franchising is a great way to give your business foundation the best chance to grow.
Find a Great Foreign Investment Opportunity in Altitude
We’re pleased and excited to offer foreign investors like you the opportunity to buy a business in the USA from us. We are the U.S.’s preeminent indoor trampoline park franchise looking for franchisees that are passionate about providing their community with a service that supports active, healthy lifestyles. We’ll guide you through the whole franchising process from start to finish; you’ll own your own business, while having a support network you can count on. Fill out a franchise form today to learn more about your franchising opportunity with Altitude.