Franchise portal, All State Franchise Finders, claim that the franchise business model is the ideal way to meet US E2 treaty investor visa requirements. Company CEO, Derek Cafferata, said that an established franchise makes meeting the criteria for an E2 visa ‘much easier.’
Sanwar Ali workpermit.com Comments: Yes, the franchise route can be an easier route. Hopefully taking over an existing business will make success more likely. Also, setting up a new business will probably require more time and effort than buying a franchise. However, franchises can be expensive. The Franchisor has to make a profit. Perhaps there is also a dealer who also want a commission. In many cases opening a new business is far cheaper than buying existing business including franchises.
To be able to obtain E2 visa registration, investors are required to show either that they are in the process of investing money and are putting money at risk or have reached an agreement to purchase an existing business. According to Mr Cafferata, a ‘bona fide franchise business can normally provide past performance information, current status and future growth potential relatively easily.’
In order for a company to have its E2 visa renewed every few years, the business needs to show that it can provide employment for both the E2 Treaty investor and US and US resident members of staff. Plus, the business must be producing goods or services for profit.
Cafferata’s assertions have been echoed by Canadian franchise expert, Paul Lindquist who – back in January, 2017 - stated that ‘franchises represent a good fit for Canadian citizens applying for an E2 visa.’
He said: “Franchise brands are perfect for E2 investors, because the US government knows these companies are legitimate, and the franchisor provides the investor with a detailed five-year business plan, something that is required to be filed along with your E2 application.”
Recently, the US E2 visa process has been streamlined for Canadian citizens, who benefit from priority scheduling for E2 and E1 treaty visa interview appointments.
E2 treaty investor visa in demand
As President Donald Trump continues to “tighten the screw” on other employment-based visas, luding the H1B and L1 visa routes, interest in the E2 visa has grown. In April 2017, Workpermit.com reported that New Zealand plans to lobby for US E2 and E1 visa access the help of Trump’s former campaign director, Stuart Jolly.
New Zealand has made an E1 and E2 visa agreement its top priority, with the executive director of industry group Export NZ, Catherine Beard saying: “It’s been the number one focus of the embassy over there. Access to the visa program was generally granted after reaching a free trade agreement.”
“We've been trying for years to negotiate a free trade agreement with the US and we’ve never been high enough on their radar,” Beard added.
The E2 Treaty Visa category continues to be popular among UK investors, with Orlando, Florida seeing a spike in the number of British business owners arriving in the state. According to recent US State Department statistics, UK companies are the largest investors in the USA, investing heavily into US-based subsidiary companies.
In 2010, it’s understood that US subsidiaries of UK companies employed close to one million US workers, mainly across the manufacturing sector. Since 2011, federal government data indicates that the number of E2 visas granted has increased by 46%, rising from 28,000 to 41,000.
Meanwhile, over the last 20 years, the number of E2 visas issued has more than doubled, only experiencing a decline following the September 11, 2001 terrorist attacks and the global recession.
A recent immigration review, undertaken by Josic Media confirmed that interest in the E2 visa continues to grow and is highly coveted by foreign investors. Currently, the treaty investor visa isn’t on President Trump’s radar, but that could change if its popularity continues to increase.
It has been suggested that it will be difficult for the E2 and E1 visa schemes to be scrapped as they are based on relevant trade agreements between the E2 and E1 Visa Treaty Country and the US typically over a number of years.
The US can only break any treaty in accordance with the terms of an agreement. Equally, a decision by Trump to unilaterally withdraw is likely to be unpopular with E2 visa treaty countries, the American public and any US natives that enjoy the reciprocal benefits (in practice does not always exist) of starting a business overseas in a nation with an E2 treaty agreement.
Alongside Canada and the UK, more than 80 countries participate in the US E1 treaty trader and E2 treaty investor visa programs, including:
The E2 Treaty Investor Visa explained
The E2 visa is issued to businesspeople, individuals with specialist knowledge or essential skills and for those that work in management or supervisory level. The E2 treaty investor visa programme in many cases makes it easier for businessmen to start new businesses in the US and bring in overseas staff on US E2 work visas.
The E2 treaty investor visa scheme allows entry to the US with a relatively low investment requirement. There is no quota and the E2 visa can continue to be extended as long as the business continues in the US. This may be a concern for some wealthy people who wish to stay in the US for an indefinite period of time without having to worry about the tax consequences of US lawful permanent residence (green card).
Workpermit.com can help with E1, E2, L1, H1B, B1 in lieu of H1B, B1 Business Visit Visas, E3 Visas and other types of US Visas
For more information, or to find out if you are eligible for an US work visa, contact WorkPermit.com on 0344 991 9222.