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Do older franchises count for EB-5?

I would like to invest in a Carl''s Jr Restaurant, does a new franchise Carl''s Jr qualify as a new enterprise even though the original was established in 1941 and franchising began in 1984?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Yes, USCIS looks at the day the commercial enterprise was created. Further, if you have invested the required capital and the new commercial enterprise creates a minimum of 10 jobs, then it should be EB-5 compliant.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    If you are purchasing a franchise and will be establish your own company to purchase the franchise, that will qualify.

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    A Mina Tran

    Immigration Attorney
    Answered on

    It depends on how you structure your company. Usually each individual franchise can qualify as a new enterprise for purposes of EB-5, so you should be okay.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    A new franchise location should be considered a new commercial enterprise (NCE). Usually, the NCE would be a new corporation or limited liability company that would be the franchisee and receive permission from the franchisor to operate the restaurant. Since you are not investing in the corporation Carl''s Jr., but you would be investing in a new corporation or LLC which would open a new restaurant franchise location, it would seem that the new commercial enterprise requirement would be met. Please note that a bigger issue might be proving 10 full-time jobs.

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    Michael A Harris

    Immigration Attorney
    Answered on

    Yes because you are likely investing in a new corporate entity that will be creating new jobs. There are other factors aside from when the company was formed, so you should have an experienced EB-5 attorney guide you.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    It would count because you would be forming a NEW entity that would be the franchisee and execute the contracts with Carl''s Jr. And, you would fund the money into the new entity which would pay all the fees for the site.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    If you were purchasing a new location new unit, the franchise business history would not be a problem. If you purchased an existing unit, that would potentially pose problems.

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    Neena Dutta

    Immigration Attorney
    Answered on

    Your investment would be for an individual location, which utilizes the franchise business model and overall corporate information, but will have an individual property and tax identification separate to the central corporation. However, your are not utilizing the umbrella organization as your "business itself." Therefore, a new location of the franchise would be a new enterprise. This is actually an excellent direct investment model because these franchises have a proven track record, specific needs for the business and specific numbers of employees which are well documented. As a result, you have a very good model for your EB-5 investment.

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    Stephen Berman

    Immigration Attorney
    Answered on

    A new franchise should be deemed a new business entity. Depending on the facts, you cannot buy an existing restaurant and just continue to operate it, and qualify for the EB5.

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    Ed Beshara

    Immigration Attorney
    Answered on

    First, please hire an experienced EB-5 attorney who will be able to guide you through the EB-5 process as it relates to franchises. You may invest in a new commercial enterprise which creates employment and also operates under a franchise brand name.

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    Ying Lu

    Immigration Attorney
    Answered on

    That should work as long as your store is new, which means that this particular store does not exist before you open it. Direct EB-5 cases can be very complicated. I suggest you find an experienced EB-5 attorney to take care of the EB-5 structuring issues.

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    Alexander Lebedinski

    Immigration Attorney
    Answered on

    Assuming you are forming a new legal entity that will own and operate the restaurant, it should qualify as a new commercial enterprise.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    In all likelihood, yes, as the actual job creating entity will be a new enterprise, not an existing enterprise that you are purchasing. In fact, having an establish brand behind you, like Carl''s. Jr., could even help.

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