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E2 visa - Buy a Franchise and let someone else run it

E2 visa - Buy a Franchise and let someone else run it

Old Jun 27th 2021, 2:17 am
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Default E2 visa - Buy a Franchise and let someone else run it

For an E2 visa, can we buy a franchise and hire someone else to run it? Would this work for an E2 visa?

I don't mind doing some work on it but i want to do as little work as possible on the new US business.

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Old Jun 27th 2021, 11:56 pm
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Why would you need to move here if you’re not going to run it? Or do you mean to ask whether you need a visa in order to purchase a business here, even if you don’t intend to move?
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Old Jun 28th 2021, 12:18 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by steph0scope View Post
Why would you need to move here if you’re not going to run it? Or do you mean to ask whether you need a visa in order to purchase a business here, even if you don’t intend to move?
I like the US to live, I like people, culture and place there but don’t want too much more on my plate.
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Old Jun 28th 2021, 12:23 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Stevy777 View Post
I like the US to live, I like people, culture and place there but don’t want too much more on my plate.

More? You can only work on the E-2 business while in the US.
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Old Jun 28th 2021, 12:25 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Nutmegger View Post
More? You can only work on the E-2 business while in the US.
can I employ staff for the new business so I’m not so hands on ?
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Old Jun 28th 2021, 1:16 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Stevy777 View Post
can I employ staff for the new business so I’m not so hands on ?
That is the whole point of the E2.

E2 is a non immigrant visa, so your stay is linked to the continuing success of the business.
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Old Jun 28th 2021, 1:20 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Boiler View Post
That is the whole point of the E2.

E2 is a non immigrant visa, so your stay is linked to the continuing success of the business.

Thanks you! Appreciate the responses. I think that’s great , and I plan on the business being successful forever too - I just wonder how much I need to be running things day to day. Do I have to be running this day to day

or can I employ full time staff ?
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Old Jun 28th 2021, 1:23 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Amusingly the normal issue is people not having Employees, basically using an E2 to work themselves.

No requirement for you to work hands on. Now how much you need to be involved to protect your investment is another matter. And of course Franchise is a very wide term.
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Old Jun 28th 2021, 2:13 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Boiler View Post
Amusingly the normal issue is people not having Employees, basically using an E2 to work themselves.

No requirement for you to work hands on. Now how much you need to be involved to protect your investment is another matter. And of course Franchise is a very wide term.
Thank you, that’s really useful !

can I please ask, am I required majority ownership in any business ? Is going in with a US partner going to work or s few people (?)
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Old Jun 28th 2021, 2:15 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

General Qualifications of a Treaty Investor

To qualify for E-2 classification, the treaty investor must:
  • Be a national of a country with which the United States maintains a treaty of commerce and navigation;
  • Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States; and
  • Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
investment is the treaty investor’s placing of capital, including funds and/or other assets, at risk in the commercial sense with the objective of generating a profit. The capital must be subject to partial or total loss if the investment fails. The treaty investor must show that the funds have not been obtained, directly or indirectly, from criminal activity. See 8 CFR 214.2(e)(12) for more information.

A substantial amount of capital is:
  • Substantial in relationship to the total cost of either purchasing an established enterprise or establishing a new one
  • Sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise
  • Of a magnitude to support the likelihood that the treaty investor will successfully develop and direct the enterprise. The lower the cost of the enterprise, the higher, proportionately, the investment must be to be considered substantial.
A bona fide enterprise refers to a real, active, and operating commercial or entrepreneurial undertaking which produces services or goods for profit. It must meet applicable legal requirements for doing business within its jurisdiction.
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Old Jun 28th 2021, 2:20 am
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Very cool - thank you !
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Old Jun 28th 2021, 12:36 pm
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Default Re: E2 visa - Buy a Franchise and let someone else run it

This is referred to as 'the visa from hell' here on BE. No direct route to a Green Card, and, if you get denied a renewal, you have to pack your things and leave the US pronto.

If you're thinking you can just buy a business as a cheap way to live here forever, your plan is extremely flawed. At some point you would like to retire right?
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Old Jun 28th 2021, 3:53 pm
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by civilservant View Post
This is referred to as 'the visa from hell' here on BE. No direct route to a Green Card, and, if you get denied a renewal, you have to pack your things and leave the US pronto.

If you're thinking you can just buy a business as a cheap way to live here forever, your plan is extremely flawed. At some point you would like to retire right?
thanks for that info and thoughts, it does sound very uncertain

If the business becomes unprofitable , is that the main reason for being denied renewal ?
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Old Jun 28th 2021, 3:59 pm
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Default Re: E2 visa - Buy a Franchise and let someone else run it

One way or another, yes, the Business no longer meets the requirement of the visa.
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Old Jun 29th 2021, 11:49 pm
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Default Re: E2 visa - Buy a Franchise and let someone else run it

Originally Posted by Boiler View Post
One way or another, yes, the Business no longer meets the requirement of the visa.
You should clarify what question you are answering. The placement of your answer indicates the business has to be profitable to qualify for the visa.
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