E2 and EB 5 visas create the perfect opportunity for franchises as many of them, like McDonald’s, require active owner participation, which aligns perfectly with the E2 visa. Immigrant investors can invest their hard-earned capital in a troubled business that they can then turn around, or they can buy an existing business and take over completely without any support from the previous owners. But both of these options, while providing the optimal profit potential, also pose the highest degree of risk, unless a restaurant management company is engaged to facilitate and oversee the operations. At TRG restaurant consulting we provide the services necessary for investors to startup and operate their business successfully.
With a franchise, the immigrant capitalist enjoys many advantages. The lifeblood of any business is its customer base, and buying a franchise comes packaged with a well-established customer base. There is brand equity already established, the name is well-known, and this leads to customers who are already loyal and comfortable with purchasing items from a firm with a solid foundation. And unlike buying an existing business, the franchisor provides continued support and training to the employees and managers of the franchise to support the entrepreneurial pursuit of the immigrant business owner. Unfortunately, much of the support provided by franchisors is based on “boilerplate” or generic templates and the contract agreements are also less than favorable to the investor.
The franchising option also offers a moderate to low capital risk for the franchisor and franchisee. Failure rates for franchisees are in some cases lower than they are for other types of new business investments and can be pre-examined by conducting a proper, independent feasibility study. Established franchises which are backed by solid brand awareness, may obtain banks loans with some ease due to the perceived lower risk. From a marketing standpoint, the franchisor has in place advertisements at the local and national level, providing maximum coverage and coverage to boost the revenues of all franchisees without being encumbered by the additional cost of marketing and advertising.
Investing in your own business can be even more rewarding, if the investor is willing to take all of the necessary steps to be successful. This option can also offer a moderate to low capital risk for investors. Starting a new business is not easy, but there are plenty of resources available to assist an owner. For example, at TRG restaurant consulting we offer EB5 business plans, feasibility studies, site selection, lease negotiations, concept development, startup assistance, training, branding, project management, foodservice design and everything needed to get your business open and operating at a high level. Another advantage of opening your own business is the freedom to; develop a concept you believe in and enjoy, to expand and grow, to control your revenue and income, to make adjustments when necessary and of course the flexibility of an open schedule and timeline. This is usually the preferred option for an entrepreneur with future growth in mind. In most cases these type of business savvy investors plan on creating scalable concepts that will be offered as franchise opportunities to others in the future.