Steps to consider when taking on a direct EB-5 with franchise store(s)

(SOURCE: EB-5 Center) Let's say you are considering pursuing a direct EB-5 case based on a planned establishment of new franchise stores. It could be a franchise store or a non-franchise store. Chronologically, the below are the steps you should take.

- How many franchise stores do you have to establish to meet the 10 new (excluding you and your family members), full-time positions? If one store will require only 6 full-time positions, then you better plan on setting up at least two (2) stores to meet the job requirement.

- Can you establish the required number of NEW, full-time positions within 3 years from now? In addition to 2 years of conditional permanent resident time period, it will take additional time to file and get I-526 approved, complete the IV consular processing or I-485 adjustment of status and acquire CPR status. Therefore, you have at least 3 years or maybe even 3.5 years to create requisite jobs. 

- Will the store(s) be located in a TEA area? You have to find out how the agency in your state interprets the concept of high unemployment area or rural area and get the evidence of TEA from the appropriate state agency.

- Will one store be located in a TEA area and another store be located non-TEA area? If so, you better be prepared to invest at least $1 Million USD in the two stores, and then structure your New Commercial Enterprise (NCE) entity to comply with the USCIS definition of the NCE.

- Will your EB-5 funds meet the lawful source requirement? Make sure the tracing documents are clear and understandable. Start getting the EB-5 funds to be deposited into your personal bank account to be wired into either an escrow account or the bank account of the New Commercial Enterprise (NCE) entity.

- Make sure documents for the New Commercial Enterprise entity show that you have the rights to be involved in either policy-making decisions or day-to-day managerial decisions.

- Start working on a comprehensive business plan that meets the requirements of Matter of Ho precedent AAO case. You may need to work with a qualified Business Plan writer. In particular, focus on showing clearly how and when new job positions will be created and how and when your EB-5 investment will be spent to help create these jobs. Note that the jobs do not have to be created all at once, as long as you create all the jobs by the time you submit your I-829 conditions removal petition, some 2 years after you obtain your conditional green card.

Read complete article here: Steps to take on doing a direct EB-5 case by establishing new franchise store(s)

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