Would you like to invest in a profitable passive business to immigrate to the United States? Well, I don’t want to be discouraged, but… not a good idea. To obtain an investor visa in the country, your active participation in the business is crucial.
Passive investments, while tempting, do not meet the requirements of visas such as E-2 or EB-5.
Now, how about exploring semi-passive franchises? These will allow you to comply with the legal requirements of visas, without the need for exhaustive daily management. Are you up for discovering the ideal balance between active and passive investment to secure your path to the investor visa? Move forward!
Why a Passive Investment Doesn’t Grant Immigration Status
The U.S. government offers several types of investor visas, such as the E-2 visa and the EB-5 visa, designed for those who want to invest in the country. However, these visas require the investor to be actively involved in the management of the business.
Passive income businesses, such as buying stocks or investing in real estate for rent (without involvement in day-to-day management), generally do not qualify for these types of visas. The reason is that the government seeks to promote job creation and economic development through foreign direct investment, which implies active management by the investor.
Semi-passive franchising as an alternative
A solution for investors who want a less intensive focus on day-to-day management, but still seek to meet visa requirements, is semi-passive franchising. These allow the investor to own a business with an already established business model and with corporate support, but with the need to be involved in certain aspects of management. This model combines the best of both worlds: it allows for business monitoring without requiring day-to-day management.
There are numerous examples of semi-passive franchises that have been successful in the United States. Semi-passive franchises with potential by 2024 include Anchored Tiny Homes, Nora Mental Health, EverLine Coatings, Temporary Wall Systems, and Fastest Labs. These businesses allow investors to have a more supervisory role, delegating day-to-day management to a team of managers, while meeting the investment and job creation requirements for investor visas.
Assessing the risks associated with semi-passive businesses
Although semi-passive franchises offer an attractive combination of involvement and autonomy, it is important to evaluate the associated risks. These may include reliance on the local economy, managing personnel, and adapting to U.S. regulations. It is crucial to conduct thorough research into the specific market and franchise model before investing.
An essential tool in this process is the Franchise Disclosure Document (FDD), which provides detailed information about the franchise, helping you conduct thorough research before investing. This document is key to better understanding the franchise and minimizing potential risks.
While passive investments are usually not enough to obtain an investor visa in the United States, semi-passive franchises represent a promising alternative.
At Interlink FBC, we are ready to guide you in the analysis and selection of the franchise that best suits your knowledge, skills and resources. Contact us to find the ideal balance between active and passive investing, and open your path to business profitability in the United States.
