Research Viability of Franchise Model for E2 Visa Candidates

[SuzyQuant]

Objective:

To determine the viability of establishing a franchise model for our real estate and Airbnb business that aligns with E2 visa requirements, ensuring it is a strong candidate for attracting foreign investors.

Scope of Work:

1. E2 Visa Compliance:

• Investment Requirements: Assess the adequacy of the proposed investment in cleaning materials, decorative items, and other operational assets to meet the "substantial investment" criteria.
• Ownership and Control: Verify that the franchisee's 50% ownership and 100% operational control comply with E2 visa regulations.
• Active Involvement: Ensure that the franchisee's role in managing the business meets the requirement for active involvement in directing and developing the enterprise.

2. Legal Structure:

• Equity Forfeiture Clause: Evaluate the legality and enforceability of the clause requiring franchisees to stay in the country for 10 years to retain equity, and the conditions under which equity is forfeited if they leave for more than 90 days.
• Contract Compliance: Ensure all franchise agreements comply with U.S. labor and contract laws, particularly concerning the forfeiture clause and operational control.

3. Business Viability:

• Economic Impact: Analyze the potential economic impact of hiring local workers for landscaping, gardening, cleaning, and hospitality services.
• Marginality Test: Confirm that the business can generate more than just enough income to provide a living for the investor and their family, demonstrating it is not marginal.

4. Operational Strategy:

• Asset Ownership: Review the strategy for the business to own all cleaning materials, pillows, blankets, and decorative items to support the business's viability.
• Franchise Model: Assess the overall franchise model's structure and its alignment with E2 visa requirements, including the support and training provided to franchisees.

5. Risk Assessment:

• Legal Risks: Identify any potential legal risks associated with the proposed business model and the forfeiture clause.
• Compliance Risks: Evaluate the risk of non-compliance with USCIS regulations and other relevant U.S. laws.

Deliverables:

• A comprehensive report detailing the findings of the research, including:
  • Analysis of E2 visa compliance.
  • Legal assessment of the equity forfeiture clause.
  • Evaluation of business viability and economic impact.
  • Recommendations for any necessary adjustments to the business model to enhance compliance and viability.

Deadline: [Specify a reasonable deadline based on your business needs]
Contact: [Provide contact information for follow-up questions or clarifications]