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1851 Project: News of the Moment
Franchises Look To Visa Program To Lock in Foreign Investors
<a href="http://online.wsj.com/home-page?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">The Wall Street Journal</a> reports on the increasingly popular&nbsp;EB-5 program, which allows foreign investors to obtain permanent residency by investing in U.S. business.&nbsp;
As franchises struggle to find buyers who can secure financing, a handful are turning to a group of budding owners with cash in hand: wealthy immigrants looking for a green card.
Chains such as <a href="http://www.yoblendz.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">YoBlendz</a>, <a href="http://www.elementsmassage.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Elements Therapeutic Massage</a> and <a href="http://www.batterygiant.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Battery Giant</a> have begun pitching themselves to well-heeled foreign buyers using so-called EB-5 visas as a selling point. The federal program, launched in 1990, gives foreign nationals the chance to obtain permanent residency by investing a minimum of $500,000 in a U.S. business.
The catch: The investment must create at least 10 new jobs within two years, or the foreign investor is sent back home.
Despite the risk, franchisers see it as a chance to lure buyers who are set up to seal a deal quickly. And for foreign applicants who lack the entrepreneurial chops to launch a venture from scratch, franchises offer a ready-made business model with a proven record, says Stephen Caldeira, president of the <a href="http://www.franchise.org/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">International Franchise Association</a>, a franchising trade group.
&#8220;We&#8217;re seeing growing demand from franchisers for well-capitalized investors, and EB-5 applicants see franchising as a safer bet, in terms of an investment,&#8221; Mr. Caldeira says.
Last year, 6,343 foreign nationals applied to the EB-5 program, up from 6,040 in 2012, and just 470 in 2006, according to the latest data from <a href="http://www.uscis.gov/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">U.S. Citizenship and Immigration Services</a>. The agency estimates that as of September 2013, the program has raised more than $8.6 billion and has created some 57,300 jobs.
Interest in the program has skyrocketed since the financial crisis, as traditional forms of financing dried up, immigration lawyers say. Several big companies have tapped the once-dormant program to fund huge projects through hundreds of foreign investors, including <a href="http://www.marriott.com/marriott/aboutmarriott.mi?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Marriott International Inc</a>., <a href="http://www.sonypictures.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Sony Pictures Entertainment</a>, and the developers of the <a href="http://www.barclayscenter.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Barclays Center</a>, home of the National Basketball Association&#8217;s <a href="http://www.nba.com/nets/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">Brooklyn Nets</a>.
Read more by clicking:
<a href="http://www.usatoday.com/story/money/business/2014/01/30/super-bowl-commercials-super-bowl-advertisements/5038865/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchises-look-to-visa-program-to-lock-in-foreign-investors-543" target="_blank" rel="nofollow" target="_blank">http://online.wsj.com/news/articles/SB10001424052702303465004579324104108839042?KEYWORDS=franchises&amp;mg=reno64-wsj&amp;url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303465004579324104108839042.html%3FKEYWORDS%3Dfranchises</a>

1851 Franchise

1851 Project: News of the Moment

Franchises Look To Visa Program To Lock in Foreign Investors

The Wall Street Journal reports on the increasingly popular EB-5 program, which allows foreign investors to obtain permanent residency by investing in U.S. business. 

As franchises struggle to find.....

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

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Building&nbsp;<a href="https://1851franchise.com/how-do-you-build-a-franchise-business-plan-2717037">a business plan</a> is a crucial operational step for any entrepreneur. But how do I build a business plan for a franchise that complements the franchisor’s system while addressing the unique needs of a given location? In this guide with expert tips, you’ll learn how to craft a thoughtful, actionable franchise business plan.<h2>Start With The Franchisor’s System In Mind</h2>So, how do I build a business plan for a franchise? Well, avoiding repetition is a good start.“You specifically don’t want to duplicate what your franchisor is doing,” said long-time multi-unit&nbsp;<a href="https://www.solafranchising.com/">Sola Salons</a> franchise owner,&nbsp;<a href="https://www.linkedin.com/in/haynes-chidsey-6a36a06/">Haynes Chidsey</a>. “There’s a reason why you join a franchise system and why you pay the fees and costs associated with it.”A strong franchise business plan should take advantage of the resources, marketing and operational systems that the franchisor provides (while utilizing daily experiences at the local level to help fine-tune what matters locally).<h2>Focus On Local Priorities</h2>A franchise business plan should be&nbsp;<a href="https://1851franchise.com/strategicfranchising/how-to-build-a-strong-franchise-brand-presence-in-your-local-community-2729771">locally focused</a>. It should reflect the unique characteristics and needs of each local market. It’s essential to identify opportunities to attract local customers, build relationships within the community at the local level and tailor services to the regional preferences required by each market.“Be complementary to what your system provides,” said Chidsey. “Stay locally focused. That’s what I would say is key. Avoid mistakes by focusing on the magic.”<h2>Practical Steps For Building Your Plan</h2><ol><li>Assess Both Market And Competition – Build a thorough understanding of local demand, competitors and potential customer base. This will lead to more informed projections. &nbsp;</li><li>Define Financial Goals – Include startup costs, ongoing fees and revenue expectations in the business plan. Staffing, rent, marketing and working capital should all be factored in. &nbsp;</li><li>Leverage Franchisor Resources – Incorporate the systems, training and support offered by the franchisor (instead of reinventing processes). &nbsp;</li><li>Set Operational Priorities – Decide which areas require hands-on local management (as opposed to areas guided by the franchisor). Focus energy where it’s most impactful. &nbsp;</li><li>Review And Adjust – A business plan shouldn’t be static. So, track performance, adjust strategies and refine priorities as the franchised business scales.</li></ol><h2>The Takeaway</h2><a href="https://1851franchise.com/chapter-3-developing-a-franchise-business-plan-2722586">Creating a franchise business plan</a> is about balance. With a clear plan that integrates franchisor resources and local insight, franchisees can confidently move forward, knowing their businesses are structured to thrive. Leveraging a proven franchisor system to make smart, locally relevant decisions is key. By slowing down to go fast, and catering to the local trends or demands unique to each market, zees can more effectively build a roadmap and franchise business plan capable of delivering long-term success.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How do I build a business plan for a franchise?

How do I build a business plan for a franchise? In this guide with expert tips, learn how to build a plan that leverages franchisor resources, focuses on local priorities and brings long-term success.

Franchises Look To Visa Program To Lock in Foreign Investors

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