NUANCES OF BUYING A FRANCHISE IN THE US

Investing your money in popular and promoted brands is a good decision, so entrepreneurs often choose to buy a franchise in the United States. Opening a business under the name of a well-known company with high ratings is very cost-effective, because there is no need to engage in development and growth from scratch. It is enough to conclude a contract and formalize the transaction, and in a short time to immerse yourself in the management of the business.

Managing a franchise business in the US can be quite a complicated process, especially if you don't have experience in the states yet. Most Russian and CIS business owners are not familiar with the US market, so they risk failure already at the first steps. Involving professionals at the franchise selection stage can help you avoid mistakes, as well as financial and time losses.

WHY IS IT CONVENIENT TO WORK ON A FRANCHISE IN THE USA?

If you plan to move to the states, it is better to show that you plan to invest in a business that is likely to be successful. In the case of a franchise, if it's a well-known franchise, it's easier to show its potential.

Three advantages of working for a franchise in the U.S.:

1. FAST START In fact, you acquire an already "promoted" business in the United States. You do not need to invest in advertising and develop promotion, it is enough to maintain your project and continue to focus on expanding the target audience.

2. DONE TESTED SOLUTION When launching your personal brand, there is always a risk of mistakes. By choosing a franchise, it is possible to minimize all failures because you immediately start working on behalf of a company that is known in the U.S. market.

3. E-2 OR EB-5 VISA If certain requirements are met, a franchise business is eligible to apply for an E-2 or EB-5 visa.

WHAT TO CONSIDER BEFORE BUYING A FRANCHISE IN THE USA?

Any businessperson needs to pay attention to the following points before the deal:

• FRANCHISE TERRITORY;
• BRAND RECOGNITION;
• THE STATE WHERE THE WORK IS PLANNED;
• ANTICIPATED INCOME;
• PARTNER'S REQUIREMENTS;
• THE COST OF RENTING PREMISES.

As a rule, in small towns the price of a franchise is lower than in larger cities. It is also necessary to take into account the peculiarities of business registration, taxation in a particular state and in the United States as a whole.

This article is intended for informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for advice from qualified legal counsel familiar with your specific circumstances. No attorney-client relationship is created by the provision of this information.