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Foreigners invest in Sonic through the EB-5 visa program
A number of international investors are responsible for the entrance of fast-food chain Sonic into the South Florida area, as 50 new restaurants are expected to open in Miami-Dade and Broward Counties over the next four years, Miami Today reports.
The foreign investors are capitalizing on the federal EB-5 visa program, which allows them to gain U.S. green card eligibility through an investment of $1 million (or $500,000 in some areas) in an American company or project that creates or maintains 10 full-time jobs.
Some international investors that are helping to finance the Sonic expansion include foreigners from China, Mexico and Venezuela, according to the news provider.
Development firm QueensFort Capital Corp., which is based in Miami, has purchased exclusive rights to construct and operate Sonic establishments, which will be entering the two South Florida counties.
"To control this market with a brand name like Sonic that has been around for more than 50 years is exciting for us as franchisee and for prospective EB-5 investors, who are looking for an EB-5 vehicle to access a green card in the US," Carolina Oliva, QueensFort Capital's senior vice president told the news provider.
Sonic is currently the largest drive-in restaurant chain in the U.S., with 3,700 locations throughout the country, the news source said.
QueensFort is reportedly seeking six to eight investors for each package, which includes two to four restaurants. The first of the fast-food restaurants are scheduled to open during the next six months in Homestead and Fort Lauderdale Beach, followed by Miami Gardens, which is near Sun Life Stadium.
Some other targeted locations for the Sonic brand are Miami Beach, South Miami and Kendall, according to the news source. Oliva said that QueensFort is planning to purchase approximately 98 percent of the new sites.
Currently, the firm has between 30 and 40 potential sites lined up and Oliva says that the company is planning to take advantage of places that currently have buyer-friendly market conditions.
"We are purchasing those sites at historically low rates… at about 50 percent discount," she told the news provider. "Certainly now is the time to be buying land."
As local funding can be difficult to find in the still-struggling economy, the EB-5 program allows projects like the Sonic expansion to continue through the financial assistance of international investors, the news source said.