eb5exclusive

When traditional sources of financing to fund U.S. franchise restaurant projects dried up in 2007 many business developers and restaurateurs turned the EB-5 Immigrant Investor Program for financing. And according to a recent South Florida Sun-Sentinel report, EB-5 financing has become front and center for many restaurant chains expanding into South Florida.

According to the report, Florida Franchisees for a variety of U.S. national restaurant chains are aggressively seeking funds from international investors interested in participating in the U.S. Citizenship and Immigration Service’s Immigrant Investor (USCIS) EB-5 program.

The EB-5 visa is a path to permanent residency for foreign investors who want to call the U.S. home. To qualify participants must invest at least $500,000 in a USCIS approved business that creates at least 10 U.S. jobs.

Sonic Hamburgers was one of the first chains in South Florida to attract EB-5 investors to the area about two years ago, said Fred Burgess, President of Exclusive Visas of Weston, FL, a consulting firm that specializes in the EB-5 program. A myriad of franchises followed Sonic in South Florida through EB-5 financing, according to Mr. Burgess.

Perhaps most successful so far is the franchise group bringing Voodoo BBQ of New Orleans to South Florida. The group has already secured 10 investors through EB-5 for $5 million (ten positions at $500,000 each) to help finance four units, including its newly opened Pembroke Pines spot. Additionally, Voodoo BBQ & Grill has nearly finished a second offering with 10 more investors — for $5 million — to fund four more locations, Mr. Burgess said.  

EB-5 investors in the South Florida Voodoo BBQ franchise hail from China, Canada and Nigeria, among other countries. “We had visa approvals for the project in as little as five months,” said Mr. Burgess.

In addition to Voodoo BBQ & Grill, Twin Peaks, a sports theme restaurant/bar designed to compete with such chains as Hooters is among a growing list of restaurant chains currently tapping into the South Florida via the EB-5 program, according to the Sun-Sentinel report.  

Advocates see the program as “win-win,” spurring U.S. jobs at a time when U.S. credit remains limited and demand for U.S. residency is high, according to the report.

Franchises are also attractive for investors, since they tend to succeed at a higher rate than stand-alone businesses, according to Mr. Burgess, who is traveling in the United Arab Emirates and India this month to meet with potential EB-5 investors.

Many EB-5 projects including VooDoo BBQ & Grill and Twin Peaks are presented under the Palm Beach Regional Center. The Palm Beach Regional Center, which has an outstanding reputation for presenting quality EB-5 projects, is one of the few Regional Centers in the United States that can boast a 100% success rate on all previous I-526 petitions. The Palm Beach Regional Center operates in nine Florida Counties including Miami-Dade, Broward and Palm Beach.

“Franchise  investment offerings have been very appealing to EB-5 agents, consultants, and immigration attorneys as well as investors because they are a relatively small in volume ($500,000 per investor), a good mix of developer cash and EB-5 funds, and because there is a history of approvals with the Regional Center on restaurant projects. And with some approvals coming in as little as 4 months we expect interest to continue in South Florida franchise restaurants,” said Joe Sloboda Vice President of Exclusive Visas.

Contact Exclusive Visas to Discuss Franchise Restaurant Investment Opportunities