Are there restrictions on franchises under the L-1 visa?

The L-1 visa, intended for intracompany transfers within multinational companies, has specific criteria regarding the relationship between the parent company and the branch or affiliate that wishes to operate in the United States. Generally speaking, a franchise, by its very nature, can present challenges in meeting the L-1 requirements, as this visa demands a clear and structured corporate connection between the entities involved.

For a company to qualify for transfer under the L-1, there must be a consistent hierarchical and ownership relationship between the foreign company and the U.S. entity. In the case of franchises, where the local operation is often managed by third parties under a licensing model and franchise agreements, it may be difficult to demonstrate the controlling relationship required.

Therefore, simply acquiring or operating a franchise does not, as a rule, meet the requirements for the L-1, unless there is a legal structure demonstrating sufficient corporate control and direct linkage between the headquarters and the operation in the United States.

It is important to emphasize that each case is unique. If a company intends to work with franchises or adopt franchise models in the U.S. market, it is essential to seek guidance from immigration and corporate law specialists. These professionals can evaluate the business structure and advise if restructuring is necessary to establish an intracompany transfer relationship that fits the L-1 criteria.

Another recommendation is to be cautious of offers or marketing campaigns that promise quick solutions or approval guarantees. United States immigration laws are complex, and changing a business structure requires detailed planning and strict compliance with all legal requirements. Maintaining compliance with the laws and seeking specialized legal analysis can prevent unpleasant surprises and ensure that the strategy adopted aligns with the criteria required by the United States Immigration Department.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.