Are there restrictions on franchises under the L-1?

The L-1 visa was designed for intracompany transfers, with a well-defined corporate connection between the foreign company and the branch, affiliate, or subsidiary in the United States. This is precisely where the franchise model may run into difficulties.

By nature, a franchise typically operates through licensing of a brand and operational standards, with the franchisee running the business relatively independently. This arrangement does not always demonstrate the type of ownership and corporate control that the L-1 requires between the entities.

When assessing viability, the following factors are commonly examined:

• The existence of an ownership or control relationship between the companies, not just a franchise agreement.
• The legal structure linking the foreign operation to the U.S. entity.
• The potential need, in some cases, to restructure the arrangement to meet the requirements.

Because this is a sensitive scenario in which legal form makes a difference, the most prudent approach is to seek specialized guidance before moving forward, evaluating whether the current structure demonstrates the required corporate tie or whether adjustments are needed.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.