When Franchises Qualify for an L1 Visa: Common Ownership

Securing an L-1 visa for franchises involves understanding the critical factor of the qualifying relationship between the entities involved. Here’s a detailed explanation of when a franchise qualifies for an L-1 visa and when it does not, with insights from the Matter of Schick decision.

Qualifying Relationship Requirement

To establish a qualifying relationship for an L-1 visa, the petitioner must demonstrate ownership and control between the foreign and U.S. entities. This relationship must be direct and involve common ownership.

When Franchises Qualify

1. Ownership and Control: The franchise may qualify if the petitioner can show that the foreign and U.S. entities are commonly owned and controlled. For example, if a parent company owns foreign and U.S. franchises, this could meet the criteria.
2. Documentary Evidence: The petitioner must provide credible evidence such as corporate documents, ownership records, and financial statements to prove the qualifying relationship.

When Franchises Do Not Qualify

1. Independent Ownership: If the franchise agreement only allows two independently owned companies to use a name or product, this does not establish a qualifying relationship. The agreement must reflect more than just a licensing arrangement.
2. Lack of Common Ownership: Franchises operating under separate ownership without a joint parent company or shared control do not meet the L-1 visa requirements.

Insight from the Matter of Schick Decision

The Matter of Schick decision provides a clear example of when a franchise does not qualify for an L-1 visa:

• Case Summary: An American company, which signed a contract with a French company for an exclusive license to buy and import machinery, was not considered connected to the French firm through shared ownership and management. The relationship was purely contractual and subject to termination.
• Key Points from the Decision:
  • Contractual Relationship: The American and French companies were only connected through a license agreement, which is insufficient for L-1 visa qualification.
  • No Common Ownership: The lack of joint ownership or investment between the companies highlighted the necessity of a more permanent association for L-1 eligibility.

This decision emphasizes that a mere contractual agreement does not establish the qualifying relationship required for an L-1 visa.

Supporting Documentation

Claims of a qualifying relationship must be backed by solid evidence. Unsupported statements from the foreign entity’s shareholder or the franchisor are insufficient. USCIS expects relevant and credible documentation to substantiate the relationship.

• Corporate Records: Articles of incorporation, bylaws, and organizational charts.
• Financial Statements: Showing common ownership or financial control.
• Contracts: Detailed agreements outlining the relationship beyond mere licensing.

Key Takeaways

• Ownership and Control: Essential for L-1 visa qualification.
• Credible Evidence: Necessary to support the relationship claim.
• Independent Entities: Typically do not qualify without common ownership.

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