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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116716
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am interested in subway franchise.Here are details:- i am

Customer Question

Hello - I am interested in subway franchise.Here are details:- i am on h1b and my wife has EAD (employment auth).
- i am not allowed to work on any other jobs but my wife can start a business.
-She is interested in joining Subway franchise,however subway only allows green card holder/citizens to take franchise.
-She has potential partnership opprtunity with existing subway franchise owner in NJ,USAQuestions:
- Can she partner with existing subway franchise on EAD?
- If not,is there any other way to get involve with this partnership..i.e do partnership as passive inverstor?
-Current subway franchise owners has offered existing subway franchise/equipments for 60k + shop rental on monthly basis and other expenses,but owner is open for partnership.
-She is trying to find a way to advantage of subway franchise opprtunity on EAD.Could you pls help outline all possible options for her to get involve with subway franchise (active or passive particiapt)
-If she does partneship as passive investor,what type of documentation may be required?how do we make sure her interest/investment is protected as she may not main franchise holder.
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
I am afraid that Subway can make their own franchise rules, so if they will not allow a non-greencard holder or non-citizen to own a franchise there is no real way around that requirement. Your wife and you both could become a partner in the corporation with others who are greencard and have a contract with them that grants your wife shares in the proceeds of the franchise without including her in the franchise ownership application.
Another thing you can try is to apply for a change of status for your wife to get an EB-5 visa, which is an investor visa that allows her to open and invest in businesses that will create 10 or more jobs in the US, which would need you to sit with a local immigration attorney to review her eligibility for the status based on the franchise opportunity. However, before doing this, you need to check with Subway and call them regarding them allowing an EB-5 holder to own a franchise. If they will allow her to have a franchise as an EB-5 holder that would likely be the best avenue rather than trying to get a contract with the current owner to give her a share of the profits and keep the franchise in his name only to circumvent the Subway requirements.
If she does this with a contract, you need to get a local attorney to draft the contract to protect her interests and to insure that the partner does not have any means to keep profits from her or kick her out of the partnership for no reason and take advantage of her. The contract needs to have buyout terms and terms to insure she receives the share of profits agreed upon.

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