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Taking over a franchise

Only for UK Tier 1 (Entrepreneur) points system. This route is now closed to new applicants.

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Hammad Zafar
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Taking over a franchise

Post by Hammad Zafar » Sun Feb 17, 2019 11:52 am

Hello Guys, I am applying for Tier 1 Entrepreneur Visa and need a bit of a clarification.

I have access to £200,000. Recently I was on a Business Visit in the UK and explored several options for the business and finally decided to take over an existing franchise known as Muffin Break? My query is that the owner has already agreed to give me his franchise for £200,000 which includes transferring and purchasing all the employment contracts,stocks, fixtures and fittings, but when I go to the UK, I will be transferring the money to the Head Office of Muffin break and not the owner. Do you think I can do that because I am puzzled as it says in the Policy guidelines that:

I quote: ''buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),

Or do you think I should join the current franchisee business by becoming 50% director under his company name and then invest £200,000 in his current franchise?

Help will be much appreciated.

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Re: Taking over a franchise

Post by marcnath » Sun Feb 17, 2019 12:22 pm

Please don't tag your questions to other people's posts !!!.
I am separating it out now.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by marcnath » Sun Feb 17, 2019 12:27 pm

Hammad Zafar wrote:
Sun Feb 17, 2019 11:52 am
Hello Guys, I am applying for Tier 1 Entrepreneur Visa and need a bit of a clarification.

I have access to £200,000. Recently I was on a Business Visit in the UK and explored several options for the business and finally decided to take over an existing franchise known as Muffin Break? My query is that the owner has already agreed to give me his franchise for £200,000 which includes transferring and purchasing all the employment contracts,stocks, fixtures and fittings, but when I go to the UK, I will be transferring the money to the Head Office of Muffin break and not the owner. Do you think I can do that because I am puzzled as it says in the Policy guidelines that:

I quote: ''buying any business from a previous owner, where the money ultimately goes to that previous owner (irrespective of whether it is received or held directly or indirectly by that previous owner) rather than into the business being purchased (This applies regardless of whether the money is channelled through the business en route to the previous owner, for example by means of the applicant or business purchasing ‘goodwill’ or other assets which were previously part of the business.),

Or do you think I should join the current franchisee business by becoming 50% director under his company name and then invest £200,000 in his current franchise?

Help will be much appreciated.
If the owner of Head office is then transferring the money to the previous owner/franchisee, then the portion paid to the previous owner cannot be included in the investment.

You are better off talking to a lawyer on the best way to structure the investment. From an immigration rules point of view, any money that eventually goes to the previous owner is excluded from the investment. If you are investing 200K into the current business and get 50% shares in that (as long as those are new shares and not those of the previous owner), it should be ok.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Sun Feb 17, 2019 1:56 pm

Hello Marcnath,

Thanks a lot for your prompt reply. Indeed the head office will transfer the money to the previous owner but do you think that is of my concern? As long as I am not transferring the money directly to the previous owner, don't you think it makes sense?

Furthermore, in order to join the current franchisee into his business, what would I need to write in my business plan? I have already got my business plan ready but it was made in regards to ''taking over'' the current franchise, now do you think where ever I have mentioned ''I will purchase or take over the business'' should replace it with ''join the business as 50% shareholder and director'' and rephrase the sentence accordingly?

You mentioned as long as I get 50% shares in the current business (AS LONG AS THEY ARE NEW SHARES)! Can you kindly explain what do you mean by new shares?

Many thanks once again.

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Re: Taking over a franchise

Post by marcnath » Sun Feb 17, 2019 4:10 pm

Hammad Zafar wrote:
Sun Feb 17, 2019 1:56 pm
Hello Marcnath,

Thanks a lot for your prompt reply. Indeed the head office will transfer the money to the previous owner but do you think that is of my concern? As long as I am not transferring the money directly to the previous owner, don't you think it makes sense?

Furthermore, in order to join the current franchisee into his business, what would I need to write in my business plan? I have already got my business plan ready but it was made in regards to ''taking over'' the current franchise, now do you think where ever I have mentioned ''I will purchase or take over the business'' should replace it with ''join the business as 50% shareholder and director'' and rephrase the sentence accordingly?

You mentioned as long as I get 50% shares in the current business (AS LONG AS THEY ARE NEW SHARES)! Can you kindly explain what do you mean by new shares?

Many thanks once again.
The immigration rules are very explicit - "funds transferred to previous owner, directly or indirectly, ....." and so on. Obviously, whether HO will figure that out is a different question since the books will only show transfer to the Franchisor. Obviously they can ask for other documents such as your franchise agreement, etc. and if it shows up somewhere then they will discount the amount.

You don't necessarily have to change your business plan - decisions can change once you actually get your visa. You can even do a totally different business.

50% new shares just means you are not buying the current owner's shares - which would mean you are paying the business owner.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Sun Feb 17, 2019 5:43 pm

As you have mentioned '' whether HO will figure that out is a different question since the books will only show transfer to the Franchisor. Obviously they can ask for other documents such as your franchise agreement, etc. and if it shows up somewhere then they will discount the amount.''
they can ask for other documents now or will this be asked to me after 3.5 years during extension time? Or is it possible if they can ask me about this during initial phase now during interview as well?

Secondly, as you mentioned, ''You don't necessarily have to change your business plan - decisions can change once you actually get your visa. You can even do a totally different business.''
My business plan currently states at a few places that I am purchasing the business and taking over fixtures and fittings and employment contracts from the previous owner. So, my query is that should I remove such sentences and replace them with ''becoming a partner'' or maybe a 50% shareholder something like that?

I will be investing the money into refurbishing the whole store and for that I will change the whole layout of the franchise, buy new coffee machines, buy fixtures and fittings all new. So in order to do that, what the process of getting 50% shares of the franchise? Like once I go to the UK, what's the process I acquire 50% shares and become 50% director of the company in order to invest £200,000 in the current franchise?
I would't want to pay the current business owner, just need to become his 50% partner so what will be the procedure I have to follow to become the partner?

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Re: Taking over a franchise

Post by marcnath » Sun Feb 17, 2019 7:55 pm

Hammad Zafar wrote:
Sun Feb 17, 2019 5:43 pm
As you have mentioned '' whether HO will figure that out is a different question since the books will only show transfer to the Franchisor. Obviously they can ask for other documents such as your franchise agreement, etc. and if it shows up somewhere then they will discount the amount.''
they can ask for other documents now or will this be asked to me after 3.5 years during extension time? Or is it possible if they can ask me about this during initial phase now during interview as well?
If they ask, it will be as part of your extension application. HO can't just randomly ask you for documents.
Hammad Zafar wrote:
Sun Feb 17, 2019 5:43 pm

Secondly, as you mentioned, ''You don't necessarily have to change your business plan - decisions can change once you actually get your visa. You can even do a totally different business.''
My business plan currently states at a few places that I am purchasing the business and taking over fixtures and fittings and employment contracts from the previous owner. So, my query is that should I remove such sentences and replace them with ''becoming a partner'' or maybe a 50% shareholder something like that?
Entirely up to you
Hammad Zafar wrote:
Sun Feb 17, 2019 5:43 pm


I will be investing the money into refurbishing the whole store and for that I will change the whole layout of the franchise, buy new coffee machines, buy fixtures and fittings all new. So in order to do that, what the process of getting 50% shares of the franchise? Like once I go to the UK, what's the process I acquire 50% shares and become 50% director of the company in order to invest £200,000 in the current franchise?
I would't want to pay the current business owner, just need to become his 50% partner so what will be the procedure I have to follow to become the partner?
I can't advice you on how to set up your business - there are many different ways of partnering. If you are not clear about that, please consult a lawyer.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Sun Feb 17, 2019 8:11 pm

As you said, ''If they ask, it will be as part of your extension application. HO can't just randomly ask you for documents.''
-This means that if I apply now and show that I will be transferring money to the Head office of Muffin Break and not the franchisee, then they can question me now as to whether the current franchisee will get the money or not? What you are trying to say is that this question will arise after 3.5 years and will not be part of my initial application now including the interview?

What do you think is a better option in my case? Whether to go in partnership with the current franchisee and invest £200,000 in the business or just take over the business from the current franchisee by transferring the money from by business account to the Head Office account once I am in the UK? Which option will be favorable for me to get through this initial phase of getting the visa?

Also, I have money kept by myself for less than 90 consecutive days in my account. I have had the money kept in Pakistani Rupee for 8 months in my Rupee Account and now just 10 days ago I transferred them from my Rupee Account to GBP Account- both accounts in the same bank.
--My Query is: it says in the Policy Guidelines for Tier 1 Entrepreneur VIsa Table C- Row 4 that, ''Money held by your for less than 90 consecutive days, ending no earlier than 31 days before the date of application.
''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?

Many thanks

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Re: Taking over a franchise

Post by marcnath » Sun Feb 17, 2019 8:23 pm

Hammad Zafar wrote:
Sun Feb 17, 2019 8:11 pm
As you said, ''If they ask, it will be as part of your extension application. HO can't just randomly ask you for documents.''
-This means that if I apply now and show that I will be transferring money to the Head office of Muffin Break and not the franchisee, then they can question me now as to whether the current franchisee will get the money or not? What you are trying to say is that this question will arise after 3.5 years and will not be part of my initial application now including the interview?
At any application stage, whether initial or extension, HO can ask any questions they want to. If you already have the agreements with Franchisor now, they can ask you for that. But if you don't, then they can only ask you for those at extension.

So, yes, they can ask you whether the current franchisee will get the money. But I have no idea if they will ask that question.
Hammad Zafar wrote:
Sun Feb 17, 2019 8:11 pm


What do you think is a better option in my case? Whether to go in partnership with the current franchisee and invest £200,000 in the business or just take over the business from the current franchisee by transferring the money from by business account to the Head Office account once I am in the UK? Which option will be favorable for me to get through this initial phase of getting the visa?
The best chances of getting a visa is by doing what is best for your business.
Hammad Zafar wrote:
Sun Feb 17, 2019 8:11 pm

Also, I have money kept by myself for less than 90 consecutive days in my account. I have had the money kept in Pakistani Rupee for 8 months in my Rupee Account and now just 10 days ago I transferred them from my Rupee Account to GBP Account- both accounts in the same bank.
--My Query is: it says in the Policy Guidelines for Tier 1 Entrepreneur VIsa Table C- Row 4 that, ''Money held by your for less than 90 consecutive days, ending no earlier than 31 days before the date of application.
''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?

Many thanks
The highlighted part
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Mon Feb 18, 2019 6:20 am

As you mentioned ''At any application stage, whether initial or extension, HO can ask any questions they want to. If you already have the agreements with Franchisor now, they can ask you for that. But if you don't, then they can only ask you for those at extension.
So, yes, they can ask you whether the current franchisee will get the money. But I have no idea if they will ask that question.''

Query in regards to above: I haven't had any written agreement with the head office or the current franchisee. I just had a meeting at the head office of Muffin Break where the current franchisee was present and we just had a verbal agreement and the Head Office approved me to become a prospective franchisee on receipt of getting the Tier 1 Entrepreneur Visa. I have mentioned this in my business plan that I just have had a verbal agreement and no written agreement with the head office who have approved me to take over the franchise on receipt of getting the visa.

Do you think by mentioning this in my business plan, they will not ask me this question as to who will receive the money and whether the head office will transfer this money to the current franchisee or not? Bcz as you mentioned in your previous reply that if I haven't had any agreement with the franchisor, chances are they won't ask me at this initial stage during interview and raise any concern?


Secondly, as you mentioned, ''The best chances of getting a visa is by doing what is best for your business''.

Query: Just want to ask what is mostly people doing? Do they become a partner of 50% when they join an existing franchise business in tier 1 Entrepreneur visa or do mostly people take over the business. What's the common trend?

Thirdly, ''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?

You said about this sentence ''Ending no earlier than 31 days before the date of application means I have to produce a statement of £200,000 in my account within 31 days before the date of application and according to you it doesn't mean that I have to keep the money in my account for 31 days before the date of application right?

Query: As I transferred funds recently from my Rupee account where they were kept for 8 months and now I have transferred them to my GBP account but they have just been kept for 10 days. So do you think I can make the application on just providing a bank statement of funds showing £200,000 in my GBP Account for only 10 days? I am providing all the evidence of where the funds came from such as Gift certificate from my parents who gifted me the money, letter from the First Class Magistrate validating the authenticity of the signatures of my parents on the Gift Certificate who gifted the money and myself who received it. And also I will be showing bank statements of my GBP account where the money is now present from the past 10 days and also will show bank statement of Rupee account where the money was initially transferred to me from parents who gifted it and it is the same account where i kept the money for 8 months initially and then recently transferred it into my GBP Account.

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Re: Taking over a franchise

Post by marcnath » Mon Feb 18, 2019 12:19 pm

Hammad Zafar wrote:
Mon Feb 18, 2019 6:20 am
As you mentioned ''At any application stage, whether initial or extension, HO can ask any questions they want to. If you already have the agreements with Franchisor now, they can ask you for that. But if you don't, then they can only ask you for those at extension.
So, yes, they can ask you whether the current franchisee will get the money. But I have no idea if they will ask that question.''

Query in regards to above: I haven't had any written agreement with the head office or the current franchisee. I just had a meeting at the head office of Muffin Break where the current franchisee was present and we just had a verbal agreement and the Head Office approved me to become a prospective franchisee on receipt of getting the Tier 1 Entrepreneur Visa. I have mentioned this in my business plan that I just have had a verbal agreement and no written agreement with the head office who have approved me to take over the franchise on receipt of getting the visa.

Do you think by mentioning this in my business plan, they will not ask me this question as to who will receive the money and whether the head office will transfer this money to the current franchisee or not? Bcz as you mentioned in your previous reply that if I haven't had any agreement with the franchisor, chances are they won't ask me at this initial stage during interview and raise any concern?
I repeat, I cannot guess what questions HO may ask. They can issue visas without any interview or they can ask all sort of questions.

If I were in your place, I would just focus on the business opportunity and your plans to make it a success. Whether you buy a new territory or take over an existing one is really details that shouldn't matter to the overall business plan. But that is my personal opinion.
Hammad Zafar wrote:
Mon Feb 18, 2019 6:20 am


Secondly, as you mentioned, ''The best chances of getting a visa is by doing what is best for your business''.

Query: Just want to ask what is mostly people doing? Do they become a partner of 50% when they join an existing franchise business in tier 1 Entrepreneur visa or do mostly people take over the business. What's the common trend?
I am not aware of any trend. And I am not sure if anyone here would know. Remember that only a small fraction of the immigrants use this forum and that is mostly when they have problems or questions.
Hammad Zafar wrote:
Mon Feb 18, 2019 6:20 am

Thirdly, ''ENDING NO EARLIER THAN 31 BEFORE THE DATE OF APPLICATION''. Does this bold sentence means I have to keep money in the account for 31 days before making the application or does it mean I have to produce a bank statement of £200,000 within 31 days before the date of application?

You said about this sentence ''Ending no earlier than 31 days before the date of application means I have to produce a statement of £200,000 in my account within 31 days before the date of application and according to you it doesn't mean that I have to keep the money in my account for 31 days before the date of application right?

Query: As I transferred funds recently from my Rupee account where they were kept for 8 months and now I have transferred them to my GBP account but they have just been kept for 10 days. So do you think I can make the application on just providing a bank statement of funds showing £200,000 in my GBP Account for only 10 days? I am providing all the evidence of where the funds came from such as Gift certificate from my parents who gifted me the money, letter from the First Class Magistrate validating the authenticity of the signatures of my parents on the Gift Certificate who gifted the money and myself who received it. And also I will be showing bank statements of my GBP account where the money is now present from the past 10 days and also will show bank statement of Rupee account where the money was initially transferred to me from parents who gifted it and it is the same account where i kept the money for 8 months initially and then recently transferred it into my GBP Account.
You will need to show that you had the money for the entire 90 days and that you are continuing to have the money. So, you will have to submit evidence of both your Rupee account and GBP account. If the money has been in your personal account for 90 days, there is no need to provide evidence of source of funds.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Mon Feb 18, 2019 1:22 pm

As you mentioned: ''You will need to show that you had the money for the entire 90 days and that you are continuing to have the money. So, you will have to submit evidence of both your Rupee account and GBP account. If the money has been in your personal account for 90 days, there is no need to provide evidence of source of funds.''

I am maintaining 3 accounts in the same bank from the past 8 months.

Account1: Rupee Savings Account: which had £200,000 from the past 8 months but then I recently transferred the £200,000 to my

Account 2: Rupee Current Account: Which has my Maintenance money from the past 8 months of around £10,000.

Account 3: GBP Savings Account: this is the account in which I recently transferred £200,000 from Account1 (Rupee Savings Account) where I was maintaining it from the past 8 months. But, now I have £200,000 in my GBP Savings Account for which I will show the statement of around 15 days. Do you think these days are enough for the visa application?

I will be submitting statements of all three accounts which includes Account 1 where I was maintaining £200,000 from the past 8 months, Account 2 is where I have £10,000 for Maintenance and Account 3 is GBP account where I have my money now of £200,000.

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Re: Taking over a franchise

Post by Hammad Zafar » Mon Feb 18, 2019 1:30 pm

In continuation to my previous reply, as I am not maintaining the money in my GBP Account where the money was transferred 15 days ago, but I will be providing evidence of my Rupee account from where I transferred money to this GBP account, will it be fine? Like would this be considered that I have held the money for 90 days? But this 90 days was kept in Rupee account, now in this GBP account where I have the money for 15 days now.

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Re: Taking over a franchise

Post by marcnath » Mon Feb 18, 2019 2:40 pm

Hammad Zafar wrote:
Mon Feb 18, 2019 1:30 pm
In continuation to my previous reply, as I am not maintaining the money in my GBP Account where the money was transferred 15 days ago, but I will be providing evidence of my Rupee account from where I transferred money to this GBP account, will it be fine? Like would this be considered that I have held the money for 90 days? But this 90 days was kept in Rupee account, now in this GBP account where I have the money for 15 days now.
Yes, that should be fine.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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Re: Taking over a franchise

Post by Hammad Zafar » Mon Feb 18, 2019 3:22 pm

Many thanks for your prompt replies.

So you mean to say that it does not matter if I maintain £200,000 in specifically one of my account?
As I transferred the funds from Rupee Account (where money was kept for 8 months) recently to GBP account (where money is held now for 15 days) the funds are held by me in the same bank but the only difference is that I have transferred them from one account to another. So this is fine right and for this, I fall under the category of having funds for more than 90 days and not less than 90 days?

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Re: Taking over a franchise

Post by Tier1newbie » Tue Feb 19, 2019 2:24 pm

Hello

Just wanted to share my experience as I was in the same dilemma when I had applied for the initial application.

If you say that you are buying an existing business, the CW is almost certainly going to look at how much you are paying as goodwill to the previous owners. There are many ways to getting to know what the cusrrent valuation is of the fixtures stock etc that the company holds as all this information is public when any accounts are filed by the company on the companies house website so do not think that you can say that you are buying furniture, fixtures and stock for x amount when it is showing up as a lower figure on the accounts.

I would recommend not starting by saying that how will the CW know the truth as they are smart and initially for your application you would need to take a letter from the franchisor about what business you are looking to buy and get letters from the current owners of the business as well that they have agreed your offer and mention the breakdown as well. You cannot just submit a business plan and say that I am buying this business and they have agreed, you will have to prove it. Also, one more thing to bear is that if you buy a company the current owner will be everywhere, your purchase agreement and many more documents as your solicitor and their solicitor will finalise everything and cover you legally. CW knows this and will catch you if you try to disguise something. They will not follow only the money but look at agreements for the final beneficiary.

Also, you have to create two new job roles and create a net increase of two employments so it does not mean that if you take the business with employees that you are sorted. I would recommend reading the guidelines carefully and also be aware that the caseworker is going to ask you these questions as they know what they need to look for in these cases so just be careful in what you say as your future can depend on it.

Above is for guidance and just my understanding of the rules and how they can check and what information HO might request.

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Re: Taking over a franchise

Post by Hammad Zafar » Tue Feb 19, 2019 4:17 pm

Well I am going to tell the case worker that I am purchasing the business from the head office and not the owner. I had a meeting with the head office of the franchise and they have agreed for me to take over the current franchise and once I go to the UK, will be transferring the money to the head office. So do you think this will be fine for me as no where it will be stated that the money is going to the previous owner?

Also, don't you think this question of whether the money will now go to the head office or previous owner will be asked to me after 3.5 years when I apply for the extension? How can the CW with assurance reject my application now as he won't have any proof now during the interview as to whether I will be transferring the money to the head office or to the previous owner? Because after 3.5 years, they can then ask for legal documents and purchase agreement to see whether the money was transferred to the head office or to the previous owner?

What are your views on this?

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Re: Taking over a franchise

Post by Hammad Zafar » Tue Feb 19, 2019 4:19 pm

Also, did you get the visa? and if yes then what way did you apply? Did you take over the existing franchise or did you join the current franchisee and became 50% director/shareholder and then invested £200,000 in that companies accounts?

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Re: Taking over a franchise

Post by Tier1newbie » Tue Feb 19, 2019 7:37 pm

Hammad Zafar wrote:
Tue Feb 19, 2019 4:17 pm
Well I am going to tell the case worker that I am purchasing the business from the head office and not the owner. I had a meeting with the head office of the franchise and they have agreed for me to take over the current franchise and once I go to the UK, will be transferring the money to the head office. So do you think this will be fine for me as no where it will be stated that the money is going to the previous owner?

According to the guidelines it says that any payment towards the previous owner will not be counted towards your investment. In this case you are paying the head office who is acting as the current owner of the business. It is a very tricky situation where the CW will also think the same way so to clear it out they will want to see the agreement or the paperwork that you sign and what it says as this documentation will have the name of who is selling the business to you and if you are signing this document with the franchisor then they will be technically classified as the seller and they will then look at what assets the company had and calculate how much goodwill you paid to the previous owner

Also, don't you think this question of whether the money will now go to the head office or previous owner will be asked to me after 3.5 years when I apply for the extension? How can the CW with assurance reject my application now as he won't have any proof now during the interview as to whether I will be transferring the money to the head office or to the previous owner? Because after 3.5 years, they can then ask for legal documents and purchase agreement to see whether the money was transferred to the head office or to the previous owner?

I agree but are you just buying this business with the aim or running it for 3 years only? Are you not thinking about visa extension or ILR? if not then its fine as then it is your call. When I decided on what to do I was clear that I need to run it for at least 5 years and there should not be any hicups when I have to file for extension. But still they can ask for initial acceptance letter from the business showing the terms at what they have agreed and this will be the make or break document. They will not just issue the visa if you say in the plan that I have approched and the franchisor has agreed. This is what I think can happen as the HO are not taking things lying down they want proof

What are your views on this?

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Re: Taking over a franchise

Post by Tier1newbie » Tue Feb 19, 2019 7:39 pm

Hammad Zafar wrote:
Tue Feb 19, 2019 4:19 pm
Also, did you get the visa? and if yes then what way did you apply? Did you take over the existing franchise or did you join the current franchisee and became 50% director/shareholder and then invested £200,000 in that companies accounts?
Yes by the Grace of God my visa was approved and I joined a business as a director and invested 200K in the company as director loan as the company was in loss when I joined, so it required the funds to boost the business.

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Re: Taking over a franchise

Post by Hammad Zafar » Fri Feb 22, 2019 10:31 am

Many thanks for your reply.

My query is that as now I am purchasing the business from the head office for £175,000 which includes all the current agreements of lease, fixtures and fittings and stocks, does this money count towards 'INVESTED MONEY''? I will be showing the rest £25,000 as marketing and refurbishment of the current franchise and the total will then be £200,000 investment in the business. Do you think this is right? Or the purchases that I am making for £175,000 from the head office won't be counted as investment?

I will be taking over the company that's running the current franchise so technically, the purchase of the business for £175,000, money will be going in the business account. So do you think this £175,000 will be counted as investment and I can quote this to the interviewer at the initial stage once I apply for the visa that I am doing like this?

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Re: Taking over a franchise

Post by marcnath » Fri Feb 22, 2019 9:23 pm

Hammad Zafar wrote:
Fri Feb 22, 2019 10:31 am
Many thanks for your reply.

My query is that as now I am purchasing the business from the head office for £175,000 which includes all the current agreements of lease, fixtures and fittings and stocks, does this money count towards 'INVESTED MONEY''? I will be showing the rest £25,000 as marketing and refurbishment of the current franchise and the total will then be £200,000 investment in the business. Do you think this is right? Or the purchases that I am making for £175,000 from the head office won't be counted as investment?

I will be taking over the company that's running the current franchise so technically, the purchase of the business for £175,000, money will be going in the business account. So do you think this £175,000 will be counted as investment and I can quote this to the interviewer at the initial stage once I apply for the visa that I am doing like this?
The head office can only sell the business to you for 175K if they own it. So, paying them is paying the existing owner.

Of course, if it is not an ongoing business but the Head office is only holding on to the assets, you can argue that it is not a business you are buying but just some assets. But you are indicating you are taking over the company. The money is obviously not going into the company's business account - it is going to the Head Office's business account.

What you should do is get a professional lawyer to review the arrangement and agreements to make sure it cannot be interpreted by HO as taking over a business. This forum will not be able to advice you with the information you have provided.
My comments are in no way meant to be advisory. I have no professional knowledge of immigration. These are based on my own experience, convictions and personal interpretation of publicly available information.

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